E-Invoicing Under GST: Part 7 - Workflow from IRP to Buyer and GSTN or E-Way Bill System

Latest update: The government introduced a new GST e-invoice scheme under which businesses with turnover of Rs 500 crore and above will generate all invoices on a centralised government portal starting October 1, 2020. Earlier, the turnover threshold for businesses was set at Rs 100 crore.

There are a lot of questions around the flow of activities involved when you integrate e-invoicing into your business. To help you understand how to get started with e-invoicing, this article outlines the flow of activities from IRP to Buyer and GST Returns or e-way bill system. Once you know the flow of activities from the seller to the invoice registration portal, you’re halfway there to completing the process of e-invoicing. The second part of the e-invoicing system is from the point where you have uploaded the invoice to the invoice registration portal. From here on, the IRP does the work. Here's a detailed flow of activities.

The above exhibit explains how e-Invoice data would be consumed by theGST System for generation of e-way bills or populating relevant parts of GST Returns.

Step 1

Once the invoice is uploaded to the IRP, it will be validated and a digitally signed e-invoice along with IRN will be returned by the IRP to the seller, the GST System and to the E-Way Bill System. Sellers will be required to adhere to the schema prescribed by the GSTN.

Step 1a

The GST System will update the ANX-1 of the seller and ANX-2 of the buyer, which in turn will determine the taxpayer’s liability and Input Tax Credit.

Step 1b

The E-Way bill system will create Part-A of the e-way bill using invoice data that was electronically authorised by the Invoice Registration Portal. This Part-A will be attached to Part-B of the e-way bill which will contain the vehicle number.

Note:

1. The e-invoice standardized schema has mandatory and optional items.  The e-invoice shall not be accepted in the GST System unless all the mandatory items are present.  The optional items are to be used by the seller and buyer as per their business need to enforce their business obligations or relationships.
2. Seller may send his e-invoice for registration to more than one registrar.  But the GST system and IRP will perform a de-duplication check with central registry to ensure that the IRN that is generated is unique for each invoice.  Therefore, the IRP shall return ONLY ONE registered IRN for each invoice to the seller.  In case of multiple registrars (more than one IRPs) only one IRP will return a valid IRN to the seller. Except one, all other IRPs will reject the request of registration.
3. The QR code will enable quick view, validation and access of the invoices from the GST system from handheld devices.

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Follow our E-invoicing under GST Series on the links below:

1. E-Invoicing Under GST: Part 1 - What is an e-invoice?
2. E-Invoicing Under GST: Part 2 - E-invoicing and the Tax Department
3. E-Invoicing Under GST: Part 3 - Benefits of e-invoicing
4. E-Invoicing Under GST: Part 4 - Documents to be reported under e-invoicing
5. E-Invoicing Under GST: Part 5 - How does e-invoicing work?
6. E-Invoicing Under GST: Part 6 – E-Invoicing Workflow from Supplier to Invoice Registration Portal
7. E-Invoicing Under GST: Part 7 - Workflow from IRP to Buyer and GSTN or E-Way Bill System
8. E-Invoicing Under GST: Part 8 - Everything you need to know about Invoice Registration Portal
9. E-Invoicing Under GST: Part 9 – Features of e-invoice system you need to know
10. E-Invoicing Under GST: Part 10 – How to register your e-invoice
11. E-Invoicing Under GST: Part 11 - Myths around e-invoicing
12. E-Invoicing Under GST: Part 12 – Frequently asked questions on e-invoicing