Electronic Invoicing · 2020-01-20 · e-Invoice Amendments if any could be possible only on GSTN portal 10000 line items per invoice IRP will provide JSON payload of both e-Invoice

New GST Returns for Enterprises |

Electronic Invoicing

Electronic Invoicing |

▪ No standard definition and model globally

▪ In India, need has been felt of having a standard to ensure complete interoperability of e-invoices across GSTN ecosystem

▪ A standard will ensure machine readability across business ecosystem eliminating data entry errors

▪ Standard of e-invoices expected to result in better compliance and ease for tax payer

▪ E-invoicing law in India is voluntary from January 2020 in phased manner and compulsory from 1 April 2020 for taxpayers with annual aggregate turnover over Rs 100 Crores

What is E-Invoicing?


Curb tax evasion through check on fraudulent ITC and Elimination of fake invoices

Rationale for Electronic Invoicing

One-time reporting on B2B invoice data to reduce reporting in multiple formats (one for GSTR-1 and the other for e-way bill) and to generate Sales & Purchase Registers (ANX-1 and ANX-2) from this data to keep the Return (RET-1 etc.) ready for filing. E-way bill Part-A would also be generated using e-invoice data

Introduction of e-invoicing shall enhance efficiency of the tax administration process

Ease of compliance and recon for user as separate entry for GST and EWB may not be needed

Reporting of invoices as an integral part of the business process to eliminate the process of compilation of invoices at the end of the month

Substantial reduction in ITC verification issues as same data will get reported to tax department and to the buyer in his inward supply (purchase) register. On receipt of info through the GST System – buyer can reconcile with his Purchase Order and accept/reject in time.


Operating model for invoice reference number

Invoice JSON pushed to registrar

Receives JSON containing:• Digitally signed e-invoice• QR code (contains basic

invoice details and IRN)

E-invoicing registrar - IRP

Registrar 1 (NIC)

GSTN & NIC system

Buyer

Buyer can view the ITC related to this invoice in his ANX-2

Generates invoice

Invoice data transmission Auto populate

• ANX-1, • ANX-2 ,• EWB Part A

• IRN stored in GST invoice registry

• De-duplication check

ERP/ASP

Other registrars

Seller

Buyer receives registered invoice details from IRP and can use QR code to verify the details

• Generates IRN• De-duplication check with GST system• Sign with digital signature and add QR

code• Send it to seller and buyer


Invoice Registration Portal GST System

▪ Seller to generate the invoice from ERP/Accounting system containing all mandatory fields as provided in e-invoice schema▪ Seller can upload the invoice

details (with all mandatory fields) in a JSON format on IRP to generate a unique Invoice reference number (IRN)▪ Seller may upload the JSON either - directly on IRP or - through GSP or ASPs- through third party provided Apps

▪ There will be one IRP in beginning (NIC) and others will be added later▪ IRP would generate the IRN. It would

also digitally sign the invoice and generate QR code which will contain all the key information of the invoice▪ IRP would send the JSON along with

signed invoice, IRN, QR code to the requestor/seller▪ E-invoice will also be sent to seller

and buyer on mail ID provided in invoice▪ IRP to perform duplication check from

a central uniqueness of IRN

▪ The IRP will transmit the data (e-invoice with IRN details) to:

- GSTIN - ANX-1 and ANX-2 would be updated (seller and buyer can view such data)

- EWB system (NIC portal) Part A of EWB to be created. Part B to be generated by the user itself

Seller

E-invoicing proposed workflow: Key aspects

As an alternate method, Seller can also generate IRN (as per the algorithm provided – Supplier GSTIN, Supplier invoice number and Financial year) at its end as well using its ERP or third party system. In such case, Seller would upload the IRN generated along with invoice details in JSON format, for verification by IRP


What modes will be made available for getting invoice registered?

