e-Invoicing, also known as "electronic invoicing," is a method in which GSTN authenticates B2B invoices digitally before allowing them to be used on the standard GST portal. The Invoice Registration Portal (IRP), which is operated by the GST Network (GSTN), will assign an identification number against each invoice under the electronic invoicing system. The National Informatics Centre unveiled the first IRP at einvoice1.gst.gov.in. All invoice details will be forwarded in real-time from this platform to the GST and e-way bill portal. As a result, there will be no need for physical data entry while filing GSTR-1 report or generating part-A of e-way bills because the details will be transferred directly from the IRP to the GST portal. From October 1, 2020, all businesses with a turnover of more than Rs.500 crore in each of the previous financial years from 2017-18 to 2019-20 are required to use e-invoicing.
Furthermore, beginning January 1, 2021, e-Invoicing has been made mandatory for businesses with a turnover of more than Rs.100 crore in each of the financial years 2017-18 to 2019-20. The CBIC announced on March 8, 2021 that e-Invoicing will be mandatory for businesses with a turnover of more than Rs.50 crores (in any fiscal year from FY 2017-18 onwards) from April 1, 2021. Taxpayers who use e-invoicing must generate invoices on their own internal systems (ERP/accounting/billing software) and then submit them to the Invoice Registration Portal online (IRP). The IRP will check the details on the invoices and deliver the taxpayer digitally signed e-invoices with a unique "Invoice Reference Number (IRN)" and QR Code. Transportation, insurance, and finance companies are excluded from e-invoicing, as are other financial institutions, non-banking financial companies, goods transportation agencies, and passenger transportation facilities. Whereas under e-invoicing, companies must create an invoice identification number (IRN) from a government website and deliver it to authorities when transporting goods. That being said, regardless of turnover, e-Invoicing will not be applicable to the following categories of registered individuals, according to the Central Board of Indirect Taxes and Customs (CBIC) notice.
- An insurer, a bank, or a financial institution, including a non-banking financial company (NBFC).
- A Goods Transport Agency
- An individual who is approved to provide passenger transportation facilities.
- A certified individual who offers facilities such as access to cinematographic film screenings in multiplex.
- A special economic zone (SEZ)