Monday 24th February, 2020
From 1st April this year India will make the switch from voluntary to mandatory e-invoicing. All registered businesses with a previous year’s revenue greater than Rs 100 crore (approx. 13 million Euros) will be required to electronically transmit invoices to the Invoice Registration Portal (IRP). Invoices that do not have an Invoice Registration Number (IRN) will be considered invalid.
Businesses with annual turnover less that Rs 100 crore, banks, airlines, insurance companies, armed forces and telecom service providers are likely to be exempt from mandatory issuing of e-invoices.
The introduction of mandatory e-invoicing in a phased manner will bring consistency, machine-readability and uniformity, consequently putting an end to data errors and reducing tax evasion in India.
According to the new rules, 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 will carry 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.