Home USA News E-Invoicing and E-Way Bill under GST - Press Releases

E-Invoicing and E-Way Bill under GST – Press Releases


Noida, UP — By uploading an invoice in FORM GST INV-01 on Invoice Registration Portal (IRP) you receive an Invoice Reference Number (IRN). The copy of the invoice copy along with the IRN (with QR Code) is commonly referred to as ‘e-invoice’. This format facilitates the seamless exchange of invoices between accounting systems of suppliers and buyers in an integrated electronic form. 

Along with this, generation of e way bill on the common GST portal facilitates the transportation of goods from one place to another. EWay Bill is an Electronic bill generated for the movement of goods developed on the WayBill Portal. A GST registered individual cannot transport goods which are worth more than Rs. 50,000 (Single Invoice/statement/delivery challan) without an eway bill.

E-Invoicing

Nowadays, most businesses use e invoicing software or ERP Systems to generate invoices. These invoices (in JSON format) are reported to the ‘Invoice Registration Portal (IRP)’. IRP returns the digitally-signed invoice (in JSON) with a particular ‘Invoice Reference Number (IRN)’ and a QR Code. This system acts as an integration between a businesses accounting/ERP system and the e-invoice system of the Government which is carried out through APIs. 

The intention behind introducing e invoicing under GST is to reduce GST evasion. Every business has to set up a system in which they are needed to develop an ‘e-invoice’ for every transaction on the government’s GST portal. From 1st April, 2022, every business with a turnover of Rs. 20 crore and above is required to generate an e-invoice. 

To generate an e-invoice:

1. Reconfiguration of the ERP system is mandatory. 

2. E-invoice portal users can integrate their ERPs instantly via API or through GST Suvidha Provider’s API by permitting the IP address of their computer. Using the JSON export, IRN can then be generated in bulk on the e-invoice portal.

3. A standard invoice must then be submitted through the integrated ERP. In addition to the billing address, GSTIN, transaction amount, HSN Code , relevant GST rate, tax amount.  

4. Once the invoice is created, it is then uploaded to the IRP, either using the JSON file or a file upload service (app or GSP) or by immediate API calls. The IRP will manage invoicing and authentication. In addition to SMS-based and mobile app-based services, other modes interact with IRP.

5. A reference number (hash) will be constructed for the invoice after being validated for essential details as a portion of the IRP. GSTIN, invoice number, FY in YYYY-YY, and record type (INV/DN/CN) are the four factors that specify the generation of IRNs.

6. The invoice is digitally signed with a QR code with the supplier’s reference information and the invoice reference number (IRN). Alternatively, the supply seller will be informed of the generation of the electronic invoice by email (if the invoice determines this).

7. IRP dispatches GST returns to the GST portal after authentication. Further, the segments will be transmitted to the e-waybill portal, if required. 

HSN Code

HSN stands for Harmonized System of Nomenclature code, and it is mandatory to quote the HSN Code on both B2B and B2C tax invoices. It is a 6-digit code that classifies various products. India has been using HSN codes since 1986 to classify commodities for Customs and Central Excise. The HSN code contains 21 sections. These are divided into 99 chapters which are divided into 1244 sections. This system helps in making GST more straightforward and globally accepted. 

Eway Bill

An Eway bill is required to be generated when goods are moved in a vehicle/ conveyance of invoice value more than Rs. s50,000 (either through a separate Invoice or in aggregate of all invoices in a motorcar/transportation). However, it is mandatory to generate e-way bill even when the invoice value is less than Rs.50,000 in the following cases:

  • Interstate movement of goods in case of principal and job worker
  • Interstate transportation of handicraft goods

Documents required to generate an eway bill:

  • Invoice / Bill of Supply/ Challan
  • In case of roadways- Transporter ID or Motorcar number
  • Other cases: Transporter ID, Transport document number

In case a person who is required to generate an e-way bill fails to generate the same, he will be responsible for a penalty of Rs.10,000/- or amount of tax sought to be avoided, whichever is higher. Additionally, the goods will be prone to confiscation and the vehicle may also be liable to  seizure.

Company name : Masters India IT Solutions Pvt. Ltd. 

Email: [email protected]

Location: D 247/ 4A , Sector 63, Noida, Uttar Pradesh – 201301



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