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E-Invoice

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E-invoice does not mean that an invoice should be generated from a software on the computer or point of sales (POS) machine, central portal of tax department, as any such centralization will bring unnecessary restriction on the way trade is conducted.

E-Invoice generated by each software may look more or less same, however, they can’t be understood by another computer system even though business users understand them fully. There are hundreds of accounting/billing software that generate invoices, but they all use their own formats to store information electronically and data on such invoices can’t be understood by the GST System if reported in their respective formats. Hence, a need was felt to standardize the format in which electronic data of an Invoice will be shared with others to ensure there is interoperability of the data. The adoption of standards will in no way impact the way user would see the physical (printed) invoice or electronic (ex pdf version) invoice. All these software would adopt the new e-Invoice standard wherein they would re-align their data access and retrieval in the standard format. However, users of the software would not find any change since they would continue to see the physical or electronic (PDF/Excel) output of the invoices in the same manner as it existed before incorporation of e-invoice standard in the software.

E-Invoice feature in Business Central

Business Central has included E-Invoice feature to Indian Localization.

  • Provision for exporting invoice details in json (GSTIN provided schema V-1.01) format is provided.

  • User can generate json file from Posted Sales Invoice > Action > Generate E-Invoice. On clicking Generate E-Invoice button on posted sales invoice, system generates and saves the file.

  • User can generate json file from Posted Sales Credit Memos > Action > Generate E-Invoice. On clicking Generate E-Invoice button on posted sales credit memo, system generates and saves the file.

  • Importing signed E-Invoice json file facility is available. User can import json file from Posted Sales Invoice > Action > Import E-Invoice Response. On importing E-Invoice response, system will update below details into system.

    • Acknowledgement No
    • Acknowledgement Date
    • IRN Hash
    • QR Code

    In the same way E-Invoice Response can be imported in Posted Sales Credit Memo.

Note

System will validate IRN Hash while importing Signed E-Invoice into system, System will import only if IRN Hash is matched, system will skip other files.

  • A provision has been provided to create Json file automatically on posting of sales transaction. A new field is created in General Ledger Setup > Tax Information Tab > Generate E-Invoice on Sales Post. On enabling this field, system will create and save json file on posting of sales transaction. System will also generate IRN Hash on posting of sales invoice, if this field is disabled, system will not create json file and IRN Hash in posted transaction automatically. However, user can create json file and IRN Hash from posted document.
  • Provision has been provided to record E-Way Bill No. on Tax Information tab in Posted Sales Invoice. E-Way Bill details are included in E-Invoice json file, user will be able to export E-Invoice along with E-Way Bill details.
  • Provision has also been provided for cancellation of E-Invoice. Json file for cancellation of e-invoice is available. User needs to put E-Inv. Cancelled Date and Cancel Reason on Tax Information Tab of Posted Sales Invoice, then go to Posted Sales Invoice > Action > Click on Cancel E-Invoice and again Generate E-Invoice for the revised json file.

See Also

GST Reconciliation

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