E-INVOICE – Two new changes will be applicable to GST holders starting from November 1, 2023.

Hey Friends,

Thank you for visiting my informative blog. Today, I will inform you about the two changes in GST.

Let’s begin,

What is E-Invoice?

‘e-Invoicing,’ or ‘electronic invoicing,’ is a system designed for the authentication of B2B invoices and several other related documents electronically through the GSTN (Goods and Services Tax Network). This authenticated data is then made available for further use on the common GST portal.

During its 35th meeting, the GST Council made the decision to implement an e-invoicing system, initially targeting specific categories of businesses, primarily large enterprises. Subsequently, this system was extended to encompass mid-sized and small businesses as well.

It’s essential to clarify that e-invoicing doesn’t involve generating invoices directly on the GST portal. Instead, it involves the submission of an already generated standard invoice on a shared e-invoice portal. This process streamlines multi-purpose reporting by requiring a one-time input of invoice details. The Central Board of Indirect Taxes and Customs (CBIC) specified a set of common portals for e-invoice preparation through Notification No.69/2019 – Central Tax.

Under the electronic invoicing system, each invoice is assigned a unique identification number by the Invoice Registration Portal (IRP), which is managed by the GST Network (GSTN). The first IRP was launched by the National Informatics Centre and can be accessed at einvoice1.gst.gov.in.

All invoice data is automatically transmitted from this portal to both the GST portal and the e-way bill portal in real time. Consequently, this eliminates the need for manual data entry when filing GSTR-1 returns and generating part-A of e-way bills, as the IRP directly forwards the information to the GST portal.

Who is required to generate an e-invoice, and what is its applicability?

Here, I am writing about the applicability of e-invoicing

PhaseApplicable to taxpayers having an aggregate turnover of more thanDate of ApplicabilityNotification number
1Rs 500 crore01.10.202061/2020 – Central Tax and 70/2020 – Central Tax
2Rs 100 crore01.01.202188/2020 – Central Tax
3Rs 50 crore01.04.20215/2021 – Central Tax
4Rs 20 crore01.04.20221/2022 – Central Tax
5Rs 10 crore01.10.202217/2022 – Central Tax
6Rs 5 crore01.08.202310/2023 – Central Tax

As of 11 September 2023, 2 important changes were announced for the E-invoice

  1. 2 Factor Authentication
  2. New Time limit for reporting of Invoices on the IRP portal

What is 2 Factor Authentication?

In the context of Goods and Services Tax (GST) in India, Two-Factor Authentication (2FA) is a security mechanism used to provide an additional layer of protection when accessing the GST portal or engaging in various GST-related online activities. The primary purpose of 2FA is to bolster the security of user accounts and ensure that only authorized individuals can access sensitive tax-related information and execute actions on the GST portal.

The process of 2FA in GST operates as follows:

  1. Username and Password: Users initiate the authentication process by entering their username and password, which serves as the first factor of authentication.
  2. Second Factor: Following the successful entry of their username and password, users are prompted to provide a second factor of authentication, typically in the form of a One-Time Password (OTP). This OTP is dispatched to the user’s registered mobile number or email address associated with their GST account.
  3. OTP Verification: Upon receipt of the OTP via their registered mobile number or email, users must enter it on the GST portal to finalize the login procedure.

The incorporation of both the username/password (first factor) and the OTP (second factor) introduces an additional layer of security to the login process, effectively minimizing the risk of unauthorized access to GST accounts and data.

In general, GST users are required to activate and employ 2FA when engaging in specific sensitive activities on the GST portal, such as the submission of GST returns, processing payments, or accessing critical tax-related information. This security measure is instrumental in guarding against fraudulent activities, identity theft, and unauthorized entry to vital financial and tax data within the GST system.

Applicability of 2-Factor Authentication in GST Taxpayers

From the 1st Nov 2023, the 2-factor authentication will be implemented on every taxpayer whose Annual aggregate turnover exceeds 20 crores or equal to 20 crores.

There are 3 different ways to get the OPT for the 2-factor Authentication

  1. SMS – You will get your OTP through the SMS in your registered Mobile number.
  2. On Sandes App – This app has been introduced by the Government, This is a messaging app for receiving the OTP. You can install this app on your phone with your registered mobile number. And you will get the 2-factor Authentication instantly.
  3. Using the “NIC-GST-SHIELD” App – NIC-GST-Shield” App is provided for OTP authentication to log into the e-Way Bill and e-Invoice System. So you can get the OTP through this App as well.

New Time Limit for Reporting Invoices on the IRP Portal

The GST Department has set a time limit for entering your invoice in the IRP within 30 days from the invoice date. If you fail to create your e-invoice within 30 days of the invoice date, you won’t be able to generate it from the IRP portal. And this limitation is applicable from August 20, 2023, to every taxpayer with an Aggregate Annual Turnover (AATO) of more than or equal to 100 crores.

Time Limit – You have to generate your e-invoice within 30 days. If you fail to do so, the system will block your e-invoice portal for further processing.

The article issued by the government on tax reforms.

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