GST Advisory-E-Invoice Glossary and Steps!

In today's rapidly evolving business environment, compliance with GST regulations is critical for maintaining smooth operations. E-invoicing is a significant step in this direction, designed to streamline invoicing processes, enhance transparency, and ensure the seamless flow of data across tax systems. By mandating the reporting of invoice details to authorized Invoice Registration Portals (IRPs) and generating unique Invoice Reference Numbers (IRNs), e-invoicing has transformed how businesses handle their GST-related documentation.

The GSTN has issued an advisory on E-Invoice Glossary and Steps on 29^th November 2024. Let’s understand the details!

Advisory dated 29th November 2024

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Advisory: E-Invoice Glossary and Steps

Nov 29th, 2024

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Dear Taxpayers,

GSTN has prepared an informative resource in the form of an e-invoice glossary and a step-by-step guide for your reference.

You can access and download the PDF document by clicking on the link below:

1. E-Invoice Glossary: https://tutorial.gst.gov.in/downloads/news/glossary_on_e_invoicing_v1_1.pdf

2. Step by Step Guide: https://tutorial.gst.gov.in/downloads/news/e_invoice_overview.pdf

Thanking You,
Team GSTN

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Key Highlights of the Advisory

GSTN has provided a glossary of the terms used in e-invoicing. Some important terms are as follows:

• IRP (Invoice Registration Portal): A platform for uploading invoices and generating IRNs.
• IRN (Invoice Reference Number): A unique identifier is generated for every reported invoice.
• AATO (Annual Aggregate Turnover): Used to determine eligibility for e-Invoicing.
• Enablement: The process of activating e-Invoicing for eligible taxpayers.
• JSON Format: A predefined format for uploading invoice details.
• API for e-Invoice Reporting: IRPs offer API-based functionality for reporting e-Invoices. API (Application Programming Interface) is a set of protocols for building and integrating software applications.
• Signed e-Invoice: This refers to an e-Invoice that has been digitally signed by the Invoice Registration Portal (IRP) after validation. The signed e-invoice is provided with a unique IRN and QR code.

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Also, GSTN has defined steps for implementing e-Invoicing:

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1. Enablement for e-Invoicing:  

Eligible taxpayers (With an annual turnover above ₹5 crores) are automatically enabled for e-Invoicing. The status can be checked on the e-invoice portal.

2. Registration on IRP Portals:
Taxpayers must register on one of the six authorized IRPs. The onboarding process includes OTP-based verification for creating login credentials.

3. Invoice Reporting:

• Upload invoice data using the INV-01 schema in JSON format.
• IRPs validate and return the invoice with a unique IRN and QR code.
• Invoice details are auto-populated into the taxpayer’s GSTR-1 return.

4. Verification of e-Invoices:
IRNs can be verified using the GSTN e-Invoice QR Code Verifier app or through the "Search IRN" feature on the e-Invoice portal.

5. Issuance of e-Invoice:
The taxpayer issues the validated invoice, including IRN and QR code, to the buyer. Only invoices with valid IRNs are considered compliant.

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Conclusion

E-invoicing marks a transformative step in the Indian GST framework, providing a robust mechanism to streamline compliance, reduce errors, and enhance tax transparency. By understanding key terminologies and following the outlined steps, businesses can easily navigate the e-invoicing process, ensuring compliance with regulatory requirements.

From enabling taxpayers to register on IRP portals, generating Invoice Reference Numbers (IRNs), and issuing compliant invoices, e-invoicing simplifies tax reporting and integrates seamlessly with existing ERP systems. The auto-population of invoice data into GSTR-1 returns further reduces manual intervention, making the process more efficient.

As businesses adapt to e-invoicing, leveraging the tools and resources available—such as the GSTN e-invoice portal and QR Code Verifier app—will ensure a smoother transition. 

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