GST E-Invoicing Software

GST E Invoicing Software by Easy My Tax

E-invoicing under GST refers to the electronic generation of invoices as mandated by GST regulations. Similar to the requirement for GST-registered businesses to issue e-way bills when transporting goods, specific GST-registered businesses are also required to generate electronic invoices for Business-to-Business (B2B) transactions. As of the latest updates, starting from August 1, 2023, e-invoicing becomes mandatory for all GST-registered individuals whose aggregate turnover (as per their PAN) in any preceding fiscal year from 2017-18 onwards exceeds five crores. To facilitate a smooth transition to e-invoicing, Easy My Tax offers GST e Invoicing software designed to simplify and streamline the e-invoicing process for businesses. 

e Invoicing under GST by Easy My Tax

The e-Invoice system is a digital verification mechanism under India's GST framework, where B2B invoices are authenticated electronically by the GST Network (GSTN). This system facilitates the issuance of a unique identification number for every invoice via the Invoice Registration Portal (IRP), managed by GSTN. Upon generation, all invoice details are instantaneously transmitted from the invoice portal to the GST and e-way bill portals. This synchronisation eliminates the need for manual data entry during the GSTR-1 return filing and the generation of part A of the e-way bills, streamlining these processes.

Benefits of the e Invoicing System by Easy My Tax

The e invoicing system was implemented primarily to streamline GST return filing and improve reconciliation accuracy. Here’s a combined overview of its key benefits:

Streamlined Reporting and Efficient Record-Keeping: E-Invoicing facilitates one-time reporting of B2B invoices at the point of generation, eliminating the need to report in multiple formats. This simplification extends to maintaining sales and purchase registers, which can be effortlessly generated from e-invoice data, aiding in efficiently preparing GST returns under the new system.

Automated Tax Filing and E-Way Bill Generation: The integration of e-invoice data with the GST portal simplifies the tax filing process by auto-populating return forms and reducing manual efforts. Additionally, e-way bills can be seamlessly generated using this data, enhancing the logistics and transportation process.

Enhanced Reconciliation and Real-Time Tracking: e invoice in GST minimises the need for reconciliation between financial records and GST filings, thereby saving time and reducing errors. Real-time tracking of invoices also speeds up the validation of input tax credits and reduces verification issues, leading to quicker financial turnovers.

Fraud Prevention and Elimination of Fake Invoices: With real-time data access, tax authorities are better equipped to detect and prevent fraudulent activities. Moreover, the e invoicing system helps eliminate the generation of fake GST invoices, preserving the tax system's integrity and ensuring compliance.

Reduced Audits and Enhanced Financial Management: The detailed, transaction-level information provided by e invoicing GST minimises the likelihood of audits and surveys by tax authorities, decreasing the administrative burden associated with tax compliance. This transparency builds trust and facilitates better financial management and cash flow for businesses.
E-invoicing offers several advantages, notably its effectiveness in reducing tax evasion. Since eInvoices are generated before transactions are completed, the opportunity for altering invoices is significantly reduced.

Businesses Eligible for GST e Invoicing by Easy My Tax

e invoice GST will apply to all businesses registered under the Goods and Services Tax (GST) system and issue Business-to-Business (B2B) invoices.

GST eInvoice Applicability by Easy My Tax

As mentioned, The Indian government has steadily reduced the GST eInvoice limit for mandatory e-invoicing. As per the latest amendment, any business with a total turnover exceeding Rs. 5 crore in the previous financial year must generate e-invoices for all covered transactions. This revision came into effect on August 1st, 2023.

Transactions and Documents Requiring GST e-Invoicing by Easy My Tax

If your business falls under the current threshold and deals with any of the following transactions, you must generate e-invoices through the GST portal:
Documents: Tax invoices, credit notes, and debit notes are defined under Section 34 of the CGST Act.

Transactions: Taxable Business-to-Business (B2B) sales of goods or services, Business-to-Government (B2G) sales of goods or services, Exports and deemed exports, Supplies to Special Economic Zones (SEZs) with or without tax payment, Stock. transfers or supplies of services to distinct persons within a SEZ, Transactions with SEZ developers, Supplies made under the reverse charge mechanism (Section 9(3) of the CGST Act).

Who is Exempted from Generating e Invoice GST by Easy My Tax?

