Overview of EInvoicing Under GST—Adyasha Mohanty

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The Tax Publishers GST--E-Invoicing Overview of E-Invoicing Under GST Adyasha Mohanty The learned author seeks to make an overview of E-invoicing under the GST law. 1. Introduction Electronic invoicing in India has streamlined Business to Business (B2B) transactions by authenticating invoices through the Goods and Services Tax Network (GSTN's) Invoice Registration Portal (IRP). To ensure interoperability, invoices must comply with the published schema. This system maintains evidence and promotes transparency, addressing the current need for transaction proof between sellers and buyers. Under e-invoicing, sellers are required to validate invoices on the GSTN portal, receiving a unique Invoice Reference Number (IRN) for each transaction. The IRP then shares a copy of the tax invoice with both parties. Real-time tracking enables the government to combat fake invoices and tax fraud. Additionally, e-invoicing automates the process of GST return filing and e-way bill generation, by eliminating manual data entry errors and making the process efficient and error-free. The Hon'ble Odisha High Court in judgment of Amit Beriwal v. State of Odisha Opp. Party (2020 SCC Inline ORI 546) has discussed the fraudulent use of fake invoices and the broader implications of such practices on the GST regime. It highlights the need for strict measures against the misuse of the GST framework through fraudulent invoicing, emphasizing that non-compliance with invoice generation can lead to significant legal repercussions. 2. Background The GST Council in its 37th meeting held on September 20, 2019, has approved the phased introduction of e-invoicing in GST. Initially, B2B invoice reporting was voluntarily implemented starting January 1, 2020. Later, in its 39th meeting on March 14, 2020, the Council exempted specific registered persons from issuing e-invoices and postponed the mandatory implementation date to October 1, 2020, for certain taxpayer categories. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--E-Invoicing

Overview of E-Invoicing Under GST

Adyasha Mohanty

The learned author seeks to make an overview of E-invoicing under the GST law.

1. Introduction

Electronic invoicing in India has streamlined Business to Business (B2B) transactions by authenticating invoices through the Goods and Services Tax Network (GSTN's) Invoice Registration Portal (IRP). To ensure interoperability, invoices must comply with the published schema. This system maintains evidence and promotes transparency, addressing the current need for transaction proof between sellers and buyers. Under e-invoicing, sellers are required to validate invoices on the GSTN portal, receiving a unique Invoice Reference Number (IRN) for each transaction. The IRP then shares a copy of the tax invoice with both parties. Real-time tracking enables the government to combat fake invoices and tax fraud. Additionally, e-invoicing automates the process of GST return filing and e-way bill generation, by eliminating manual data entry errors and making the process efficient and error-free.

The Hon'ble Odisha High Court in judgment of Amit Beriwal v. State of Odisha Opp. Party (2020 SCC Inline ORI 546) has discussed the fraudulent use of fake invoices and the broader implications of such practices on the GST regime. It highlights the need for strict measures against the misuse of the GST framework through fraudulent invoicing, emphasizing that non-compliance with invoice generation can lead to significant legal repercussions.

2. Background

The GST Council in its 37th meeting held on September 20, 2019, has approved the phased introduction of e-invoicing in GST. Initially, B2B invoice reporting was voluntarily implemented starting January 1, 2020. Later, in its 39th meeting on March 14, 2020, the Council exempted specific registered persons from issuing e-invoices and postponed the mandatory implementation date to October 1, 2020, for certain taxpayer categories.