Your Complete Guide for e-Invoicing

1
Your Go-to-Guide for
e-Invoicing
www.open.money
E-INVOICE
We have paved our paths to a future with 100
digital transformation where it will no
longer be an option, as digital will be the
only way of doing business says Bengt Nilsson,
CEO of Pagero, a global network designed to
make businesses easy.
Contact Details Item Details
IRN XXXXXXXXXX
Businesses are chasing ?exibility to thrive in
the digital world of tomorrow. With the rise in
digital adoption across all business sizes, the
global market is forecast to encompass 550
billion digital invoices annually. Source - The
e-Invoicing Journey_2019-2025, Billentis Report,
Pagero Along the same lines, the Government of
India introduced e-Invoicing in October 2020
through the Goods and Services Tax (GST) System.
e-Invoicing aims to standardize GST reporting
and invoicing to harmonize the tax system for the
Indian marketplaces. With this, the government
desires to achieve consistency in the entire GST
system, faster turn-around time and mitigate
frauds among all Indian businesses.
2
e-Invoicing Introduced to encourage tax compliance
E-INVOICE
e-Invoicing, a.k.a Electronic Invoicing, is a
process to make paperless invoices more
authentic by reporting them to the government
portal for validation before delivering them to
the customer. An e-Invoice consists of invoice
data in a more structured visual presentation.
e-Invoices are not something that is generated
from the central portal of the tax department.
In case of such centralization, businesses might
face unnecessary
Contact Details Item Details
IRN XXXXXXXXXX
restrictions while keeping up with the
regulations throughout the process. Therefore, a
comprehensive standard format has been provided
to speci?c taxpayers for raising e-Invoices
which comprise a few mandatory and optional
?elds. Businesses can do this from their
existing ERP, accounting billing software, or a
third-party GSP (GST Suvidha Provider) for
invoices and credit-debit notes. All the invoice
details are transferred to the GST portal and the
NIC (National Informatics Centre) portal in
real-time via the GSP APIs. This eventually
eliminates manual processing and helps
businesses easily ?le GST returns and claim GST
refunds. The speci?ed taxpayers must ensure that
the set parameters are supported by the
accounting/billing software used to generate the
invoice. The details are uploaded to the Invoice
Registration Portal (IRP) to obtain every
document's Invoice Reference Number (IRN). Such
invoice generated will be called the e-invoice.
3
JOURNEY OF E- INVOICE SYSTEM
Total No. of IRN (In crs) 9.3 9.4
10.2
9.7
9.5
9.5
9
8.9
8.4
8.1
8
7.5
7.4
6.4
5.9
5.7
5.6
Nov-20
Dec-20
Mar-21
Apr-21
May-21
July-21
Aug-21
Nov-21
Dec-21
Oct-20
Feb-21
June-21
Jan-21
Sept-21
Oct-21
Jan-21
Feb-21
01-10-2020- tax payers with turnover gt Rs. 500 Cr
Average no. of invoices generated per day
Highest no. of invoices on 30/ 9/ 2021
48.35 Lakhs
38 Lakhs
01-04-2021- tax payers with TO between Rs. 20 Cr
Rs. 50 Cr
01-04-2021- tax payers with TO between Rs. 50 Cr
Rs. 500 Cr
1.48 Lakhs Suppliers
144 Crores e- invoices
7.85 Lakhs Recipients
01-04-2021- tax payers with TO between Rs. 50 Cr
Source - e-invoice System, Nation Tax Market
Understanding NIC (National Informatics
Centre) NIC is a government organization under
the Ministry of Electronics and IT, Govt. of
India. It focuses on CCS (Citizen Centric
Services) by providing the state-of-art
technology solution to the e-governance projects
of the state and central government. How is an
e-Invoice different from an invoice? e-Invoicing
is more than replacing paper invoices with
electronic invoices. It involves integrating
business processes and systems. It is an invoice
issued, transmitted, received, processed, and
stored electronically that follows a prede?ned
format. It is an integrated solution that
seamlessly enables a fully automated ?ow from one
ERP system to another with enhanced security and
traceability. An e-invoice is a more authentic
and compliant version of an invoice that consists
of an IRN (Invoice Reference Number) and a QR
code.
4
Understanding IRN It is a unique Invoice
Reference Number that can be generated by the
seller or left blank while submitting the
invoice to the IRP (Invoice Registration Portal).
The invoice is valid for uploading on IRP only
if it has an IRN. If the seller generates the
IRN, the e-Invoice system will validate it. In
case it has been left blank, the e-Invoice
