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How to generate e-Invoice under GST?

E-invoicing is a process through which a taxpayer can authenticate all the B2B invoices. It helps in validating whether the invoice generated can be used to file GST Returns or e-way bills. It is not easy to fetch all the data directly to the GST portal from GST Software as the invoices generated via different GST software can have a different format.

So, keeping this in mind the government introduced a standard format (Schema), using this schema all the GST software will now have to use the standard invoice format or schema that can be directly uploaded to the GST portal for authentication and validation.

In simple words, e-invoicing is a process through which the data can be easily exchanged between different GST software of different taxpayers.

Benefits of GST e-Invoicing System

Here are some of the benefits of GST e-Invoicing system

GST e-Invoicing system will ensure that some of the common fields of GST ANX-1 and GST ANX-2 form can be furnished directly after the authentication of the B2B invoices.

Moreover, e-Invoicing will also help in generating the e-Way Bill without any stretch as the PART-A will get auto-populated with the help of e-Invoice. The taxpayers just need to add the details of the transporter in the Part-B of e-Way Bill.

Reconciliation process will also improve under the new e-Invoicing system as the invoices uploaded by the suppliers can be directly authenticated by the buyers.

How to create GST E-Invoice?

Here is the step by step guide using which a taxpayer can easily generate an e-invoice:

Step 1: Invoice Creation

Under the new GST e-Invoicing system the supplier needs to create an invoice in the common format prescribed by the government via his/her GST software. In other words the invoice shall include all the important details mentioned in the invoice schema. Post complying with the prescribed format the supplier needs to generate the JSON of all the B2B invoice.

Step 2: IRN Generation

Once the invoice is generated it shall be uploaded on the IRN (Invoice Reference Portal). After uploading the B2B invoice on the IRP a unique invoice reference number (IRN) will get generated containing the standard hash generation algorithm.

Step 3: Invoice Uploading

Now, the seller will upload JSON for each of the invoices, along with IRN, to the Invoice Registration Portal, either directly or through third-party software.

Step 4: Authentication

Post generating the Invoice reference number, the hash generation algorithm will get authenticated via the central registry of GST.

Step 5: QR Code Generation and Digital Signing

After the IRN on the invoice get successfully authenticated, the QR code along with digital sign on the JSON format of invoice will be added.

Note: The Hash algorithm code generated earlier will become the unique identity of that e-Invoice for the It will be the unique identity of that e-invoice for that particular financial year (FY).

Step 6: Data Sharing

Once the all the above processes completes the invoice level data will be shared with the GST Portal and the e-Way Bill Portal.

Step 7: E-invoice Downloading

Now, the e-Invoice is ready for the download through the GST portal and the same will be sent to the seller, buyer on their registered e-Mail ID.