{"id":10604,"date":"2021-01-21T00:09:41","date_gmt":"2021-01-20T18:39:41","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=10604"},"modified":"2023-05-18T22:29:40","modified_gmt":"2023-05-18T16:59:40","slug":"impacts-of-gst-e-invoicing-system","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/","title":{"rendered":"Impacts of GST E-Invoicing System"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69ea9d7501492\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69ea9d7501492\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#Impacts_of_E-Invoicing_System_for_businesses_under_the_GST\" title=\"Impacts of E-Invoicing System for businesses under the GST\">Impacts of E-Invoicing System for businesses under the GST<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#What_is_an_electronic_invoice\" title=\"What is an electronic invoice?\">What is an electronic invoice?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#Workflow_of_invoice\" title=\"Workflow of invoice\">Workflow of invoice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#Interaction_between_supplierseller_with_IRP_GSTE-Way_Bill_System\" title=\" Interaction between supplier\/seller with IRP &amp; GST\/E-Way Bill System\"> Interaction between supplier\/seller with IRP &amp; GST\/E-Way Bill System<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#Interaction_between_buyer_with_IRP_GSTE-Way_Bill_System\" title=\" Interaction between buyer with IRP &amp; GST\/E-Way Bill System\"> Interaction between buyer with IRP &amp; GST\/E-Way Bill System<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#Timeline_Impact_of_Business_Based_on_Turnover\" title=\"Timeline &amp; Impact of Business Based on Turnover\">Timeline &amp; Impact of Business Based on Turnover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#GSTN_has_enabled_the_functionality_to_find_the_Invoice_Reference_Number_IRN_Via_Document_Number\" title=\"GSTN has enabled the functionality to find the Invoice Reference Number (IRN) Via Document Number\">GSTN has enabled the functionality to find the Invoice Reference Number (IRN) Via Document Number<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#BlockingUnblocking_the_E-Way_Bill_creation_system_if_fails_to_file_GSTR-3B_GSTN\" title=\"Blocking\/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN\">Blocking\/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#Reasons_for_the_Movement_of_Goods_under_the_GST\" title=\"Reasons for the Movement of Goods under the GST\">Reasons for the Movement of Goods under the GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#Overview_of_Invoice_Furnishing_Facility_IFF_Under_QRMP_Scheme\" title=\"Overview of Invoice Furnishing Facility (IFF) Under QRMP Scheme\">Overview of Invoice Furnishing Facility (IFF) Under QRMP Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/impacts-of-gst-e-invoicing-system\/#Key_characteristics_for_Auto-population_of_e-invoice\" title=\"Key characteristics for Auto-population of e-invoice\">Key characteristics for Auto-population of e-invoice<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><a style=\"font-size: 16px;\" href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/download-673-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-11569\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/download-673-1.jpg\" alt=\"www.carajput.com; E-invoiceing under GST\" width=\"814\" height=\"456\" \/><\/a><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Impacts_of_E-Invoicing_System_for_businesses_under_the_GST\"><\/span><span style=\"color: #ff0000;\"><strong>Impacts of E-Invoicing System for businesses under the GST<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"What_is_an_electronic_invoice\"><\/span><span style=\"color: #000080;\"><strong>What is an electronic invoice?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The documentation required for e-Invoicing and reporting to the Invoice Registration Portal (IRP):<\/p>\n<ul>\n<li>The supplier&#8217;s credit notes,<\/li>\n<li>Debit notes from retailer,<\/li>\n<li>Invoices from suppliers<\/li>\n<li>A specific mention should be disclosed under the statute, or any other necessary document, by a specific mention.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Workflow_of_invoice\"><\/span><span style=\"color: #339966;\"><strong>Workflow of invoice<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Picture1.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10605\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Picture1.png\" alt=\"www.carajput.com; Workflow of invoice\" width=\"832\" height=\"483\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Picture1.png 625w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Picture1-300x174.png 300w\" sizes=\"(max-width: 832px) 100vw, 832px\" \/><\/a><\/p>\n<ol>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Interaction_between_supplierseller_with_IRP_GSTE-Way_Bill_System\"><\/span><span style=\"color: #ff6600;\"><strong> Interaction between supplier\/seller with IRP &amp; GST\/E-Way Bill System<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Picture2.