Equipping Modern Enterprises with Powerful GST & E-Way Bill Solutions

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  • GST Filing & Reconciliation
  • E-Way Bill Automation
  • GSTIN Search & E-Way Bill APIs

Implication for ERP/Accounting Software Providers

Expectation from A/C and Billing S/W Companies

Phase-1

  • Understanding of e-invoice schema
  • Make necessary changes in the software to generate file in JSON schema as published
    • Develop ReusablePlugins
  • Enable customer to send JSON file to the IRP using
  • Receive digitally signed e-invoice with QR code and make available to user in readable format

Phase-2

  • Send the digitally signed e-invoice to buyer in whose name the invoice was (P2P)
  • Provide Inbox view of received invoices (sent by suppliers of the user)for
      • Downloading in user readable format and take it to inventory
    • GRNcreation
    • Matching with hisPO
    • Add to inventory when goods

Phase-3

  • Accept/reject the e-invoice and send it to GST System

E-Invoice P2P Messaging Framework

  • Counterparty Communication of e-Invoice
    • Buyer to receive a copy in a standard format
    • Clear identification of source and destination of e-invoice (RESTful APIs)
    • The Header to have all necessary info for e-invoice routing
  • Security Measures
    • Digitally authenticated e-Invoice (digital signatures with HashValidation)
    • Authenticated API Integration andCommunication
  • Ease of Integration & Business Operation
    • Open standard format for easy integration with TaxpayerERPs
    • Option for small taxpayers to have an Inbox like feature to receive and send invoices (After digitally signing)
    • Offline tools for registration and management of e-Invoice
    • Billing and Accounting service providers to provide interfaces to receive the invoices for a taxpayer
    • The invoices shall be available in Inbox for download and management

E-Invoice Messaging Protocol

  • JSON format to be used for e-invoice and header information
  • Header is Sacrosanct and is maintained for e-InvoiceLifecycle
  • Primary Elements surrounding JSON Schema format(Header)
      • Version: Version of Schema for backward compatibility
      • Payload Identifier: Unique Name to payload. Also be used for handling multi-part data-streams
      • FromAddress: <GSTIN>@einvoice (@einvoice is lookup service will return a URL to POST the payload with headers. Lookup Service will be hosted by GSTN and endpoint will be known (RESTFull service))
      • To Address: <GSTIN>@einvoice (Same as Above)
      • Content Type: Only e-Invoice at this moment, can be used as message carrier in future versions)
      • Content Encoding: Nil, HMAC(Base64)
      • Invoice count: Defining the number of invoices carried
      • Signed: Yes/No (whether payload is signed)

End Point Resolution and Encryption (SIMPoL)

SIMPoL

 

E-Invoice Messaging Flow (SIMPoL)

E-Invoice Messaging Flow

E-Invoice Messaging Flow (SIMPoL)

E-Invoice Messaging Flow

 

Frequently asked questions

  1. Will businesses now be required to generate e-invoices on the GST portal or thee- invoice portal or the IRN portal?
  2. Who is required to make changes in software to generate e-invoice payload (what will be reported to IRP)?
  3. How long will the e-invoice generated would be available at the Government portal?
  4. Will it be possible to add transporter details aswell?
  5. There are certain fields today which are optional and some  How are these to be used?
  6. Why is number of line items limited to 250 in thee-invoice?
  7. Whether e-invoice generated is also required to be signed again by the taxpayer?
  8. Will it be possible for bulk uploading of invoices for e-invoicing aswell?
  9. Will there be a time limit for e-invoice uploading for registration?
  10. Cancellation or amendment of Invoice
  11. Will it be possible to allow invoices that are registered on invoice registration system/portal to be downloaded and/or saved on handheld devices?
  12. Will it be possible to print thee-invoice?
  13. whether exports would require e-invoice compliance
  14. Will the industry be provided sufficient time for preparation?
  15. What validations would be put by the invoice registration portal(IRP)?
  16. Can e-invoices be created for B2C supplies also?
  17. E-Commerce operators should be enabled to create e-invoices on behalf of the vendors just like transporters are able to create e-way bills for their
  18. Can IRP reject the submitted invoice?
  19. Will the IRP return both signed JSON and signed PDF? Or just JSON? NO PDF.
  20. Do we need to print IRN on the invoice?

