GSTN e-Invoicing Master Video: Watch in English

Hello everyone. We welcome you to this introductory video on various aspects [music] of e-invoicing in India.

This video will give us an overview of various functions like what is e-invoicing, [music] its applicability, reporting, IRPs, IRN generation,

verification, and some other important aspects about e-invoicing.

So, let's begin with the video.

Standardization has made our lives easier. Earlier, these mobile phones

easier. Earlier, these mobile phones used different chargers, but now they all use the same one, USB-C.

In a world where everything is getting standardized, why should invoicing be left behind?

Welcome to e-invoicing under the Goods and Services Tax Network, a revolutionary initiative that follows one standardized format for all types of businesses, making invoicing in India

more trustworthy, transparent, [music] and efficient.

What is e-invoicing?

E-invoicing means reporting details of specified GST documents to a government notified portal, that is Invoice Registration Portal, IRP, and obtaining

an Invoice Reference Number.

It doesn't mean the generation of invoices by a government portal. In

e-invoicing, taxpayers continue to create their GST invoices on their own accounting, billing, [music] or ERP systems. These invoices are reported to any of

the six authorized Invoice Registration Portals in a standard format called [music] schema and notified as Form GST Invoice 1. And generating invoice

Invoice 1. And generating invoice reference numbers on any [music] of these portals is free of charge.

Compliance documentation and exemption.

Taxpayers with aggregate turnover, [music] based on PAN, exceeding the notified threshold as per government notifications in any financial year since 2017 to 18.

The documents or supplies covered under e-invoicing are invoices, debit notes, credit notes,

B2B supplies, supplies to SEZ, exports, and deemed exports.

Sectors like SEZ [music] units, banks, insurance companies, transport agencies, cinema, government departments, and local bodies are exempted from

e-invoicing.

How e-invoicing started.

The GST Council, in its 37th meeting held on 20th September 2019, recommended the introduction of B2B electronic invoicing in a phased manner

under the goods and services tax framework.

The purpose of introducing e-invoicing is giving more power to taxpayers while saving their time and making the process fully transparent, simple, and easier.

The six core benefits of B2B e-invoicing are reduced GST return discrepancies, prefilled returns for faster filing,

direct e-way bill integration, recipient access and download, instant verification facility, and

standardization and business alignment.

Let us now hear from the CEO, GSTN, how e-invoicing plays an important part under the GST system.

E-invoice system in India was introduced after the GST reform was rolled in India in 2017.

E-invoice was started in the year 2020.

What e-invoice means is not that invoices are generated on GST portal.

What e-invoice essentially means is that the invoice is generated by the taxpayer on his ERP system and he pushes the data

to the central system. The total number of IRPs which are in operation are five. One of them is NIC which runs two

five. One of them is NIC which runs two invoice portals and there are four private players who also run the invoice IRP portal and collectively they

generate all the e-invoice in B2B which is required to be generated. [music] In

India we have adopted a phased rollout model in which first B2B [music] has been e-invoiced. The reason for selecting B2B first was that we have a

IGST model where the flow of credit between the states is an important parameter of Indian federal GST design which is essentially a dual GST where

both center and state jointly collect the GST. It essentially has a

the GST. It essentially has a three-corner model.

What are the three corners? One is the ERP system of the taxpayer, the second is the IRPs and the third one is the GST system. So when the

e-invoice is generated in ERP and the data is pushed through IRP to the central system a reference number is generated which is called invoice

reference number. This invoice reference

reference number. This invoice reference number is essentially a hash and critical pieces of data is that way exchanged with the central system of GST

in India. Invoice reference numbers are

in India. Invoice reference numbers are unique to each invoice and to ensure that these numbers are not duplicated as explained dedupe system on cloud is run

by GSTNs. In transaction tax what is

by GSTNs. In transaction tax what is very important is that the transaction is captured as early as possible. So,

when businesses generate invoice at the point of doing the transaction, if the transaction is captured, then the compliance quality improves manifold.

The turnover range within which the e-invoice is required to be reported in the first phase was businesses having turnover of 500 crore plus. Over a

period of time, this has been reduced and at present any business having a turnover over of 5 crore or more are required to generate e-invoice. The

generation of e-invoice is fairly smooth now and businesses have taken to e-invoice quite strongly. E-invoice

brings essentially multiple set of benefits to the taxpayer as well as the tax administration. By far the most

tax administration. By far the most important benefit for the tax administration is instantaneous reporting. But, as far as taxpayer is

reporting. But, as far as taxpayer is concerned, he also ensures that there are no transcription errors hereafter in the filing of the return because the return data from the e-invoice is

auto-populated in his return. Similarly,

at the point of generation itself, there is a mechanism which has been built by which even these buyer of the goods can get the e-invoice details after the same

has been generated. Thus, you can see that buyer and seller handshake takes place through the mechanism of e-invoice. Digital invoices can be used

e-invoice. Digital invoices can be used for other kinds of benefits such as bank loan, etc. Going forward, we see a digitization of transaction as an

important event which will be penetrating into B2C invoicing also. In

the long run, what we can expect is that all invoicing in India will be digital both at retail level for B2C as well as for businesses B2B. I am hopeful that

this tutorial and video shall be a good explanatory material for understanding as to how India achieved its e-invoicing journey and how industry

in India is using its e-invoice [music] system. After the detailed account of

system. After the detailed account of India's e-invoicing journey from the CEO GSTN let's get some more insights about the

working of e-invoicing in India.

E-invoicing implementation timeline.

India adopted a carefully planned gradual approach for e-invoicing implementation.

