e-Invoice System-GST
Transcript of e-Invoice System-GST
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e-Invoice System-GST
Dr. B. V. Murali Krishna,
Addl CCT(e Governance), Karnataka
e-mail: [email protected]
e-mail: [email protected]
Mobile: +9198440 41308
30.09.2020Thursday, October 1, 2020 1
Good. Simple. Tax
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Picture: Thousand Words
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Famous Quote!
• “If you fail, never give upbecause F.A.I.L means “FirstAttempt In Learning”.End is not the END, infactE.N.D means “EffortsNever Dies”, if you get Noas an answer, remember N.Omeans “Next Opportunity”.
Dr APJ Abdul Kalam
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Ease of Doing Business – Rankings out of 190 -2014/2015/2016
/2017 /2018/2019/2020 www.doingbusiness.org
Country DB 2014 DB 2015 DB 2016 DB 2017 DB 2018 DB 2019 DB2020
Brazil 116 120 116 123 125 109 124Russian Federation 92 62 51 40 35 31 28
India 134 142 130 130 100 77 63
China 96 90 84 78 78 46 31South Africa 41 43 73 74 82 82 84
Singapore 1 1 1 2 2 2 2United States 4 7 7 8 6 8 6
*Note: New Zealand is No 1 :DB 2017/2018/ 2019/2020
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“well begun is half done”
….....Aristotle.
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e-Invoicing
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01.10.2020
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“India is the only country that is doing it
(invoice to invoice matching).This is
unique….people will have to comply or they
will fall out of the GST Chain”.
David Raistrick,
Deloitte Global leader, for Indirect Tax.. ET, 25.10.2016
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Comments on Invoice Matching
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No of B2B Trans: in
EWB-March 2019
Invoice Value Range Number (Lakhs) Percentage
Less than 50 K 139.16 32%
50 K- 1L 89.04 20%
1L-2L 80.90 19%
2L-5L 65.34 15%
5L-10L 32.93 8%
10L-20L 18.70 4%
20L-50L 7.81 2%
50L-100L 0.98 0%
More than 100L 0.49 0%
Total 435.39
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No of Invoices
Reported in GSTR1
Invoice Value in Range 18-Jul 18-Aug 18-Sep
% of total
(Sep)
Less than Re. 1/- 144522 91303 73944 0.04%
Rs. 1 to 5000 70659111 67050677 84562050 40.77%
Rs. 5K to 10K 18721798 18618066 25376274 12.23%
Rs. 10K to 20 K 18412303 18691949 25240434 12.17%
Rs. 20K to 50 K 23763639 24782813 33330404 16.07%
Rs. 50 K to 70 K 6420343 6740614 8225155 3.97%
Rs. 70 K to 1 Lakh 6124660 6328925 7751131 3.74%
Rs. 1 Lakh to 2 Lakh 8111953 8428748 9561009 4.61%
Rs. 2 Lakh to Rs. 5 Lakh 6685842 7058084 7567706 3.65%
Rs. 5 Lakh to 10 Lakh 2934701 3153725 3214941 1.55%
Rs. 10 Lakh to 50 Lakh 2120413 2344974 2324978 1.12%
Rs. 50 Lakh to Rs. 1
Crore 115510 126537 120112 0.06%
Above Rs. 1 Crore 77440 86014 85435 0.04%
TOTAL 164292235 163502429 207433573 100.00%
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Objectives of e-Invoice
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Better Tax Payer Services
One Time Reporting, Reconciliation
IRN > GSTR1 > GSTR3B
Generation of e-Way Bill
Reduction In Tax Evasion
Efficiency in Tax Administration
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Advantages of e Invoice
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Features of e-Invoice
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Unique Invoice Reference Number (IRN)
QR Code
Digitally Signed (e-Sign)
Generated from Invoice Registration Portal(IRP), through JSON file
Note: Only One IRN for each Invoice of the Supplier.
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IRN Contains
• Unique Invoice Reference Number (IRN)
• 64 Character hash algorithm
1. GSTIN of Seller
2. Invoice Number
3. Document Type
4. Financial Year
• Ex: 35054cc24d97033afc24f49ec4444dbab81f542c555f9d30359dc75794e06bbe
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QR Code Consists of
1. GSTIN of Seller
2. GSTIN of Buyer
3. Invoice Number
4. Invoice Date
5. Invoice Value
6. Number of line items
7. HSN of Major Commodity as per value
8. Unique IRN(hash)]
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Applicability of e-Invoice
• Mandatory from 01.10.2020• Taxpayers Aggregate Turnover > 500 Crores• (Notification 61 dated 30thJuly, 2020)• In any preceding financial year from 2017-
18 onwards, Notification 70 dated 30.09.2020)
• Press Release dated 30.09.2020; Relaxation for the tax period October 2020, all the invoices mandated have to be uploaded before 2nd November,2020.
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Applicability of e-Invoice
Documents requiring e Invoice:
• B2B Invoices
• Export Invoices
• Credit Notes
• Debit Notes
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Non Applicability of e-Invoice
• B2C Transactions• Bill of Entry-Imports• SEZ Units• Insurer or a banking company or a financial institution,
including a non-banking financial company• Goods transport agency supplying services in relation
to transportation of goods by road in a goods carriage • Suppliers of passenger transportation service• e. Suppliers of services by way of admission to
exhibition of cinematograph films in multiplex screens
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Modes of Creation of e-Invoice
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Through GST System-Invoice Registration Portal(IRP)- Machine
to Machine
Small Taxpayers- through eight free accounting
software
API Based, SMS Based, Mobile app
based, offline tool(JSON file),
GSP Based & Web Based (Rarely)
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Offline Facility - Bulk Upload Tool
Taxpayer prepares and uploads the file containing multiple IRN requests and e-invoicing system will process each one of them and return the IRN for all as applicable
Direct API integration
This is direct method of taxpayer system requesting for IRN and e-invoicing system will return the IRN
API Integration through GSP
The taxpayer system will route the request for IRN through GSP and e-invoicing system will return IRN
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Present Modes of e-Invoice Generation
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Schematic Flow-IRN
IRN
Request
IRN request
received
IRN Generated
for all Invoices
Prepare Tax Invoice and
issue
Invoice Persisted (with IRN)
Receiver Accept/Reject
Taxpayer System/visibility
IRN System
Invoice Status
Updated
GST/E-Way Bill System
Generate GSTR-1/GSTR-3B
…..
Invoice Persisted (BI
Purpose)Generate e-Way
Bill
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IRN Request
• IRN• EWB No (if
requested)• Signed QR Code• Signed Invoice
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E-Invoicing System
IRN Request & Response
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e-Invoice, How it looks
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IRN generated on the portal can be cancelled within 24
hours
IRN cannot be cancelled, if valid E-Way Bill exists for
that IRN
Once e-Invoice (IRN) is cancelled, then one more
IRN cannot be generated on same Invoice Number
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Cancellation of IRN
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❖Verify e-Invoice by uploading signed JSON in portal
❖Verify QR Code using App which can be downloaded from the portal
Tools in Public Domain
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Verify Signed Invoice
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QR Code Verify App
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Challenges In Digitization
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Uniformity of DataInfrastructure Support
Behavioral Changes of Taxpayers
Outreach Activities
Adoption of IEC Measures
Relationship with Stake Holders
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Important Links
•http://einvoice1.gst.gov.in•https://einv-apisandbox.nic.in• [email protected]• [email protected]•Feedback & Suggestions:• [email protected]
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GST-e Invoicing
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Thank You
“Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing or learning to do”.
………Pele
Final Thought