{"id":3577,"date":"2020-10-01T16:37:48","date_gmt":"2020-10-01T11:07:48","guid":{"rendered":"https:\/\/razorpay.com\/learn\/?p=3577"},"modified":"2024-09-17T13:43:49","modified_gmt":"2024-09-17T08:13:49","slug":"gst-e-invoicing-system","status":"publish","type":"post","link":"https:\/\/razorpay.com\/learn\/gst-e-invoicing-system\/","title":{"rendered":"GST e-Invoicing Mandatory from October 1st 2020"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The 37th GST Council meeting recommended the introduction of e-invoicing under <a href=\"https:\/\/razorpay.com\/learn\/gst-goods-and-services-tax\/\">GST<\/a> in a phased manner. While the initial date was the 1st of April 2020 for its rollout, the government has notified a revised date for e-invoicing implementation i.e., the 1st of October 2020.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The new e-invoice system will revolutionise the way businesses interact with each other and will be another milestone in India&#8217;s journey to enhance the ease of doing business.\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d27d8ab9ac7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d27d8ab9ac7\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/learn\/gst-e-invoicing-system\/#What-is-e-invoicing-under-GST\" >What is e-invoicing under GST\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/learn\/gst-e-invoicing-system\/#Latest-update-on-GST-e-invoicing\" >Latest update on GST e-invoicing\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/learn\/gst-e-invoicing-system\/#Benefits-of-e-invoicing-under-GST\" >Benefits of e-invoicing under GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/learn\/gst-e-invoicing-system\/#Process-of-getting-a-GST-e-invoice\" >Process of getting a GST e-invoice\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/learn\/gst-e-invoicing-system\/#Implications-on-businesses\" >Implications on businesses\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/learn\/gst-e-invoicing-system\/#Create-GST-compliant-invoices-with-Razorpay\" >Create GST compliant invoices with Razorpay<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-e-invoicing-under-GST\"><\/span><span style=\"font-weight: 400;\">What is e-invoicing under GST\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">GST e-invoicing is a system that electronically authenticates B2B invoices through the Goods &amp; Services Network (GSTN). Under the system, an identification reference number (IRN) will be issued against every invoice by the Invoice Registration Portal (IRP).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This system is not built to prepare and generate invoices on the GST portal. Instead, it involves submitting already generated invoices on a common e-invoice portal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Information from the invoices will be transferred from IRP to the GST portal in real-time. This will eliminate the need for manual inputs while filing GST returns.\u00a0\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Latest-update-on-GST-e-invoicing\"><\/span><span style=\"font-weight: 400;\">Latest update on GST e-invoicing\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Mandatory implementation of e-invoicing begins from the 1st of October 2020 for the taxpayers with an aggregate turnover of more than Rs 500 crore. Here, the aggregate turnover means the turnover of all GSTINs under a PAN across India.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The following persons are exempted from issuing e-invoices:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Special economic zone (SEZ) units<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A banking company or a financial institution (including NBFCs) or an insurance company<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/razorpay.com\/learn\/goods-transport-agency-under-gst\/\">Goods transport agency<\/a>\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Suppliers of passenger transport services<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Supplier of services by way of admission to the exhibition of cinematograph films in multiplex screens<\/span><\/li>\n<\/ul>\n<p><span data-sheets-value=\"{&quot;1&quot;:2,&quot;2&quot;:&quot;You can do an instant GST number check using the Razorpay Number Search Tool, which helps you perform verification and authentication of a GST number for free.&quot;}\" data-sheets-userformat=\"{&quot;2&quot;:4520,&quot;6&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;8&quot;:{&quot;1&quot;:[{&quot;1&quot;:2,&quot;2&quot;:0,&quot;5&quot;:{&quot;1&quot;:2,&quot;2&quot;:0}},{&quot;1&quot;:0,&quot;2&quot;:0,&quot;3&quot;:3},{&quot;1&quot;:1,&quot;2&quot;:0,&quot;4&quot;:1}]},&quot;10&quot;:1,&quot;11&quot;:4,&quot;15&quot;:&quot;Muli&quot;}\">You can do an instant <a href=\"https:\/\/razorpay.com\/gst-number-search\/\">GST number check<\/a> using the Razorpay Number Search Tool, which helps you perform verification and authentication of a GST number for free.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits-of-e-invoicing-under-GST\"><\/span><span style=\"font-weight: 400;\">Benefits of e-invoicing under GST<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Technological advancements, increased internet penetration with the availability of computer systems at economical prices will make <\/span><b>e-invoice<\/b><span style=\"font-weight: 400;\"> &#8211;<\/span> <span style=\"font-weight: 400;\">a popular choice for businesses.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">e-Invoicing has many advantages for businesses in India.