All you Need to know About e-Invoice in GST.

Gst invoice

This article was published on: 3/01/20 10:12 AM

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Stepping into the new decade with GST E-Invoice Generation System on Portal.


January 2020, embarks the implementation of electronic invoicing by the Indian taxation Council. The world is changing and so is the time and age to global digitalisation of business processes. This article aims to update you about the details of GST Governance and amendments in tax laws.

E-Invoice-What is it?

GST E- Invoice is the initiation of the digital bill for goods and services, generated at the Government GST portal. The concept of GST E-Invoice generation system has been taken into consideration for the reduction in GST evasion. All business (within the determined limit of turnover) will be provided with a system through which it will be mandatory for them to generate ‘e-Invoice’ for every sale on the Government GST portal. Every business that are applicable for such an invoice will be allotted a unique number whenever an e-invoice is generated. They can match the identification number with the invoices which are written in the sales return and paid taxes for verification. All relevant information will be transferred from this portal to the GST portal and E-Way bill portal in real-time. There will be no need  of manual data entry while filing ANX-1/GST returns as well as generation of part A of the E-Way bill, as the information is passed directly by the IRP to GST portal. In short, it is a digital bill generated using a standardised (recognised) format, where the electronic data can be shared with others.


The GST council chaired by Union FM Nirmala Sitharam approved the standard of E-invoice in its 37th meeting held on 20th September 2019. However no exact date of implementation has been provided yet. Electronic invoicing is proposed to be implemented from 1st January 2020 in a phased manner by GSTN. Similar to the new GST return filing system, the E-Invoicing system will first be available on a trial basis or voluntary compliance.

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Some crucial benefits of E-Invoice are enlisted below:

  1. E-Invoice determines to bridge a major gap in data reconciliation under GST to reduce mismatch and inaccuracy.
  2. Interoperability is made possible as invoices created by one software can be read by another. 
  3. E-Invoice enables real-time tracking of invoices prepared by the supplier along with the faster availability of input tax credit. It will also reduce input tax credit verification issues. 
  4. The relevant details of the invoices would be auto-populated in the various returns, specially for generating the part A of E-Way bills. 
  5. There will be minimal need of data reconciliations between the books and GST returns files. 
  6. The time-taking tedious tax filing process will become automated and availability of genuine input tax credit will be faster.
  7. The tax authorities will not be required for audits since the information they require is available at transaction level. 
  8. Decrease in the number of frauds as generating  fake GST invoices will become impossible.

Where are you placed?


E-Invoicing under GST time period with business turnover conditions :


  1. Turnover 500 crore plus-voluntary and trial basis start from 1.1.2020.
  2. Turnover 100 crore plus-voluntary and trial basis start from 1.2.2020.

Note: GST E-invoicing is mandatory from 1st april 2020 for the above businesses. Those with below 100 crore turnover voluntary and trial basis start from 1.4.2020.

It will be mandatory for the businesses to generate the entire GST E-Invoice including all the value of sales. Expand ERP will be fully equipped with the software to make accounting and finances more methodical and organised for your business.

How to go about it?



The process of generating the GST E-invoice will be similar as the E-Way bill which is generated on the or the GST payments are done on the GSTN portal. The generation of invoices will be done by a centralised Government quarter which will replace the E-Way bill that is being generated for the movements of goods. 

  1.  At first,businesses need to  generate an electronic invoice on every sale on their respective ERP’s. The standard invoice format if prefixed by authorities for every business so that proper details are extracted. 
  2. The E-Invoice  generated needs to be reported to the Invoice Registration portal (IRP) of GST. 
  3. On the portal, the invoice reference number (IRN) will be authenticated and the invoice will be signed digitally. 
  4. Then a QR code will be created. The code contains all the vital information related to the invoices which will be redirected to the taxpayer who filed the invoices.

The IRP will send a copy of the signed invoices to the provided email id of the recipient of supply who is involved in the whole process.

What do  you need?

Documents required to be provided by the taxpayer while reporting the E-Invoices to IRP:

  1. Supplier side invoices
  2. Suppliers credit notes
  3. Recipients debit notes
  4. Other documents (according to the business)


  1. Every taxpayer will be allotted a unique IRN.The unique IRN will be based on the computation of hash of GSTIN of generator of document (invoice or credit note etc.) year and document number like invoice number. This hash will always be the same irrespective of the registrar who processes it. This hash will be the IRN.
  2. Once the invoice data is uploaded on the IRP which will also generate the hash in order to verify it and then it will be digitally signed  with the private key of the IRP. 
  3. IRP will also generate a QR code containing the unique IRN along with some important features of invoice and digital signature so that it can be verified on the central portal as well as by an offline app. This will be useful for tax officers checking the invoice on the go where the internet will not be available.  
  4. It will be easy for anyone to download the invoice from the offline app provided in the IRP and authenticate the QR code of the invoice offline and its basic details. However to see the whole invoice , one will have to connect to the portal and verify and see the details online. Only tax officers will be authorised to download the entire details of any invoice.


A technical group constituted by the GST council secretarial has drafted standards for E-Invoice after having industry consultation.  The E-Invoice schema and template, as approved by the GST council, are available at

Ways to adopt E-invoice:


There are multiple modes made available so that taxpayers can use at his or her convenience. For example

  1. Web based
  2. API based
  3. SMS based
  4. Mobile app based
  5. Offline tool based
  6. GSP based

How to use?