system generates an IRN for each invoice
applicable for e-Invoicing. Generation of QR
code A QR (Quick Response) code in an e-Invoice
is a legal requirement as per the GST law. The
IRP shall af?x the QR code on every e-invoice
having multiple uses such as - Helps ef?ciently
capture data contained in an invoice for quick
and accurate input. Helps the indirect tax
of?cers to validate the invoice details from
anywhere, any time. Helps suppliers generate the
PDF of a digitally signed e-Invoice in a single
click.
Date of the generation of invoice
GSTIN of the supplier
Invoice value
What information does an e-Invoice QR code
comprise?
Number of line items
GSTIN of the recipient
Invoice number given by the supplier
HSN Code of the main item
Unique Invoice Reference Number/Hash
5
SELLER
1. Generate e-invoice from open.money
2. e-invoice details sent
4. Print QR Code on the invoices and issue
it to the buyer
3-b. IRP validates and generates IRN e-way
bill which is sent back to the supplier
3-a. E-way bill no. and validity date
3. Invoice data transmitted to GST and E-way bill
server
GST
e- Way
Buyer can view the ITC related to the invoice in
their GSTR-2A
BUYER
Holistic automation of business and tax processes
e-Invoices that are issued using clearance models
reduce tax compliance costs by 37-39 for
corporate businesses and 8-56 for private
businesses compared to paper invoices. Source -
The e-Invoicing Journey_2019-2025, Billentis
Report, Pagero Even for larger businesses, it
is often too dif?cult to comply with the rapidly
changing requirements using in-house solutions. T
herefore, it is even more important to involve
third-party solutions and service providers to
support them through this transition phase.
6
Who is applicable?
e-Invoicing applies to all businesses registered
under GST and issuing B2B invoices. From April
1st, 2022, every business crossing an aggregate
turnover of over ?20 Cr. from any preceding year
after FY 2017-18 to 2021-22 is required to
follow the current e-Invoicing guidelines. The
aggregate turnover includes all GSTINs under a
single PAN across India.If the turnover
B2B
in the last FY were below the threshold limit but
increased beyond the current year threshold,
then e-Invoicing would apply from the beginning
of the next ?nancial year. What is aggregate
turnover? The aggregate value of all taxable
supplies (excluding the value of inward supplies)
on which a person pays tax on a reverse charge
basis, exempt supplies, export of goods and
services or both, and inter-state supplies of
persons having the same Permanent Account Number
to be registered on all India basis. This
excludes central tax, state tax, Union Territory
tax, and integrated tax.
Inter-State supplies of persons having same PAN
Taxable Supplies
Aggregate Turnover
Export supply of goods and services or both
Exempted Supplies
Zero-Rated Supply
7
Business continuity with e-Invoicing
Eliminate fake invoices and fraudulent ITC,
eventually curbing tax evasion Enhance the
ef?ciency of the tax administration process Avoid
separate entries for GST and e-Way Bill resulting
in ease of compliance and reconciliation Save
time and effort with uni?ed reporting of B2B
invoice that can be referred to for GSTR-1 and
e-Way Bill No compilation of invoices in the
month end with the integral and timely reporting
of all invoices Reduce ITC veri?cation hassles
with auto-reported data in the tax department
and to the buyer - substantial reduction in ITC
veri?cation hassles
e-Invoice
Status
Generated
Contact Details
Item Details
Not Generated
Generated
IRN XXXXXXXXXX
Save Time
Real-Time Updates
ISO 27001
Data Security
7
8
e-Invoicing model outline
8
9
Things to be taken care of

• Understand the proposed e-Invoicing model in
  detail to evaluate all the business scenarios
  and analyze its impact
• Evaluate what changes in your ERP/ accounting
  software will be required to overcome technical
  challenges
• Educate the internal and external stakeholders
  for effective execution of the process
• Looking for a tool that helps you generate
  e-Invoices quickly and easily? With Open, you
  can not only generate e-Invoices in a single
  click but can also convert your existing
  applicable invoices to e-Invoices. It enables you
  to generate, download, view or cancel an
  e-Invoice from a single dashboard.
• So what are you waiting for? Its time to make you
  r business future-ready while complying with the
  latest tax regulations with Open!

Explore Open
www.open.money
9