GST e-Invoicing

Eligibility and Exemption
GST e-Invoicing: Eligibility and Exemption

GST e-Invoicing: Eligibility and Exemption

GST e-Invoicing: Eligibility and Exemption

The government of India has mandated businesses above the notified turnover threshold to manage B2B invoices online. The process under GST becomes easy with e-invoicing software. If you want to understand more about e-invoicing, you need to keep scrolling till the end.

Understanding e-Invoicing Under GST

E-Invoicing under GST is a new provision started by the government to ensure there is interoperability of the invoice data. After creating the invoice, user needs to be uploaded to the portal for validation. Once it is successfully validated, a unique IRN, as well as a QR code, will get attached to the invoices. Any invoice without the IRN and QR code isn’t considered valid.

How Does an e-Invoice Work in GST?

The working procedure of an e-invoice in GST is quite simple. Businesses need to make their invoices in a specific format and upload it to the IRP for validation and IRN-QR code generation. The user further utilizes the invoice details and send it to the buyer with QR code.

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Learn about the changes that e-invoicing brought into the operation of B2B invoices.

Format: All taxpayers need to follow the generic SCHEMA format for e-invoices.

Signed and validated digitally: e-Invoices are completely authentic because they are signed and validated digitally in real time.

●    Auto-population of data: The IRP shares data from e-invoices with the GST portal. Therefore, the details from the e-invoices get auto-populated in your GST returns. 

●    E-way bills: e-Invoice data is also shared with the e-way bill portal. Part A of the e-way bill gets auto-populated from the same. 

●    Recipients:  Real-time visibility of invoice details in GSTR-2A that confirms the ITC 

E-Invoicing Eligibility

With the recent update, any business with an annual aggregated turnover of Rs 10 crores and more can avail of e-invoicing under GST. The following documents are under the scope of e-invoicing, meaning, e-invoice need to be generated when these documents are issued by the supplier: 

● Debit notes

● Credit notes

● Export invoices

● RCM invoices

● B2G invoices

● B2B invoices 

E-Invoicing Exemption

E-invoicing is primarily for B2B invoice, and B2C invoices are exempted from the process. The companies that are required to generate e-invoices must be registered with the Goods and Services Tax (GST) in India. So, if your company is not registered with GST, then you don't need to generate e-invoice. 

Moreover, the FTWZ and SEZ Units are also not allowed to generate e-invoices. Any registered individual enabling the exhibition of cinematograph films on multiplex screens is also exempted from e-invoicing, according to CBIC.

GTAs transporting goods by road in a goods carriage and transport service providers offering passenger transport services are also exempted.

Other businesses, types of supplies, and documents exempted from e-invoicing are as follows:

● Input service providers

● Supplies received through the import of services

● Supplies received from unregistered person

● Import bills of entry

● Bills of supplies

B2C invoices 

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The Best E-Invoicing Software for Your Business

If you are looking for e invoice software for your business, TallyPrime is the best solution. It comes with the following benefits:

·      Generate e-invoices instantly

·      Generate Bulk e-invoices

·      Cancel e-invoice online

·      Generate e-way bill along with e-invoices

·      Exclusive e-invoice report to track all e-invoicing tasks and status

·      Eliminates the need to report the same invoice details report multiple times

TallyPrime can work as your comprehensive business management software solution. Therefore, you can start using the software today. If you want to explore more about the software, enjoy the free trial.

Bottom Line

e-Invoicing has been a successful law imposed by the government. It is serving its purpose without creating the burden of compliance on businesses. As more businesses are adopting the e-invoicing rule seamlessly, the chances of tax evasion are reducing. With the help of e-invoicing software in the market, business management will also get easier.

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