Starting with taxpayers having higher annual aggregate turnover and systematically lowering the threshold over time.

This is the e-invoicing timeline in a phased manner.

E-invoice schema.

The B2B e-invoice schema is a standardized JSON format specifically designed for business-to-business transactions under the GST framework. It

defines the mandatory, conditional mandatory, and optional data fields required for generating a valid invoice reference number through the invoice registration portal.

The schema standardization offers benefits such as machine readable, flexible structure, universal compatibility, [music]

and accommodate varied needs of economy.

While going through the e-invoicing schema, taxpayers will come across many terminologies such as AATO, enablement, JSON auto-population etc.

To understand what they mean and what purpose they solve, just visit the reference and stats section on the e-invoice master portal.

Understanding IRN. [music]

The invoice reference number or IRN is a unique 64-character alphanumeric hash generated by the invoice registration portal for every e-invoice reported. It

serves as a unique [music] identifier for the e-invoice throughout its life cycle and generated from four key parameters. These are seller GSTIN,

parameters. These are seller GSTIN, invoice [music] number, financial year, and document type.

The IRN is unique for each invoice. It

is valid for the entire e-invoice life cycle. It cannot be changed once

cycle. It cannot be changed once generated and can be used for e-waybill generation.

IRN cancellation.

If there's a mistake in the IRN from the taxpayer's side, it can be canceled within 24 hours from generation.

Understanding IRP.

IRP [music] or invoice registration portal is a government-approved platform where notified persons upload or report e-invoices. Currently, six portals are

e-invoices. Currently, six portals are authorized to generate [music] IRN on reporting of e-invoices as per rule 48

subsection 4 of the CGST [music] rules.

The master portal is the only platform where taxpayers get access to all the six IRPs at one place for reporting e-invoices and generating invoice

reference numbers free of charge. At

operational level, it is the GSTN-authorized platform [music] that serves as the cornerstone of the India's digital B2B e-invoicing ecosystem. The

core functions of IRPs [music] are real-time business and technical validation, IRN generation, digital signing, QR [music] code generation, and

system integration.

Currently, six IRPs serve India's e-invoicing needs. The two

e-invoicing needs. The two government-operated IRPs are IRP 1 and IRP 2.

The four private-operated IRPs are IRP 3, IRP 4, IRP 5, and [music] IRP 6.

Choosing IRP.

All IRPs offer the same core functionality as mandated by GSTN. You

can choose an IRP depending upon [music] additional features and user interface preferences, API documentation and integration support, customer support and service levels, and

existing relationships with a service provider.

Getting started with e-invoicing.

To get started with the e-invoicing process, taxpayers can choose from a handful of options suiting to their preferences.

For a step-by-step registration process for IRP, click on the getting started tab under IRP details.

E-invoice reporting process cycle.

Now comes the most important part, the eight-step e-invoice reporting process cycle.

Let's break it down for you.

Seller raises invoice using software in his or her end.

The invoice is reported on any of the six IRPs, and the IRN gets generated.

The IRN then gets transmitted to the GST system for deduplication check.

After the successful validation, an intimation is sent to IRP.

Assigned e-invoice with IRN number and QR code is returned to seller.

A copy of the e-invoice is sent to the GST system for auto population in the supplier's GSTR-1 return.

If applicable, a copy of the e-invoice is also sent to e-way bill portal. After

the supplier files GSTR-1, accepted IMS e-invoice entries go to the recipient's GSTR-2B as eligible ITC.

QR code.

The e-invoice also has a QR code.

This digitally signed QR code enables quick verification and authentication.

The QR code is generated by IRP along with IRN.

Has essential invoice details in encrypted format. [music]

encrypted format. [music] Is digitally signed by IRP for authenticity. Cannot be tampered with

authenticity. Cannot be tampered with and is mandatory on printed or PDF invoice.

Verification of B2B e-invoice.

Verification of the B2B e-invoice is critical for taxpayers. The three

available methods are GSTN e-services app, IRP mobile app or web portal, and public key verification.

If the signed e-invoice is tampered, verification will fail and the e-invoice will be considered invalid. [music]

Offline verification.

For offline verification, download the GSTN e-services app on your mobile.

Anyone can scan and verify the QR code using the e-services app or any other verification apps made available by the

authorized IRPs. It confirms whether the

authorized IRPs. It confirms whether the e-invoice was registered with the IRP and that the signature matches the IRN issued. A tampered QR code will fail

issued. A tampered QR code will fail this verification.

B2B e-invoice functionalities.

Let's take a look at the three main functionalities of B2B e-invoice verification.

These are search by IRN, verify the e-invoice by either entering the IRN number or filling the combination of supplier

GSTIN, financial year, document type, and document number.

Upload of JSON. Upload the signed e-invoice JSON file to extract and verify e-invoice details.

The system will parse the JSON and display all relevant information in a tabulated format. Scanning of QR code.

tabulated format. Scanning of QR code.

Follow this simple process to scan the QR code.

Out of the three, you can choose any verification that suits you the best.

E-invoicing makes GST compliance easier, simpler, and hassle-free.

This chapter of India's e-invoicing journey comes to an end, but the journey continues.

Hello everyone. With this, we come to the end of this video on India's e-invoicing journey.

And I hope you like it. I'm sure this video on India's e-invoicing journey has been informative and enriching.

For more information about it, please visit our master information portal.

For any queries related to e-invoicing, you can reach out to GSTN via our help desk or through social media platform.

The details of social media platform will be shown in the next screen.

With this, thank you for tuning in. Have

a good day.