Web based API based SMS based

Mobile app based

Offline tool based

GSP based


✔ 18 Sections (mandatory + optional) consisting of total 133 fields

✔ Out of the 18 Sections – 8 are Mandatory and 10 are Optional

✔ Within 8 Mandatory sections 34 fields are mandatory and 46 are optional. Must have 33 mandatory fields in e-invoice

✔ Within 10 Optional sections 35 fields are optional and 17 are mandatory (if you opt for any optional section, these are mandatory fields)

Proposed E-Invoice SchemaSr No Section Fields

Heading Nature Mandatory Optional

1 Basic Invoice details Mandatory 6 2

2 Supplier information Mandatory 5 5

3 Buyer information Mandatory 7 3

4 Delivery information Mandatory 4 4

5 Item details Mandatory 8 18

6 Document total Mandatory 3 3

7 Batch details Mandatory 1 2

8 Total details Mandatory 1 11

9 Delivery or invoice period Optional 2 0

10 Preceding invoice reference Optional 2 1

11 Other references Optional 0 7

12 Payee information (Seller) Optional 4 5

13 Extra information Optional 1 4

14 Ship to details Optional 7 3

15 Serial number Optional 0 3

16 Pre-tax details Optional 0 3

17 E-way bill details Optional 0 6

18 Signature Optional 0 1

Total 18 Sections 51 81

Based on updated schema released by government on 1st Jan 2020 and might be subject to changes


▪ Type of Transactions covered under e-Invoicing- B2B, B2G, Export, Through E-commerce operators & Reverse Charge Transactions

▪ Type of Documents covered under e-Invoicing- Invoices, DN, CN (including ISD invoice and CN)- Not to be entered : Delivery challan / Bill of Supply / Job works

▪ IRN should be mandatory for each and every invoice, and will be generated by IRP only

▪ IRP will validate the GSTIN existence (of seller and buyer) and de-duplication of the invoice

▪ No e-archiving service will be provided by IRP

Examination of Key Takeaways

Timeline

Enterprise Turnover Date Type of Regulation

> 500 Cr 1 Jan 2020 Voluntary

> 100 Cr 1 Feb 2020 Voluntary*

> 100 Cr 1 Apr 2020 Mandatory*

*Subject to further notifications


▪ QR code needs to be printed on the e-Invoice by the business

▪ Cancellation allowed only fully (within 24 hours on IRP after which on GSTN) and not partially. But the same invoice number can not be used again to generate another e-Invoice

▪ Amendments if any could be possible only on GSTN portal

▪ 10000 line items per invoice

▪ IRP will provide JSON payload of both e-Invoice & QR code (which will contain relevant information about the invoice and the IRN)

▪ Printing of invoice (including logo and other information) would be possible same as today. E-invoice schema only mandates what will be reported in electronic format to IRP

▪ Signature of seller would not be mandatory requirement

▪ Transporter ID parameter will be created in the e-invoice schema. Part A of the e-way bill will be populated from the e-invoice schema data itself

▪ EWB will continue to function as it is

Examination of Key Takeaways


▪ Understand the proposed model in detail to evaluate all business scenarios/transactions to analyse impact

▪ Evaluate what changes in IT systems/accounting software/ERP would be required including challenges if any

▪ Educating the internal and external stakeholders on proposed system

How to Prepare for E-Invoicing?


Detailed Review of E-Invoicing Schema


Review of Mandatory Sections (1/8) M: Mandatory; O: Optional; NA: Not applicable/ not required

Sr. No.

Field Name Field description E-invoice EWB New Return

Section 1 - Basic invoice details

(1) Invoice Reference number

Combination of Supplier GSTN, Invoice Number and Financial Year

M M M

(2) Code for Invoice type Reg/SEZP/SEZWP/EXP/EXPWP/DEXP M M M

(3) Invoice Sub_Type Regular / Credit note / Debit Note M M M

(4) Invoice Number Supplier invoice as generated by ERP/accounting system M M M

(5) Invoice date Format "YYYY-MM-DD" M M M

(6) Currency code Additional currency in which all Invoice amounts can be given along with INR

O NA NA

(7) Reverse charge Is the liability payable under reverse charge O NA M

(8) Version number To keep track of version of Invoice specification M NA NA



Sr. No.


