All About e-Invoicing

Frequently Asked Questions

What is e-Invoicing?

e-Invoicing’ or ‘electronic invoicing’ is a system in which B2B invoices are uploaded/reported by the businesses to the Invoice Registration Portal (IRP) which are then authenticated electronically on the portal for further use on the common GST portal like for e-way bill generation, GST return filing. The Government introduced e-invoicing in October 2020.

What is the difference between regular invoicing and e-invoicing?

e-invoicing is not the generation of invoices by a Government portal. Businesses will countinue using their software to create GST invoices. The Supplier uploads Invoice details on a common e-invoice portal called Invoice Registration Portal (IRP) by billing software for validation and authentication by the GST Network.

Is there any registration needed for e-Invoicing?

In order to generate E-invoices, must register under the E-invoice portal first. Please visit e-Invoice registration in ValueSoft step by step

How e-invoice is generated?

Details of invoice is uploaded on Inovice Registration Portal(IRP) by billing software. After sucessful validation IRP returns a unique number - Invoice Reference Number(IRN) and QR Code.

Is e-Invoice always available on portal?

The E-Invoice is only available for two days on the Portal. Invoices that have been registered and verified will be automatically uploaded to the respective GST return and will remain there for the entire financial year.

What is Invoice Reference Number (IRN)?

An Invoice Reference Number (IRN) is a unique code generated by IRP. IRN is issued for every e-invoice. It is a combination of the three important part - The GSTIN of the Supplier, Invoice number of the supplier and financial year in format ‘YYYY-YY’..

Within how many days of invoicing, e-invoicing should be generated?

This question is wrong. A business invoice (computer invoice) without IRN and QR code is considered as invalid invoice. There will be penalty if the invoice is caught without having IRN and QR Code.

Can editing be done after e-invoicing is done?

No amendment or editing can be done once an e-Invoice has been generated. ValueSoft will lock that invoice from doing any editing.

Can I cancel invoice or what is the process of cancellation of an e-invoice?

Yes, e-invoice can be canceled within 24 hours of generation. That invoice will also need to be canceled in your billing software. Valuesoft provides you the facility to cancel e-invoice. Once cancelled, the same invoice number cannot be used again to generate another invoice.

What are the advantages of e-invoicing?

(a) Since the same data will get reported to the tax department in addition to the buyer in GSTR-2A & GSTR-2B so there will be considerable reduction in Input Tax Credit verification challenges.
(b) Helps in data reconciliation and accuracy.
(c) Reduced effort in GST return filing by auto-populating e-Invoice details on tax return forms
(d) Genuine ITC claims by buyers
(e) Reduced fraud and tax evasion
(f) Real-time tracking of e-invoices
(g) Easy verification by tax authorities
(h) Since all transaction details will be available online at all times so this would eliminate the need for frequent audits and surveys.
(i) No need to issue invoice copies in duplicate/triplicate.
(j) An e-invoice once generated can be used for GSTR 1, e-way bill generation.

What type of documents are covered under e-invoice?

(i) B2B invoices
(ii) Credit Notes
(iii) Debit Notes
(Note - B2C invoices are not required to report on IRP)

Which items are required to be printed in e-invoice?

Printing of IRN and QR Code is mandatory. The printed QR Code should be clear enough that it can be read by the QR code reader. The size and placement of the QR Code on the invoice is up to you. The Acknowledgment Number and Date provided by IRP are for reference only, they do not need to be printed.

Is the QR code required to be printed on the invoice?

Yes, the QR code must be printed on the e-invoice. It is mandatory.

Is it mandatory to generate the IRN?

The invoice will be considered invalid if it does not contain an IRN

Can I generate e-Invoice in bulk?

Yes, e-Invoice can be generated in bulk. However billing software will upload invoices to IRP one by one

Is the supplier allowed to send the e-invoice to the buyer?

Yes, the supplier can send the JSON and the PDF to the buyer in addition to business invoice generated by billing software. However, the business invoice must contain QR code and IRN.

Is e-Invoice mandatory for Bill of Supply(exempted goods) or non-tax invoices?

Separate invoices should be made for taxable and non-taxable supplies. The rule of e-invoicing is for Tax Invoices so there is no e-invoicing for Bill of Supply (outward supply of expempted goods or services)

Is it possible to have more than one QR code on the e-invoice?

Yes, but there should be proper notes for QR codes to clarify which QR code is for e-invoice.

Is IRP and IRN same?

IRP-Invoice Registration Portal and IRN-Invoice Reference Number are different. IRN is a unique number that is generated by IRP against every invoice uploaded by the supplier using Billing/Accounting software.

Can I verify QR code?

To verify the QR Code, you can download the mobile app from einvoice1.gst.gov.in >> Help >> Tools >> Verify QR

Is e-Invoice mandatory for all registered person/businesses?

E-Invoicing is mandatory to all businesses whose aggregate turnover has exceeded the Rs.10 crore limit in any of the previous financial years from 2017-18. However government is planning to make it mandatory for all businesses whose turnover is more than Rs. 5 Crore.

What is in QR code of e-Invoice?

QR code consists of the following E-invoice parameters:

• GSTIN of Suppliers
• GSTIN of Receivers
• Invoice number
• Invoice value along with taxable value, tax value
• Date of invoice
• Number of line items
• HSN code of main items
• Unique Invoice Reference Number (IRN)
• Date of generation of IRN

Is e invoice mandatory for 5 crore?

The aim is to bring all the small businesses under the formal economy. E-invoicing will be mandatory from January 1, 2023 for businesses with turnover more than Rs.5 crore, as recommended by the GST Council

Is IRN a invoice number?

No. Invoice number will be as per billing/accounting software.

What is price/rate of Valuesoft e invoice software price?

ValueSoft does not take any extra charge for e invoice. You get all facilities in our Standard Version. To know the rate of our software please visit Price list

Conclusion :

Businesses should prepare themselves for e-invoicing. Nothing extra needs to be done. With ValueSoft, you'll never have to worry about e-invoices, GST, or accounting. Valuesoft provides same GST & e-invoice facility like available in tally prime, Cleartax etc. It is one of the best and easy e invoicing solution available in India. Make Your Businesses e-Invoicing Ready With ValueSoft