Path breaking e-invoice initiative which completed one month on the 31st October, is poised to revolutionize the way businesses interact with each other. According to NIC, within the first month of the introduction itself, more than 495 Lakh e-invoices were generated on the NIC portal by 27,400 taxpayers. The e-invoice system, the game-changer in the GST system, was launched on 1st October, 2020 for the businesses with aggregate turnover of more than Rs. 500 Crores in the financial year.
It will be yet another milestone in India’s journey in enhancing ease of doing business. The data captured by the Invoice Registration Portal will flow seamlessly to the GSTR 1 return of the taxpayer in GST Common Portal (gst.gov.in), thus reducing the compliance burden.
Starting with 8.4 Lakh e-invoices on 1st October, 2020, the usage has gradually picked up and 31st October, 2020 saw the generation of as many as 35 lakh e-invoices in a single day. This coupled with the generation of 641 Lakh e-way bills during the month of October, 2020, (by far the highest in a month during two and half years of journey of e-way bill system), establishes the robustness of the system. As per the feedback received from the taxpayers, the response of the system is good and the generation of IRNs is hassle-free. Proactive communication by the NIC Help desk with taxpayers has helped them in finetuning their systems to reduce the errors.
Currently, there are three modes of generation of IRN in the NIC system. First is the direct API interface of the ERP system of taxpayer with the NIC system. Second is the API interface of the ERP system of the taxpayer through GSP with the NIC system. The third is using the offline tool for bulk uploading of invoices and generating IRNs. Around 15% of the taxpayers are using the offline tool for the IRN generations and 85% are integrating through API.
The Government is planning to reduce the aggregate turnover cut off to Rs 100 Crores for the generation of IRN by the taxpayers in the coming days. NIC has already enabled the API and offline tool based trial sites for these taxpayers and geared up with the required infrastructure to handle the generation of e-invoices from these taxpayers.
Keeping requirements of small taxpayers in view, who need to prepare 5-10 B2B invoices in a day, NIC is also developing an offline Excel-based IRN preparation and IRN printing tool which will allow them to enter the invoice details, prepare the file to upload on NIC IRN portal, download the IRN with QR code and print the e-invoice with QR code.
Presently, the generation of IRN using API interface is allowed for businesses with aggregate turnover more than Rs 500 crores, GSPs, and shortlisted ERPs. Now, direct access will be extended to the taxpayers using the E-way Bill API interface. Generally, the big businesses will enable their suppliers and clients to use their ERP/SAP systems for the generation of invoices. Therefore, it has been decided to facilitate them to enable their suppliers and clients to use their integration channels.
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1669430