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-10606\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Picture2.png\" alt=\"www.carajput.com; Seller- registar(IRP) Flow of Activities\" width=\"837\" height=\"502\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Picture2.png 625w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Picture2-300x180.png 300w\" sizes=\"(max-width: 837px) 100vw, 837px\" \/><\/a><\/p>\n<p><span style=\"color: #000080;\"><u>Step 1:<\/u><\/span><\/p>\n<ul>\n<li>The invoice is created by the billing or accounting software of the Seller. This can be proprietary or third-<\/li>\n<li>party software that is aligned with the Standard of GST e-Invoice requirements or those using the utility program offered by EXCEL or GSTN.<\/li>\n<li>It needs to have the appropriate parameters\/fields req. By the laws of the GST Council, if not the optional ones. And most significantly, to submit to the IRP, the seller&#8217;s program must be able to create a JSON of the final invoice.<\/li>\n<li>JSON is a text format in which data between servers flows. You can later reconvert this text format to JAVA Script Objects. Only the JSON, not the entire invoice\u00a0is uploaded.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><u>Step 2<\/u>:<\/span><\/p>\n<ul>\n<li>An optional step that generates the Invoice Reference Number (IRN) (e.g. SHA256). The generation of IRN-Supplier GST Identification Number, Supplier Invoice Number, and the financial year includes three parameters.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><u>Step 3<\/u>:<\/span><\/p>\n<ul>\n<li>The seller uploads the JSON of the invoice along with the IRN (if generated) into the IRP. This can be done directly on the IRP or through GSPs-developed third-party applications (GST Suvidha Provider).<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><u>Step 4: <\/u><\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>To ensure that the same invoice is not repeated in the system, the IRP will validate the hash on the uploaded JSON and check the hash from the Central Register of the Central Registry.<\/li>\n<li>The Invoice Data adds a signature and the IRP adds a QR code to the JSON.<\/li>\n<li>This will include the GSTN number of the seller and buyer, invoice number and date, number of line products, major product HSN classified by hash, weight, etc.<\/li>\n<li>For the e-Invoice, which is unique to each invoice, this hash provided by the IRP will become the final IRN (Invoice Reference Number).<\/li>\n<li>The uniqueness is kept by maintaining a record in a central repository of invoice hashes.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\">Step 5:<\/span><\/p>\n<p style=\"padding-left: 40px;\">In the backend, the uploaded data is shared with the server maintained by the GSTN.<\/p>\n<p><span style=\"color: #000080;\">Step 6:<\/span><\/p>\n<p style=\"padding-left: 40px;\">along with the QE Code, a digitally signed JSON with IRN is given back to the seller. Also, the registered invoice is sent to both the buyer and the seller by e-mail.<\/p>\n<ol start=\"2\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Interaction_between_buyer_with_IRP_GSTE-Way_Bill_System\"><\/span><span style=\"color: #ff6600;\"><strong> Interaction between buyer with IRP &amp; GST\/E-Way Bill System<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"color: #000080;\"><strong>\u00a0<\/strong><u>Step 1:<\/u><\/span><\/p>\n<ul>\n<li>The GST system and the E-Way Bill System share the JSON of the uploaded e-Invoice along with the IRN.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><u>Stage 2:<\/u><\/span><\/p>\n<ul>\n<li>Update of ANX \u2013 1 and ANX 2 with the purchaser automatically by the GST method to evaluate the liability and the sum of the input tax credit.<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><u>Step 3:<\/u><\/span><\/p>\n<ul>\n<li>Using this information, the <a href=\"https:\/\/www.caindelhiindia.com\/blog\/corporate-and-professional-update-april-30-2016\/\">E-Way bill system<\/a> will create Part-A of the E-Way bill to which only the vehicle number should be attached in Part-B of the e-way bill.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Timeline_Impact_of_Business_Based_on_Turnover\"><\/span><strong><span style=\"color: #000080;\">Timeline &amp; Impact of Business Based on Turnover<\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/12\/e-invoicing-in-gst.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-12369\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/12\/e-invoicing-in-gst.jpg\" alt=\"e invoicing in gst\" width=\"2560\" height=\"869\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/12\/e-invoicing-in-gst.jpg 2560w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/12\/e-invoicing-in-gst-300x102.