Section 2 – Supplier information

(1) Supplier Legal Name Name as per PAN M M NA

(2) GSTIN of supplier Alphanumeric with 15 characters M M M

(3) Supplier address1 Address of the supplier M M NA

(4) Supplier address2 City of the supplier O O NA

(5) Supplier City City of the supplier O O NA

(6) Place State of the supplier M M NA

(7) Pin code Pin code of the supplier M M NA

(8) Trade name of supplier

A name by which the Supplier is known, other than Supplier name (also known as Business name)

O NA NA

(9) Phone Contact number of the supplier O NA NA

(10) Email id Email id of the supplier O NA NA



Sr. No.


Section 3 – Buyer information

(1) Billing Name Legal name of the buyer M M NA

(2) Buyer Trade Name Trade name of the Buyer M M NA

(2) GSTIN of buyer Alphanumeric with 15 characters M M M

(3) Buyer address1 Address of the buyer M M NA

(4) Buyer address2 Address of the buyer O O NA

(5) Place State of the buyer M M NA

(6) Pin code Pin code of the buyer M M NA

(7) State code Place of supply code of Supply M M M

(8) Phone Contact number of the buyer O NA NA

(9) Email id Email id of the buyer O NA NA



Sr. No.


Section 4 – Delivery information (including dispatch from details)

(1) Company Name Name of company from where goods are dispatched M M NA

(2) Address1 Address from where goods are dispatched M M NA

(3) Address2 Address from where goods are dispatched O O NA

(4) Place City name O O NA

(5) State Name of the State M M NA

(6) Pin code Pin code of the city M M NA

(7) E-commerce GSTIN Alphanumeric with 15 characters O M NA

(8) State code Place of supply O M NA



Sr. No.


Section 5 – Item details

(1) Serial number Serial number of the item M NA NA

(2) Item description Item classification identifier O O NA

(3) Is service Specify whether supply is that of Services or not O NA NA

(4) HSN code A code for classifying the item by its type or nature O M NA

(5) Batch details Applicable for certain manufacturing companies O NA NA

(6) Bar Code Item bar code if any O NA NA

(7) Quantity The quantity of items (goods or services) that is charged in the Invoice line

M M M

(8) Free quantity Detail of any FOC item O O NA

(9) UQC Unit of measurement O O NA

(10) Rate Item rate per quantity M O NA

(11) Gross amount Gross amount exclusive of GST O O NA

(12) Discount amount Total discount O O NA

(13) Pre-tax amount Pre-tax O O NA



Sr. No.


Section 5 – Item details

(14) Assessable value Net amount (for GST calculation) M M M

(15) GST rate Rate of GST as applicable M O M

(16) Iamt IGST Amount M M M

(17) Camt CGST Amount M M M

(18) Samt SGST Amount M M M

(19) Csamt Cess Amount O M M

(20) State Cess amount State cess amount per item O NA NA

(21) Other charges Other charges if any O O NA

(22) Invoice line Net Amount

The amount is “net” without GST, i.e. inclusive of line level allowances and charges as well as other relevant taxes

O NA NA

(23) Order line reference Reference to purchase order O NA NA

(24) Item total Net amount O NA NA

(25) Origin country Origin country of item O NA NA

(26) Serial number details Serial number details O NA NA



Sr. No.


Section 6 – Document total

(1) Tax total Total Tax Amount M M NA

(2) Sum of Invoice line net amount

Item level net amount O NA NA

(3) Sum of allowances on document level

Total discount O NA M

(4) Sum of charges on document level

Total other charges O NA NA

(5) Paid amount Sum of amounts which have been paid in advance M NA NA

(6) Amount due for Payment Outstanding amount that is requested to be paid M NA NA

Section 7 – Batch details

(1) Batch Name Batch number / Name M NA NA

(2) Batch Expiry Date Expiry Date O NA NA

(3) Warranty Date Warranty Date O NA NA



Sr. No.