Other Points

  • Discussion
    • Schema
    • Workflow
    • Standard and Protocols
    • Any other point
  • Volunteers (from accounting/billing community) for PoC

Electronic Invoice: Steps Taken and Timelines

Steps Status/Timeline
Sharing of approved e-invoice schema and concept with Billing and Accounting eco-system (GSP, ASP and eight Accounting and Billing software providers providing free basic accounting/billing software). Completed in October
Rollout
On voluntary basis for taxpayers having turnover above Rs 500 Crores. from 1st Jan 2020
On voluntary basis for taxpayers having turnover above Rs 100 Crores. from 1st Feb 2020
Based on lessons learnt, mandatory rollout for taxpayers having turnover above Rs 100 Crores from 1st April 2020
Others: Gradual reduction of Turnover limit Based on experience
Development of software by NIC:

E-invoice will be rolled out on e-way bill hardware to start with.

On track
Workshop with accounting/billing Companies and Trade/Industry Bodies Planned in 7 Cities in December 2019

Number of B2B Invoices Generated: Tech Feasibility of Generating Unique IRN

INVOICE COUNT BASED ON EXTRAPOLATED TURNOVER OF 2017-18
EXTRA POLATED TURNOVER = ACTUAL TURNOVER *12/NO. OF RETURN FILED
 

Count of Taxpayers who have uplaoded invoice in GSTR-1

 

Turnover Slab based on FY 2017-18

No. of invoices Reported in GSTR-1 by such

taxpayers

Average count of invoices based on 3rd

month data

Average count of invoices per month for

the qtr

Jul-18 Aug-18 Sep-18
 

988128

Upto 5 Lakhs (leaving aside

NIL filers)

 

257464

 

253720

 

2087261

 

2.11

 

0.88

629148 5 to 10 Lakhs 318412 306426 2821277 4.48 1.83
855459 10 to 20 Lakhs 760286 739343 6089012 7.12 2.96
580947 20 to 30 Lakhs 725116 697483 5926107 10.20 4.22
421528 30 to 40 Lakhs 732359 699671 5620924 13.33 5.58
324951 40 to 50 Lakhs 724665 688682 5167577 15.90 6.75
474029 50 to 70 Lakhs 1395523 1332789 9349826 19.72 8.49
466518 70 Lakh to 1 Crore 2197731 2107764 11730031 25.14 11.46
456516 1 Crore to 1.5 Crores 4629759 4507010 13291155 29.11 16.38
267233 1.5 Crores to 2 Crores 5893588 5816727 7125289 26.66 23.49
308246 2 Crores to 3 Crores 10269467 10187235 9630594 31.24 32.54
177922 3 Crores to 4 Crores 8109655 8053553 7289457 40.97 43.94
116253 4 Crores to 5 Crores 6507297 6396841 5746204 49.43 53.48
195031 5 Crores to 8 Crores 13907172 13776416 12167017 62.39 68.11
72551 8 Crores to 10 Crores 6672446 6602472 5811494 80.10 87.69
155588 10 Crores to 20 Crores 18592090 18411784 16069295 103.28 113.70
97816 20 Crores to 50 Crores 18338479 18443577 16121505 164.81 180.28
33982 50 Crores to 100 Crores 11174507 11091740 1,00,28,577 295.11 316.78
28118 100 Crores to 500 Crores 20603244 21306401 1,91,86,222 682.35 724.28
5941 Above 500 Crores 30244245 29517488 2,99,47,401 5040.80 5033.34
6655905 GRAND TOTAL 162053505 160937122 201206225 30.23 26.25

E-Invoice Messaging Flow (Standard Invoice Messaging Protocol or SIMP)

E-Invoice Messaging Flow