The GST registered individual can use the e-Invoice System to upload all B2B invoices to the Invoice Registration Portal (IRP). The IRP provides the user with a unique Invoice Reference Number (IRN), a digitally signed e-invoice, and a QR code.
The e-invoice procedure entails adhering to a defined protocol that allows taxpayers to make and read electronic invoices in a consistent manner. Through the government-assigned dynamic quick response (QR) code, any computer system may read the e-Invoice raised by the taxpayer. This method assigns an Invoice reference Number (IRN) and a QR code that serves as a unique identification for the invoice filed.
The Invoice Schema is the sole thing that the e-Invoicing system defines. This implies that taxpayers are not required to create or raise invoices on the IRP. Taxpayers are required to create invoices using their internal accounting/billing software or ERP as part of the system’s procedure. These invoices should be uploaded to the “Invoice Registration Portal” by taxpayers. The IRP will verify the invoice data and send back a digitally signed e-Invoice with a unique “Invoice Reference Number” IRN and QR code.
From 1 April 2021, taxpayers having an aggregate revenue of INR50-100 crores in any previous financial year must install this new invociing mechanism mandatorily. SEZ-units, including free trade and warehousing zones, insurance businesses, banking companies, and financial institutions are among the industries that are excluded from e-invoicing (including NBFCs).
Transportation companies that move items by road in a goods carriage. suppliers of passenger transportation services Admission at multiplex cinemas is paid for by taxpayers.
Procedures for E-Invoice
If an invoice that should have been registered on the IRP isn’t, it won’t be considered a legitimate tax invoice for all GST purposes. Non-issuance of an invoice carries a penalty of 100% of the tax owed or Rs.10,000 (whichever is greater) every occurrence of non-compliance. An incorrect invoice may result in a Rs.25,000 penalty. With real-time invoice manipulation reporting. Fake GST invoices are easily traceable.
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