While e invoicing GST is becoming increasingly mandatory, certain categories of registered persons are exempted from these provisions. Here's a breakdown of who can skip e invoicing for now:

Financial Institutions: This exemption covers a broad range of entities within the financial sector, including insurers, banking companies, financial institutions, and Non-banking financial companies (NBFCs).

Goods Transport Agencies (GTAs): If your business provides services related to the transportation of goods by road (in a goods carriage), you're exempt from eInvoice.

Passenger Transport Service Suppliers: This exemption applies to businesses offering passenger transportation services.

Multiplex Cinemas: Registered individuals providing services through admission to exhibition of cinematograph films on multiplex screens are not required to generate e-invoices.

SEZ Units: Businesses operating within Special Economic Zones (SEZs) are exempt from e invoicing. It's important to note that this exemption applies only to SEZ units and not SEZ developers.

GST Invoice Format by Easy My Tax

The e-invoice format, as specified in GST rules, is designated as Form GST INV-1. In simpler terms, the structure or schema for e invoicing is outlined through Form GSTR INV-1. This form serves as a standardised template for electronically recording invoice details. To report these details to the Invoice Registration Portal (IRP), they must be presented in JSON format. The e-invoice format encompasses eight main categories, under which various details will be provided. These categories are as follows: Basic Details, Invoice Period, Preceding Document / Contract Reference, Receipt / Contract References, Supplier Information, Buyer Information, Payee Information, Delivery Information. Specific information, such as invoice item details, document totals, and additional data like port codes and batch details, must be included within these broad categories. It's important to note that per the e-invoice format, specific details are mandatory when submitting invoice information to the IRP. However, including some details may be optional depending on the nature of the business and specific transactions. This structured approach ensures consistency and accuracy in the electronic reporting of invoices.

Mandatory Information for e Invoicing by Easy My Tax

When preparing eInvoices, specific details are mandatory to ensure compliance and accurate reporting. These essential details include:
Code for Supply Type: Indicating the supply type, such as B2B for business to business, EXPWP for export with payment, or SEZWP for SEZ with payment.

Code for Document Type: Identifying the document type, such as INV for Invoice, CRN for Credit Note, or DBN for Debit Note.
Document Number: The invoice number follows GST rules and regulations.

Document Date: The date on which the invoice was issued.

Supplier Legal Name: The legal name of the supplier, consistent with their GST registration.

GSTIN of Supplier: The GST Identification Number of the supplier.

Supplier Address: The complete address of the supplier, including specific details like flat number and building number.

Supplier Place, State Code, and PIN Code: The location details of the supplier, including the place, state code, and six-digit PIN code.
Buyer's Name and GSTIN: The buyer's legal name, along with their GST Identification Number.

Place of Supply (State Code): Indicating the state code for the place of supply.

List of Items: Providing comprehensive information about the goods and services invoiced, including item descriptions, HSN codes, prices, and more.

Document Total Details: Provide details of the document total, including taxes, discounts, and other relevant calculations.

Ship-To Details (if applicable): Furnishing details regarding the shipping location if different from the buyer's address.

These mandatory details ensure e invoices conform to regulatory requirements and facilitate accurate and efficient record-keeping and reporting.

Types of Documents Reported to the IRP by Easy My Tax

The e invoicing system encompasses the following types of documents:
Invoices by the Supplier, Credit Notes by the Supplier, Debit Notes by the Recipient, Any other document required by law must be reported by the document creator.

Time Limit to Generate GST Invoices by Easy My Tax

The rules surrounding the timeframe for generating GST e-invoices have undergone recent changes. Here's a breakdown of the current situation:
A strict deadline exists for taxpayers with Aggregate Annual Turnover (AATO) exceeding Rs. 100 crore (as of May 1st, 2023). You must generate e-invoices for tax invoices and credit/debit notes (CDNs) within seven days of the invoice date. Please comply with this deadline to avoid your invoices and CDNs being considered non-compliant. No specific time limit is mandated by law for taxpayers with AATO below Rs. 100 crore.

Documents Required for E Invoicing by Easy My Tax

For e invoicing under the GST framework, the following documents are necessary:
Tax Invoices, Credit Notes, and Debit Notes: These should be issued in accordance with Section 34 of the CGST Act.
Applicable Transactions: Taxable Business-to-Business (B2B) Transactions, Business-to-Government (B2G) Sales, Exports and Deemed Exports, Supplies to Special Economic Zones (SEZs), Stock Transfers or Services to Distinct Persons, Supplies Under Reverse Charge as per Section 9(3) of the CGST Act.\