Mandatory e-invoicing in India will start from 1 January 2021 for Indian businesses with an annual turnover exceeding Rs. 100 crore. Companies must prepare quickly and should take advantage of solutions that facilitate the issuance and receipt of e-invoices.

Earlier in October 2020, the Indian Finance Secretary Ajay Bhushan Pandey announced that issuance of e-invoices via the IRP will become available for all businesses with an annual turnover exceeding 100 crore (approx. 12 million EUR) starting 1 January 2021. He further clarified that the goal of the government is to make e-invoicing mandatory for all B2B transactions starting 1 April 2021. Hence, all transactions must be made via the GST Invoice Registration Portal (IRP) when the government implements mandatory B2B e-invoicing in India on 1 April 2021.

This announcement turned into an official action on 10 November when the CBIC finally confirmed that taxpayers whose aggregate turnover exceeds Rs. 100 crore will be required to implement the e-invoicing mandate starting 1 January 2021.

The mandate currently covers businesses in India with an annual turnover exceeding 500 crore. Banks, airlines, insurance companies, armed forces and telecom service providers are exempt from mandatory issuing of e-invoices.

Requirements for submission of e-invoices

According to the regulations, e-invoices must be issued to the IRP in JSON format. The document can include an e-signature but it is not required. Once the e-document is submitted, the IRP carries out the validation of the e-invoice in order to provide the supplier with a response message. Validation of the document is based on the following parameters:

  • Completion of data in all mandatory fields;
  • Validity of supplier GSTIN (Goods and Services Tax Identification Number);
  • Validity of buyer GSTIN;
  • Validity of invoice number and financial year;
  • Whether the invoice already exists in the GST system.

If the IRP response is positive, the invoice is digitally signed and assigned a unique number by the IRP. A QR code is also generated in order for the supplier and buyer to confirm authenticity of the e-invoice and proof that it has been registered in the GST system. The IRP then makes the document available to both parties in the GST portal.

If the response is negative, an error message is sent detailing the reason for rejection.

Distribution of e-invoices

After the above steps, the supplier must distribute the e-document to the buyer. Since the distribution between the trading parties is not regulated, the distribution method can be agreed upon between the parties. However, as exempt businesses are not obliged to accept and process JSON e-documents, it is recommended that the supplier be able to either generate PDF invoices or print paper invoices for distribution to such businesses.

Tally E-invoice integration is an API based integration of Tally and E-invoice Government portal.

Once the integration is set up, Tally can directly upload E-Invoice to the portal, without manual efforts or errors.
In tally, the IRN number and QR code will be directly printed.
Once uploaded, it can be cancelled from Tally.
Users can also see various reports. 

Please find below the features of module –

  1. Generation of E-Invoice directly from Tally immediately after saving the invoice
  2. Single or Bulk E-Invoice Upload
  3. Generation of E-Invoice directly from Tally immediately after saving the invoice
  4.  Single or Bulk E-Invoice Upload
  5. Option to print IRN & QR Code on default Tally Invoice or on separate invoice [automatic]
  6. Cancel E-Invoice Directly from Tally
  7. E-invoice Register in Tally – Report
  8. Pending e-invoice report
  9. Generated IRN report
  10. Cancelled e-invoice register
  11. Smart Error checking before e-invoice upload – To show invoice level errors (this restricts the user to upload invoice with errors in the ledger, invoice, taxation, etc)
  12. User wise restriction in tally – to allow/disallow users to generate or cancel E Invoices

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Please Download E Invoice Verify App Link :

Click on This Link E Invoice Application

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