E-invoicing Solution

E-invoicing Challenges at various stages of e-invoicing implementation
E-invoice implementation requires integration with external systems i.e. solution providers and Government systems. It also includes educating all stakeholders and departments within the organization. While these could be one-time processes, you need to ensure that there is a system in place to keep everyone updated about the new developments and changes within the organization. Being aware of the challenges, it is required to take necessary steps to overcome them and find relevant solutions promptly. This will also help in avoiding any upcoming problems before hand.

QR Code-The new identity of a B2B invoice | QR Code and E-invoicing | E-invoicing and B2B QR Codes

E-invocing - how to use e-invoice or QR Code
E-invoicing as much as it impacts the suppliers, it has a ripple effect on the purchase cycle too. And the consequences of non-compliance by supplier can cost recipient their ITC. And who wouldn’t want to safeguard themselves against this risk and put checks and processes in place.

Just for a quick recap, e-invoicing in India that went live on 1st October 2020 requires suppliers or e-commerce operators on behalf of their suppliers to get their documents registered on the Government designated system i.e. Invoice Registration Portal (IRP). Once registered, IRP sends back a unique invoice reference number (IRN), a QR Code and full invoice data, verified and digitally signed.

Now on, the e-invoice received from the suppliers (to whom the mandate is applicable) will have the extra-information related to IRN. Hence, the recipients now need to verify the same and keep it for records. Here are some important questions which as recipients of e-invoices, you need to be aware of and wherever needed, be prepared for.

E-invoicing for E-commerce Operators

E-commerce operators are allowed to generate IRN on behalf of a supplier. However, it is important that the e-commerce platform should mandatorily be registered as e-commerce operator under GST. The latest update on the GST Portal is that E-Commerce Operators have been enabled to register and test the APIs on the sandbox system. Services provided by E-commerce come under RCM i.e. Reverse Charge Mechanism. In order to know whether these service invoices require IRN or not turnover of the commerce operator is important. You can read more about E-invoicing and RCM here. The transactions made through ecommerce platform are normal supplies made by suppliers and hence in order to know whether e-invoicing is required for these or not supplier’s turnover is important. The overall principle of generating an IRN still remains the same i.e for B2C transactions IRN generation is not applicable.

E-invoicing starts in a month and the onus of creating invoices and getting them registered on the Invoice Registration Portal (IRP) lies on the Supplier. This, in a usual scenario can work fine. However, for a business, there are multiple transactions that need to be reported under Reverse Charge Mechanism (RCM). The companies are in a state of confusion on RCM transactions when e-invoice goes live as in the case of RCM, Purchaser issues self-invoice which is reported in GST returns and under E-Invoicing, Purchasers under no situation can generate Invoice Reference Number (IRN).

E-Invoicing Implementation
5 key areas that businesses need to strategize about considering the overall impact of e-invoicing on current practices, cost and efforts. The mandate kicks on 1st October 2020

E-invoice New API Specification has been released today in line with the updated e-Invoice standard fields released early Feb 2020.

In a move to check tax evasion and make data inter-operable between entities Government is mandating e-invoice standard in India from April 2020. Under this standard companies with turnover of more than 100 CR are required to register all their invoices with the government portal and generate Invoice Reference Number (IRN).