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Reporting B2B invoices in the e-invoice form will reduce reporting of the same in multiple forms like GSTR-1, <a href=\"https:\/\/razorpay.com\/learn\/gst-e-invoicing-system\/\">e-way bill<\/a>, etc<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">No tax evasion as a complete trail of B2B invoices will be available<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">System-level reconciliation of input credit and output tax<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Auto-population of invoice details into GST return and other forms (like an e-way bill)<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Mitigation of fraud invoices\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Reduction in processing costs and disputes\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Improvement in payment cycles, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Advancement in overall business efficiency<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Process-of-getting-a-GST-e-invoice\"><\/span><span style=\"font-weight: 400;\">Process of getting a GST e-invoice\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">&#8216;e-Invoicing under GST&#8217; does not mean invoice generation by a government portal. Taxpayers will continue to create GST invoices through their preferred method. These invoices will be uploaded to <\/span><a href=\"https:\/\/einvoice1.gst.gov.in\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">IRP<\/span><\/a><span style=\"font-weight: 400;\">. This portal will generate a unique IRN, digitally sign it, add a QR code, and return the invoice.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\"><img decoding=\"async\" class=\"aligncenter size-full wp-image-3578\" src=\"https:\/\/razorpay.com\/learn-content\/uploads\/2020\/10\/e-invoice-overview.jpg\" alt=\"GST e-invoicing\" width=\"781\" height=\"391\" srcset=\"https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2020\/10\/e-invoice-overview.jpg 781w, https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2020\/10\/e-invoice-overview-300x150.jpg 300w, https:\/\/d6xcmfyh68wv8.cloudfront.net\/learn-content\/uploads\/2020\/10\/e-invoice-overview-768x384.jpg 768w\" sizes=\"(max-width: 781px) 100vw, 781px\" \/>The returned invoice can be downloaded as a PDF and print it as a paper invoice for future reference.\u00a0\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Implications-on-businesses\"><\/span><span style=\"font-weight: 400;\">Implications on businesses<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Businesses will continue to create invoices as they are doing now. The new system won&#8217;t entail many changes to present methods. Software providers in their respective software will make required adjustments due to the e-invoicing requirement (i.e., to allow the reporting of invoices to IRP and to get IRN). They need to get the latest versions of the software.<\/span><\/p>\n<p>If you&#8217;re wondering how to include profit margins and to get real-time GST inclusive and exclusive rates you can check out our <a href=\"https:\/\/razorpay.com\/gst-calculator\/\">free GST calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Create-GST-compliant-invoices-with-Razorpay\"><\/span><span style=\"font-weight: 400;\">Create GST compliant invoices with Razorpay<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Businesses can create GST invoices with Razorpay and save a time of time &amp; effort. The software is easy-to-use and generates comprehensive, detailed invoices in a few clicks.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Using <\/span><a href=\"https:\/\/razorpay.com\/blog\/razorpay-gst-compliant-invoices\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Razorpay Invoices<\/span><\/a><span style=\"font-weight: 400;\">, businesses interact with a highly intuitive dashboard where GST invoices are created, shared, and updated whenever needed.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">All they need to do is log in to the dashboard and click on &#8216;Create Invoices.&#8217; On the next page, they can add customers (or select an existing one) and enter all the customers&#8217; details.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These invoices can be saved as standard templates so that businesses don&#8217;t keep punching in the same details repeatedly. This further saves time and manpower.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since the GST e-invoicing system has been implemented, businesses can create invoices via Razorpay Invoices, upload them on IRP, and generate unique IRNs for the invoices. Hurry up!<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/razorpay.com\/invoices\/\">Create GST Invoices Now<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Mandatory implementation of GST e-invoicing begins from the 1st of October 2020 for the taxpayers with an aggregate turnover of more than Rs 500 crore.<\/p>\n","protected":false},"author":151156469,"featured_media":3581,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3435],"tags":[],"class_list":{"0":"post-3577","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gst-tax-government"},"_links":{"self":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/users\/151156469"}],"replies":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/comments?post=3577"}],"version-history":[{"count":11,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3577\/revisions"}],"predecessor-version":[{"id":13367,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/posts\/3577\/revisions\/13367"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media\/3581"}],"wp:attachment":[{"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/media?parent=3577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/categories?post=3577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/learn.razorpay.in\/learn\/wp-json\/wp\/v2\/tags?post=3577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}