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Government made e-invoicing mandatory and how can you implement it for your business.

Last updated on July 2, 2021 Enterprise Solution

E-Invoicing

Quick answer: Under India’s GST rules, e-invoicing requires eligible businesses to report B2B invoices to the Invoice Registration Portal to get an IRN and QR code. The turnover threshold has been lowered several times since this article was written, so check the current limit on the official e-invoice portal.

E-Invoicing is now Mandatory to any Company which has a revenue of 50 Cr per annum. Previously it was mandatory only for companies with annual revenue of 500 Cr. Companies above 500 Cr revenue can enable E-Invoicing through direct contact with the GST / Finance Ministry for API Integration. However, the same does not apply to companies below 500 Cr revenue per annum. Such companies must contact one of the 55+ GST Suvidha Providers or GSPs who in turn will give login credentials and facilitate the fundamental technical requirement for E-Invoicing implementation.

However, this is not sufficient as the APIs are not readily compatible with all ERP / Invoicing systems. Mahadhi Technologies Pvt Ltd has implemented E-Invoicing for such companies by being a bridge between the GSPs and the company to ensure a smooth transition to E-Invoicing and better technical integration (ERP / Invoicing Software with E-Invoicing system of Govt. of India.)

E-Invoicing Regulations

  • It is mandatory for any company doing business in India with an annual turnover of INR 50 Cr or more.
  • Companies with INR 500 Cr+ revenue can directly contact the E-Invoicing Dept of GSTN, but any company below this must go through GSPs or GST Suvidha Providers.
  • E-Invoice must contain IRN (Invoice Reference Number) generated by GST server based on the Invoice details provided.
  • E-Invoice Generation creates an acknowledgement number and an acknowledgement date.
  • Each E-Invoice has a Unique QR Code through which the end customer or anyone can verify the validity/authenticity of this E-Invoice.

Mandatory information required for generating an E-Invoice

  • GSTIN, Name, Address and Contact of seller and buyer
  • HSN code and applicable percentage of IGST/CGST/SGST
  • GST State codes of both buyer and seller
  • Trade name and Legal name of buyer as per their GST Certificate
  • Date of Invoice, Goods / Service details

What should an E-Invoice contain?

  • QR Code
  • IRN or Invoice Reference Number
  • Acknowledgement Number and Date
  • Invoice Details as submitted to the E-Invoicing Portal

Do you want to implement
e-invoicing for your business?

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Implementing e-invoicing in your ERP

Connect your billing or ERP system to the official GST e-invoice portal so invoices are registered automatically. We add e-invoicing to custom ERP software.

Related service: Need an ERP, CRM, HRMS or inventory system built around your processes? See our custom software development services or talk to us about enterprise web applications.

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