Comprehensive Guide: E-Invoice Glossary and Step-by-Step Process!
Rajnikant Patel
| Virtual CFO | Internal Audit | GST | SME IPO | Investment Banking | Startup Mentor | MSME Subsidy | Digital Economy | bmX | EcomBi | AiX-AieXtensive |
To support businesses in complying with GST regulations, the Goods and Services Tax Network (GSTN) has released two valuable resources: an E-Invoice Glossary and a Step-by-Step Guide. These documents are designed to make the e-invoicing process clear and easy to follow.
Let’s dive into a detailed overview and simplified explanation of e-invoicing.
What is E-Invoicing?
E-invoicing refers to the process of reporting specific GST documents to a government-approved platform, known as the Invoice Registration Portal (IRP). Once reported, the portal generates a unique Invoice Reference Number (IRN) and provides a digitally signed e-invoice with a QR code.
Contrary to popular belief, e-invoicing does not mean invoices are created by the government. Businesses will continue to generate invoices through their existing accounting or ERP systems. The IRP acts as a platform for validation and reference generation.
Who Needs E-Invoicing?
E-invoicing applies to taxpayers whose annual aggregate turnover exceeds ?5 crores (in any financial year since FY 2017-18). However, certain entities, such as government bodies and specific notified persons, are exempt. Taxpayers should consult the latest GST notifications for precise details.
Understanding Key Terms in E-Invoicing
The E-Invoice Glossary provides definitions for essential terms. Here are a few highlights:
For a complete list, explore the E-Invoice Glossary.
Step-by-Step Process for E-Invoicing
Implementing e-invoicing involves the following steps:
1. Enablement
2. Registration on IRP
The registration process includes a one-time OTP validation of your registered mobile number and email address.
3. Generate and Report Invoices
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4. Validation and IRN Generation
5. Issue Valid E-Invoice
6. Verification
Benefits of Using E-Invoicing Resources
E-Invoice Glossary
Step-by-Step Guide
Download the resources now:
Useful Links and Tools
To streamline the e-invoicing process, take advantage of the following resources:
Final Thoughts
E-invoicing is an essential compliance step for eligible businesses under GST. By following the steps outlined in this guide and leveraging the provided resources, you can ensure seamless implementation. Stay compliant, avoid penalties, and focus on growing your business.
This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event,?RMPS & Co.?or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.
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