Govt. mandated companies of more than Rs.500 crore revenue to start generating e-invoices from 1st October 2020. As per the phase-wise expansion, companies with more than Rs.100 crore revenue began generating e-Invoices from 1st January 2021. With the idea to cover more and more firms, companies with the turnover more than Rs. 50 crores were mandated to issue e-Invoices from 1st April 2021. While the government successfully covered around 2.40 Lakh businesses across India, it also wanted to include of the medium and small companies.
And thus, as per the recent announcement by Ministry of Finance, e-Invoicing under GST is mandated for B2B and export transactions for the taxable persons having annual turnover in excess of ₹20 crores (down from the earlier limit of ₹50 crores) in any FY from 2017-18 and onwards vide Notification 1/2022 – Central Tax, with effect from 1st April 2022.
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What does it mean for the government? |
What does it mean for the small and mid-sized business? |
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Flow of e-Invoicing process in India
The steps to be followed for e-Invoicing in India is shown below:
Will SMBs face any roadblock in generating e-Invoices?
Small businesses may face challenges in generating valid e-Invoices.
- Complex tax ecosystem, multiple legacy systems & time-consuming manual processes can cause errors
- Data storage and data management processes lead to various types of inaccuracies
- Bifurcating B2B and B2C invoices is a tedious task
Technology backup is essential to adapt to such a transformation. Cygnet Tax Tech can definitely help small & medium businesses in generating GST e-Invoices and e-Way bill and stay compliant with e-Invoicing solutions.
e-Invoicing solution suite for small and medium businesses
- Integrate the existing accounting software with Cygnet e-Invoicing Tool to be e-Invoicing & e-Way Bill compliant
- Utilize the Tally connector using Cygnet Enriched APIs with the existing Tally software to start the e-Invoicing journey before 1st April 2022
- Leverage GSTN approved accounting system Cygnet FACE to generate e-Invoices & e-Way bill in bulk
Here are some of the important features of the Cygnet Tax Tech e-Invoicing suite
Cygnet Invoicing Tool
Standalone tool for ERPs and accounting systems with API limitations and can’t be modified with recent rules. It is the best fit for ERP providers, Chartered Accountants, Tax consultants
- Seamless data extraction, conversion, and mapping
- Easy IRP registration
- Bulk e-Invoice & e-Way Bill generation
- Generate invoice using Sale module
- Auto-generation using Drag n Drop, excel template in Local /SFTP /S3
- Data field mapping
- Save invoice print as PDF
- Auto e-Mail e-Invoices to customers
- Digitally sign invoice copies in bulk
Tally Connectors
With Tally connector using Cygnet Enriched APIs, you can generate e-Invoices and e-Way Bills.
- End-to-end integration with Tally, SAP, Oracle, and ERP systems
- Automation with Enriched APIs
- Bulk e-Invoice & e-Way Bill generation
- Backward integration support for IRN and QR code
- Inbuilt configuration within Tally for e-Invoicing printing
- Archive e-Invoices in Tally
Best fit for ERP & accounting/billing solutions, Tax consultants/heads, Tally customers, and more.
GSP Passthrough API
Integrate Govt. APIs for e-Invoice & e-Way Bill to leverage e-Invoice generation module is within ERP
- End-to-end integration via Passthrough APIs
- Seamless automation
- e-Invoice & e-Way Bill generation
Enriched API
Integrate Cygnet e-Invoice and related features to ERPs using Enriched APIs
- e-Invoice & e-Way Bill generation with ERP
- e-Invoice PDF download
- Bulk data import
- Pull or push (call back) response facility
- Validation checks before pushing data to NIC
Cygnet FACE
Cygnet FACE GST Accounting software will help you generate e-Invoice and e-Way Bill in bulk.
- Integrated e-Invoicing & e-Way Bill
- File returns directly from the platform
- Automated journal voucher
- Document attachment feature
- Multi-currency accounting
- Customizable dashboard
- Drill down feature in every report
Best fit for MSME, Chartered Accountants, Tax Advisory/heads, and more
Why Cygnet Tax Tech e-Invoicing suit?
Cygnet Tax Tech e-Invoicing suit offers a lot of benefits to medium and small businesses in India. Some of them are listed below.
- e-Invoice management: The solution allows seamless creation, cancelation, and management of e-Invoice & e-Way Bills along with a 360-degree audit trail of data imports & flows
- Comprehensive data validations: The solution enable GSTIN, HSN, PoS & Tax amount validations, and document validations – invoice number, CDN, amendments, export data, and more
- Integrated with GST and e-Way Bill: It also allows single data import for e-Invoice, GST, and e-Way Bill and 3-way reconciliation between e-Invoice, GST, and e-Way bill
- Reliability And Availability: Tax Tech owns a data center with 99.98% uptime, offering 24×7 support from experienced Tax and technology professionals
- Privacy And Security: Cygnet Tax Tech offers ISO 27001, ISO 9001 & VAPT certifications
Frequently asked questions
1. What is e-Invoicing under GST?
Ans. As per Rule 48(4) of CGST Rules, notified class of registered persons have to prepare invoice by uploading specified particulars of invoice (in FORM GST INV-01) on Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN). After following above ‘e-Invoicing’ process, the invoice copy containing inter alia, the IRN (with QR Code) issued by the notified supplier to buyer is commonly referred to as ‘e-Invoice’ in GST. Because of the standard e-Invoice schema (INV-01), ‘e-Invoicing’ facilitates the exchange of the invoice document (structured invoice data) between a supplier and a buyer in an integrated electronic format. Please note that ‘e-Invoice’ in ‘e-Invoicing’ doesn’t mean a generation of invoice by a Government portal. Read more.
2. How is ‘e-invoicing’ different from existing system?
Ans. There is no significant difference. Taxpayers will continue to create their GST invoices on their own accounting/billing/ERP systems. These invoices will now be reported to ‘Invoice Registration Portal (IRP)’. On reporting, IRP returns the e-Invoice with a unique ‘Invoice Reference Number (IRN)’ after digitally signing the e-Invoice and adding a QR Code. Then, the invoice can be issued to the receiver (along with QR Code). A GST invoice will be valid only with a valid IRN.
3. Is bulk uploading of e-Invoices to IRP is possible?
Ans. Yes, it is possible. The taxpayer can bulk upload the e-Invoices of JSON payloads through connectors and APIs.
4. In what cases IRP rejects the invoices submitted?
Ans. IRP checks the authenticity of the GSTIN of both seller & buyer and duplication of the invoice. If the GSTIN is not found or a bogus invoice is submitted, IRP will reject the invoice and return it back with relevant error codes.
5. How turnover of 20 cr is to be computed?
Ans. Aggregate turnover must be computed as per Section 2(6) of the CGST Act.
Section 2(6): “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;
6. Whether or not turnover of only 21-22 or all previous years is to be considered?
Ans. The registered person will be required to generate e-Invoice if turnover in any of the FY from 17-18 and onwards had exceeded Rs. 20 Crores.
7. Are taxpayers in 20Cr - 50cr required to generate dynamic QR code for B2C transactions?
Ans. No
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