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E-Invoicing has become the hottest topic of discussion for all businesses and taxpayers. Beginning 1st Jan 2020, this game-changing, e-invoicing mechanism will be implemented on a voluntary basis for companies with a turnover above 500 crores from 1st Jan 2020 and Companies with turnover above 100 crores from 1st February 2020. The new E-invoicing system is going to be helpful in avoiding reconciliation errors and preventing fake invoicing rackets.
Though the GST council has allowed the introduction of the e-invoicing mechanism in phases there are many questions around it that have left people in a state of confusion. Cygnet GSP recently conducted a webinar to explain the facets of this e-invoicing mechanism. The following are some of the questions and answers excerpted from the webinar interaction.
Q. Are All ERP systems ready for this change?
A. Not yet. It will take some time for the ERP systems to be ready for this change.
Q. Does one have to generate the invoices in the Government portal itself?
A. No, there is no need to generate invoices on the Government portal. The taxpayer can transfer the information on the invoices in the standard schema published by the government.
Q. What if one wants to cancel the invoice already uploaded on the IRP, how can one go about it?
A. Once an invoice is uploaded on the IRP it cannot be edited, but it can be canceled within 24 hrs of the upload. After 24 hrs, the invoice information can be accessed from the GSTN portal.
Q. Will the IRP portal only accept and share data in the JSON file?
A. Yes, the IRP portal will only be accepting and sharing all data only in JSON format.
Q. Does Cygnet have any solution or offering to ease the work?
A. Yes, Cygnet has multiple offerings that will make the e-invoicing easy for every customer.
Q. What is Cygnet’s Offering?
A. Cygnet’s first offering is the Cygnet e-Invoicing Application. This e-Invoicing App will allow you to upload data in any format, be it XLS, CSV or the JSON format. The advantage of this app is the businesses don’t require to make schema changes at their end, Cygnet system will work as the translator between the schema of the data uploaded and the schema on the government portal. It will transfer, translate and upload the data. It will also validate the invoices with the exhaustive validation system.
Q. Do we have to upload all the documents on the portal?
Yes, all documents such as Invoice, Credit Notes, Debit Notes, needs to be uploaded on the IRN portal.
Q. Does the IRP have to return the PDF copy with the digital signature and QR code?
A. The IRP will not be returning a PDF copy at all, it will only return a JSON file which will be digitally signed and QR Code in the JSON format. But this must be consumed, take the QR code in the invoice and print the PDF, which will be generated by the seller and not by the NIC or IRP.
Q. What about the export invoices?
A. The export invoices will also be a part of the IRN system.
Q. Invoice modified in IRP also stand modified in GST & e-way?
A. The IRP portal does not allow any kind of modifications. You can only upload invoices there. To modify you need to go the GSTN or e-way bill portal. The IRP portal will only consume JSON files.
Q. Will pushing and pulling of data for IRN be the same as the e-way bill?
A. Yes, it will be quite similar, as it is being developed by NIC, but NIC returns the e-way bill information. But here it will only get back with the JSON and the IRN, the digital signature, and the QR code.
Q. Is there a time period specified for raising an invoice, can it be raised subsequently?
A. The government has already said that an invoice will not be considered a legal document if it has not been registered through IRP on the GST system. Hence, it is important that the invoices are uploaded on the IRP in real-time.
Q. Does the vehicle have to carry an invoice with IRN number?
A. Yes, because only then will it be considered a legal document. It should have both IRN and the QR code.
Q. Can one accept their vendor invoice with IRN details?
A. Yes, one can accept, in fact, that should be the process to accept vendor invoice through IRN details.
Q. Can the IRN number be printed on the invoice while printing?
A. Yes, the IRN number has to be printed on the invoice.
Q. Is it mandatory that the data from client ERP will pass through e-invoicing application and then to the IRP or the data from SAP can be sent directly to IRP?
A. Data from SAP can be sent directly to IRP, but currently, it must go through GSP.
Q. Will there be two extractors needed for IRN and E-way bill?
A. No, there is no requirement for two separate extractors, but one can be modified in a fashion by which both can be integrated. In fact, the same extractor can work for all.
Q. While creating an e-invoice from the portal can we add the company’s logo?
A. We are not creating any invoice through the portal, there is no portal that generates e-invoices. Whatever methods you are using to print the logo on the invoices will remain the same. And for the small vendors who don’t have an accounting software can use FACE an accounting software approved by GSTN for your accounting needs and for generating your IRN.
E-invoicing is a challenge for many today, so it is recommended to start now. If you have any queries related to e-invoicing, then you can connect with our team on email@example.com. Soon Cygnet will be giving demos on e-invoicing, which will give you a better understanding of the same.
Stay Tuned for more updates!