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/12\/e-invoicing-in-gst-1024x348.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/12\/e-invoicing-in-gst-768x261.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/12\/e-invoicing-in-gst-1536x521.jpg 1536w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/12\/e-invoicing-in-gst-2048x695.jpg 2048w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/12\/e-invoicing-in-gst-800x272.jpg 800w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/a><\/p>\n<ul>\n<li>The e-Invoice system is scheduled to be carried out on a volunteer basis from January 2020.<\/li>\n<li>Mandatory complexity of the program will be gradually enforced in phases to bring the entire system acclimatized to the new level of software changes in its accounting standards and business practices.<\/li>\n<li>Initially, the scheme will be made compulsory for businesses over a specific turnover, on a voluntary basis for everyone else.<\/li>\n<li>After that, it will gradually become uniformly mandatory.<\/li>\n<li>It is important to keep in mind that small and medium-sized taxpayers (with an annual turnover below Rs 1.5 Crores) can make use of GSTN&#8217;s cost-free financial reporting and billing systems.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"GSTN_has_enabled_the_functionality_to_find_the_Invoice_Reference_Number_IRN_Via_Document_Number\"><\/span><span style=\"color: #000080;\"><strong>GSTN has enabled the functionality to find the Invoice Reference Number (IRN) Via Document Number<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-24529\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/WhatsApp-Image-2023-05-18-at-10.09.24-PM.jpeg\" alt=\" functionality to find the Invoice Reference Number (IRN) through the Document Number\" width=\"1024\" height=\"429\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/WhatsApp-Image-2023-05-18-at-10.09.24-PM.jpeg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/WhatsApp-Image-2023-05-18-at-10.09.24-PM-300x126.jpeg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/WhatsApp-Image-2023-05-18-at-10.09.24-PM-768x322.jpeg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/WhatsApp-Image-2023-05-18-at-10.09.24-PM-800x335.jpeg 800w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><strong>Popular blog:-<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/carajput.com\/blog\/e-invoice-mechanism-under-the-gst\/\">E-Invoice Mechanism under the GST<\/a><\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"BlockingUnblocking_the_E-Way_Bill_creation_system_if_fails_to_file_GSTR-3B_GSTN\"><\/span><a href=\"https:\/\/carajput.com\/blog\/blocking-the-e-way-bill-creation-system-if-fails-to-file-gstr-3b-gstn\/\">Blocking\/Unblocking the E-Way Bill creation system if fails to file GSTR-3B: GSTN<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Reasons_for_the_Movement_of_Goods_under_the_GST\"><\/span><a href=\"https:\/\/carajput.com\/blog\/reasons-for-the-movement-of-goods-under-the-gst\/\">Reasons for the Movement of Goods under the GST<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Overview_of_Invoice_Furnishing_Facility_IFF_Under_QRMP_Scheme\"><\/span><a href=\"https:\/\/carajput.com\/blog\/overview-of-invoice-furnishing-facility-iff-under-qrmp-scheme\/\">Overview of Invoice Furnishing Facility (IFF) Under QRMP Scheme<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<li>\n<h4><span class=\"ez-toc-section\" id=\"Key_characteristics_for_Auto-population_of_e-invoice\"><\/span><a href=\"https:\/\/carajput.com\/blog\/key-characteristics-for-auto-population-of-e-invoice-details-in-gstr-1-2a-2b-4a-6a\/\">Key characteristics for Auto-population of e-invoice<\/a><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Impacts of E-Invoicing System for businesses under the GST What is an electronic invoice? The documentation required for e-Invoicing and reporting to the Invoice Registration Portal (IRP): The supplier&#8217;s credit notes, Debit notes from retailer, Invoices from suppliers A specific mention should be disclosed under the statute, or any other necessary document, by a specific &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9108],"tags":[9698,9697],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10604"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=10604"}],"version-history":[{"count":6,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10604\/revisions"}],"predecessor-version":[{"id":24531,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10604\/revisions\/24531"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=10604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=10604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=10604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}