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GST Update | E-Invoice Concept Note, FAQs released on GST portal

Proposed E-invoicing System:

As you may be aware the GST Council approved the standard of e-invoice in its 37th meeting held on 20th Sept 2019. In this regard, GSTN has recently issued a concept note on proposed E-invoicing system along with Frequently Asked Questions (FAQs) on E-Invoicing. This note explains the concept of e-invoice, how it operates and basics of standards. It also contains FAQs which answer the questions raised by people who responded to the draft e-invoice standard used for public consultation in past few months.

The basic aim behind adoption of e-invoice system by tax departments is ability to pre-populate the return and to reduce the reconciliation problems. Other benefits include better tax payer services, reduction in tax evasion and obtaining efficiency in tax administration.

Procedure

Generation of e-invoice will be the responsibility of the taxpayer who will be required to report the same to Invoice Registration Portal (IRP) of GST, which in turn will generate a unique Invoice Reference Number (IRN) and digitally sign the e-invoice and also generate a QR code. The QR Code will contain vital parameters of the e-invoice and return the same to the taxpayer who generated the document in first place. The IRP will also send the signed e-invoice to the recipient of the document on the email provided in the e-invoice.

The concept note also covers:

  1. Basics about e-invoice and implementation of the system with tax department;
  2. Benefits of e-invoicing from GST perspective including assistance of the same in return population;
  3. Responsibility of generation and reporting of e-invoice on Government’s portal;
  4. The workflow involved around generation of the e-invoice;
  5. Modes of generation of e-invoices such as Web based, API based, SMS, offline tool, using GSPs etc.

The document also contains some FAQs on topics such as contents of e-invoice, method of reporting e-Invoice to GST system, amendment/ cancellation of e-invoice, relationship with e-way bill and general questions.

Copy of the concept note along with standard template as available on public portal for your reference.


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