GST

Know truth about the E-Invoice through ‘Myth vs Reality’

Myth – I would need to issue invoices through the GST portal.

Reality– No. You would continue to issue invoice the way you have been doing it. You are just required to generate the Invoice Reference Number (IRN) for each invoice issued through your billing software ERP or accounting software.

Myth – The generation of IRN might take several minutes and that would affect my business.

Reality– The Invoice Registration Portal (IRP) would assign the IRN in sub too milliseconds, More than one IRPs will be made operational.

Myth – E-Invoice would need to be issued for all the transactions.

Reality– Issuance of e-invoice is mandatory only for B2B transactions and exports at this stage.

Myth – If I am not using a billing software, ERP or accounting software, I can’t issue e-invoice.

Reality– 8 free billing and accounting software have been provided free of cost by GSTN for taxpayers having turnover up to 1.5 crores. These can be used for issuing e-invoices.

Myth – E-invoicing will add one more CST compliance.

Reality– On the Contrary E-invoice and its reporting will reduce compliance. Reporting to GST will lead to the auto-creation of ANX-1 and ANX-2 as well as E-Way Bill if asked.

Myth – The IRN generated by the IRP would he the invoice number.

Reality– No. it wall just be a reference number. The invoice number will be the one that you have entered in the invoice.

Myth – I would be required to make major changes in the billing software, ERP or accounting software to become e-invoice complaint

Reality– No major change would be required at your end. However, the software providers would require to introduce small changes at the backend.

Myth – There will be separate invoice formats for different businesses.

Reality– Invoice format will be the same for all the categories of taxpayer Invoice schema released by GSTIN has mandatory and optional fields that need to be filled depending upon the nature of business.

 

TaxClue Team

Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building. TaxClue is a team of young professionals. We started in December 2016 with the mission of knowledge sharing. TaxClue would like to hear your valuable suggestion. Please write to our editorial team at [email protected]

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