The GSTN, in partnership with the ICAI (institute of chartered accountants of india), has drafted an E-Invoice standard. This refers to PEPPOL(Pan European Public Procurement Online), which is based on the UBL (universal business language) standard. Certain features which are made mandatory under the GST law have also been marked as mandatory fields in the invoice draft. 


Countries that are already using E-Invoice in GST are South Korea, Brazil, Chile, Mexico, Canada, Norway, Sweden, Turkey, Italy, Denmark, Peru etc.

Some Pointers to remember:

  1. The maximum number of line items allowed per e-invoice is 100.
  2. It is not mandatory for a supplier to sign the e-invoice again.The IRP will digitally sign after validation.
  3. On the IRP,the data will be available only for 24 hours .
  4. An e-invoice cannot be cancelled partially,it has to be cancelled fully.
  5. All amendments to an e-invoice can be made only on the GST Portal.



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Union Budget Review 2012-2013 on SME, IT and GST


This article was published on: 17/03/12 12:00 AM

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In this Union Budget of 2012-13 no significant reforms are seen and the review is mixed. The deficit of 5.1% for 2013 is disappointing. The overall budget for the small and medium IT sector is not encouraging apart from some promises on GST, which affects the SME, IT and eCommerce.

The Service Tax has been raised from 10% to12%, which will definitely hit the demand for domestic software services and effect small and medium local IT players. The rise in the technology spending towards Unique identification authority of India (Aadhaar project) , LPG transparency portal is good news for IT but no special attention towards transparency inallocation of such project to smaller IT service providers. The budget is silent on the ambiguity on taxation on software product and services.

Overall rise in excise duty from 10% to 12% except textile may marginally benefit the textile industry but overall has dampen the spirits of the end consumer.

The India Opportunities Venture Fund of 5000 cr. sponsored by government through SIDBI will boost the MSME and is good news for start-ups and entrepreneurs.

The increase in funds (doubled from 1000 to2,500 cr. ) for National Skill Development Corporation will benefit the SME to employ more skilled labour. The generalising of income exemption and raising to Rs.2,00,000/- is a good move in this budget.

The introduction of GST by August 2012 will boost overall performance in the SME sector. The setting up of GST dispute settlement authority is a good move.  The common GST Network (GSTN) setup for filing returns will streamline tax functions from SME.  The multiple taxpoints will be eliminated and uniformity of tax will give SME a better workspace. The compliance process in the complete supply chain will become simpler. Uniformity across the country will help Chain stores across different statesand also simplify eCommerce and eRetailing. It is good news for business software providers who will do away with the nightmare of dealing with various compliances and statutory needs in different part of the country.

Contributor – Vineet

The benefits of GST for SME


This article was published on: 15/03/12 6:28 AM

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Here we will discuss about the benefits of GST for SME. Goods procured from within the state oroutside the state will be eligible for tax credit. It allow trader to offergoods at a lesser cost.
Service industry can take tax credit of taxon goods purchased and set off against tax payable on services.
Uniformity in taxing system across statewill simplify the tax compliance issues.
Manyambiguities in levied tax on service and goods will be addressed.
SGST Threshold of annual turnover isproposed to be 10 Lac and CGST threshold for annual turnover is proposed at 1.5Cr and is in the interest of SME

The idea behind the GST is to have aliberal and simplified taxing system and encourage to pay taxes. The tax burdenwill be evenly distributed in the supply chain and for regular tax payers itwill be less complicated.
Lot of ground work in each state is stillrequired for which the centre agrees to pay for the costs. It is unlikely to beintroduced in this session.

Contributor – Vineet

Impact of GST on SME and small IT companies


This article was published on: 3/03/12 7:37 AM

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Impact of GST on SME and small IT companies

Here, in this article, we will talk about the Know about the impact of GST on SME and small IT companies in India. Certain reforms are absolutely necessary for India to keep up to the Global economic reforms and trends. GST is one of such topic which is looked upon with great hope.

From a SME point of view it has never been addressed before:

Radical reforms in the taxation are absolutely necessary for SME throughout the country. It is deterrent to growth and expensive to comply with complex statutory obligations in the present structure.

A considerable time and energy of management in SME is consumed in resolving and complying with tax regime.  GST hopefully will eliminate all types of taxes applicable related to goods and services, which will simplify business processes.

Multiple taxes on the same product will not be levied as credit for tax paid will be streamlined. This will reduce costs in the production process and overall cost of goods and services for the end user.
Some key benefits for SME aspiring to go national will face little or no problem as tax rates will be uniform nationwide and standard pricing can be maintained throughout the country and of course saving from the nightmare of state wise statutory compliance.

Enormous confusions/ambiguityin interpretation of software as taxable through service tax route or sales taxroute will be addressed for small IT firms into domestic sales and services.

It is unlikely that amendment bill on GST will be tabled in this session of Parliament. Further the proposal to introduce dual GST one for state (SGST) another for center (CGST)and over and above that different percentage (20%) for goods and different percentage (16%) for services will only complicate for SME. For IT software and service providers the ambiguity will continue to remain in identifying a given IT activity as goods or as service.

We all are looking forward to concrete decisions on GST in the coming budget. It will reduce lot of taxation related overheads in terms of time and money in the supply chainand ultimately benefit the SME and the common man/end user. It is bound to stimulate growth and strengthen the economy.

Contributor – Vineet