Section 8 – Total details

(1) IGST Value IGST Amount as per invoice O M M

(2) CGST Value CGST Amount as per invoice O M M

(3) SGST Value SGST Amount as per invoice O M M

(4) CESS Value Cess Amount as per invoice O M M

(5) State Cess Value State cess Amount as per invoice O O NA

(6) Rate Tax Rate O M M

(7) Freight Charges O NA O

(8) Insurance Charges O NA O

(9) Packing and Forwarding Charges O NA O

(10) Other Charges Pre-tax / post charges O O O

(11) Round off Round off value O NA NA

(12) Total Invoice Value Total amount M M M


Review of Optional Sections (1/6) M: Mandatory; O: Optional; NA: Not applicable/ not required

Sr. No.


Section 1 – Delivery or invoice period

(1) Invoice period Start date

Format - DD/MM/YYYY M NA NA

(2) Invoice period End date

Format - DD/MM/YYYY M NA NA

Section 2 – Preceding invoice reference

(1) Preceding Invoice Number

Detail of Base Invoice which is being amended by subsequent document

M NA NA

(2) Invoice Document Reference

Invoice reference O NA NA

(3) Preceding Invoice Date Date of Invoice M NA NA



Sr. No.


Section 3 – Other references

(1) Receipt Advice Reference

Terms reference O NA NA

(2) Tender or Lot Reference

Lot / Batch Reference O NA NA

(3) Contract Reference Contract Number O NA NA

(4) External Reference Any other reference O NA NA

(5) Project Reference Project Reference O NA NA

(6) Ref Number Vendor PO Reference number O NA NA

(7) Ref Date Vendor PO Reference date O NA NA

Section 4 – Serial number

(1) Serial Number Serial Number in case of each item having unique number O NA NA

(2) Other Detail1 Other detail of serial number O NA NA

(3) Other Detail2 Other detail of serial number O NA NA



Sr. No.


Section 5 – Payee information (Seller)

(1) Payee Name Payee name M NA NA

(2) Payer Financial Account

Account Number M NA NA

(3) Mode of Payment Payment mode M NA NA

(4) Financial Institution Branch

Financial Institution Branch (IFSC Code) M NA NA

(5) Payment Terms Payment Terms O NA NA

(6) Payment Instruction Payment Instruction O NA NA

(7) Credit Transfer To specify credit transfer payments O NA NA

(8) Direct Debit To specify a direct debit O NA NA

(9) Credit Days Due date of Credit O NA NA



Sr. No.


Section 6 – Ship to details

(1) Shipping to Legal Name

Name to which goods and services invoiced were or are delivered

M M NA

(2) Shipping to Trade Name

Name to which goods and services invoiced were or are delivered

O O NA

(3) Shipping to GSTIN GSTIN of the receiver M M M

(4) Shipping to Address1 Address to which goods and services invoiced were or are delivered

M M NA

(5) Shipping to Address2 Address to which goods and services invoiced were or are delivered

O O NA

(6) Shipping to Place City name O O NA

(7) Shipping to Pin code City pin code M M NA

(8) Shipping to State State M M M

(9) Sub-supply Type Supply / Export / Job-work M M M

(10) Transaction Mode Regula / Bill-To / Ship-To M M NA



Sr. No.


Section 7 – Extra information

(1) Tax scheme GST, Excise, Custom, VAT etc. M NA NA

(2) Remarks Remarks/Note O NA NA

(3) Additional Supporting Documents url

Supporting document URLs O NA NA

(4) Additional Supporting Documents url

Supporting document in base64 format. O NA NA

(5) Invoice Allowances or Charges

Total Value of allowances and charges at invoice level O NA NA

Section 8 – Pre-tax details

(1) Pre-tax Particulars Pre-tax ledger/particulars O NA NA

(2) Tax On Pre-tax on gross amount or any other O NA NA

(3) Amount Amount O NA NA


Sr. No.


Section 9 – E-way Bill details

(1) Transporter ID Transporter ID O M NA

(2) Mode of Transport Road/Rail/Air/Ship O M NA

(3) Transport distance Distance of transportation O M NA

(4) Transporter Name Name of transporter O M NA

(5) Transporter Doc No Transporter document number O M NA

(6) Transporter Doc Date Transporter document date O M NA

(7) Vehicle No Vehicle number

Section 10 – Signature

(1) DSC Digital signature of the document O NA NA



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