India e-invoicing: Mandates to be expanded
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For Indian companies with an annual turnover of Rs. 100 crore or more, mandatory India e-invoicing will be implemented in India starting 1 January 2021. 100 crore. Companies need to be prepared quickly and should use solutions that make it easy to issue and receive e-invoices.
Ajay Bhushan Panday, that time Indian Finance Secretary, announced earlier in October 2020 that all businesses with a turnover of more than 100 crore will be able to issue e-invoices through the IRP. 12 million EUR) from 1 January 2021. The government's goal is to require e-invoicing for all B2B transactions beginning 1 April 2021. All transactions must be done via the GST Invoice Registration Portal, (IRP), when India implements B2B e invoicing on April 20, 2021.
The CBIC confirmed on November 10th that taxpayers with a total turnover exceeding Rs. 100 crore would be subject to the e-invoicing mandate. The e-invoicing mandate will need to be implemented starting in January 2021.
Current mandate covers Indian businesses with an annual turnover of more than 500 million. Exempt from the mandatory issuing e-invoices are banks, telecom service providers, insurance companies and armed forces.
Submission requirements
Submission requirements
The regulations require that e-invoices be sent to the IRP in format. An e-signature can be included in the document, but it is not necessary. After the submission of the electronic document, the IRP validates the invoice and sends the supplier a response message. The following parameters are used to validate the document:
Complete all fields that are required
Validity of the supplier GSTIN (Goods and Services Tax Identification No.
GSTIN Validity
Validity of the invoice number and financial years;
Whether the invoice is already in the GST system.
If the IRP responds positively, the invoice will be digitally signed and assigned an IRP number. The QR code is generated to allow the buyer and supplier to verify the authenticity of the electronic invoice and prove that it has been registered in GST. The IRP makes the document accessible to both parties via the GST portal.
An error message detailing the reason behind rejection is sent if the response is not positive.
Distribution of e-invoices
Distribution of e-invoices
The supplier must then distribute the e document to the buyer after completing the above steps. The distribution of the e-document between trading parties is not controlled. However, both parties can agree on the method of distribution. Exempt businesses aren't required to accept or process JSON E-documents. Therefore, it is recommended that suppliers can either create PDF invoices or print paper invoices to be distributed to these businesses.
Storecove’s Solution - How to be and remain compliant
Storecove’s Solution - How to be and remain compliant
Storecove offers a proven compliance solution to businesses that are affected by India e-invoicing.
Issue with Storecove:
Storecove will convert the file to mandatory JSON format after the file has been generated in the supplier format.
Storecove submits file to the IRP. This is the mandated platform for clearing.
Storecove receives a reply from the IRP with a receipt that includes IRN, QR code, and IRP electronic signature.
Storecove sends the supplier the document in the supplier format with IRN, QR code, and e-signature.
The buyer receives the documents in the agreed format. This includes but is not limited to JSON or PDF.
Storecove can archive all relevant documents at no additional charge.
Receiving using Storecove
Receiving using Storecove
Storecove will convert the file to the preferred format of the buyer after it has been received in JSON, or another agreed upon format. Storecove can also perform content validation and enrichment as required.
Storecove sends the document in both buyer and mandatory formats.
Storecove can archive all relevant documents at no additional charge.
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