1.1 What is E-Invoice?

E-Invoice (Electronic Invoice) is a system in which B2B invoices are authenticated electronically by the GSTN (Goods and Services Tax Network) for further use on the common GST portal. It is a mechanism to ensure uniformity in the generation of invoices and help prevent tax evasion.

Key Features:

• Invoice Registration Number (IRN): A unique 64-character hash generated by the Invoice Registration Portal (IRP)
• QR Code: Contains essential invoice details for easy verification
• Digital Signature: Digitally signed by IRP for authentication
• Real-time Reporting: Automatically reported to GST portal and e-way bill portal

1.2 What is E-Waybill?

E-Waybill (Electronic Way Bill) is a document required to be carried by a person in charge of the conveyance carrying goods of consignment value exceeding ₹50,000. It is generated electronically on the e-way bill portal.

Key Components:

• Part A: Contains details of GSTIN of supplier and recipient, place of delivery, invoice details, HSN code, value of goods, and transport document number
• Part B: Contains vehicle details (vehicle number and transporter details)

1.3 Legal Framework

E-Invoice Legal Provisions:

• Section 31(3)(d) of CGST Act, 2017: Empowers government to notify class of persons for electronic furnishing of invoice details
• Rule 48(4) of CGST Rules, 2017: Mandatory electronic invoicing for notified class of registered persons
• Notification No. 13/2020 - Central Tax dated 21.03.2020: Initial e-invoice notification

E-Waybill Legal Provisions:

• Section 68 of CGST Act, 2017: E-way bill for movement of goods
• Rule 138 of CGST Rules, 2017: Detailed provisions for generation and validity of e-way bill
• Notification No. 12/2018 - Central Tax dated 07.03.2018: E-way bill implementation

2.1 Section 31(3)(d) - Tax Invoice

Explanation: This section provides the legal basis for the government to mandate certain classes of taxpayers to upload their invoice details to the common portal (IRP - Invoice Registration Portal) and obtain IRN.

2.2 Rule 48(4) - Electronic Furnishing of Invoice Details

2.3 Key Definitions

3.1 Phase-wise Implementation

3.2 Documents Covered Under E-Invoice

The following B2B supply documents require e-invoicing:

• Tax Invoice: For supply of goods or services or both
• Debit Note: For any increase in taxable value or tax amount
• Credit Note: For any reduction in taxable value or tax amount

3.3 Practical Example

4.1 Step-by-Step Process

1. Step 1: Prepare Invoice

   Prepare invoice as per normal business practice with all mandatory particulars under Section 31 of CGST Act, 2017

2. Step 2: Generate Invoice JSON

   Convert invoice data into prescribed JSON format (Schema) as per GSTN specifications

3. Step 3: Upload to IRP

   Upload JSON data to Invoice Registration Portal (IRP) using one of the following methods:

   • Direct upload on IRP portal
   • Through GSP (GST Suvidha Provider) APIs
   • Through accounting/billing software integrated with IRP
   • Mobile app (for smaller businesses)
4. Step 4: Validation by IRP

   IRP validates the invoice data for correctness and duplication

5. Step 5: IRN Generation

   Upon successful validation, IRP generates unique 64-character IRN using SHA-256 hash

6. Step 6: Digital Signature & QR Code

   IRP digitally signs the invoice and generates QR code containing IRN and other details

7. Step 7: Return Signed Invoice

   IRP returns digitally signed JSON with IRN and QR code to the taxpayer

8. Step 8: Print/Send Invoice

   Taxpayer prints or emails invoice with IRN and QR code to the buyer

9. Step 9: Auto-reporting

   IRP automatically reports invoice details to:

   • GST Portal (for auto-population in GSTR-1)
   • E-way Bill Portal (for Part A pre-filling if applicable)

4.2 Time Limit for E-Invoice Reporting

4.3 Cancellation of E-Invoice

Time Limit: E-invoice can be cancelled within 24 hours of generation of IRN.

Procedure:

• Login to IRP portal or use API/software
• Select invoice to be cancelled using IRN
• Provide reason for cancellation
• Submit cancellation request

Note: After 24 hours, only credit note/debit note can be issued for corrections.

5.1 Category-wise Exemptions

5.2 Document-wise Exemptions

Following documents are NOT required to be reported on IRP:

• Bill of Supply: Issued for exempted or nil-rated supplies
• Delivery Challan: For movement of goods without sale
• Receipt Voucher: For advance payment received
• Refund Voucher: For refund of advance payment
• Credit/Debit Notes: Related to exempted/nil-rated supplies

6.1 Section 68 - Inspection of Goods in Transit

6.2 Rule 138 - E-Way Bill

6.3 Components of E-Waybill

7.1 When is E-Waybill Required?

7.2 Who Should Generate E-Waybill?

7.3 Exemptions from E-Waybill

Goods Exempted:

• Alcoholic liquor for human consumption
• Petroleum crude, high speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel
• Jewellery, precious stones and precious metals (subject to conditions)
• Currency and used personal household effects
• Transit cargo from Nepal, Bhutan, Myanmar, Bangladesh

Specified Movements Exempted:

• Non-motorised conveyance
• Movement from port, airport, air cargo complex, land customs station to ICD/CFS for clearance
• Movement under customs bond from ICD to customs port/airport/land customs station
• Transit cargo transported to Nepal or Bhutan
• Goods transported by rail (where consignor is Central/State Government/Public Sector Undertaking)

7.4 Practical Examples

8.1 Step-by-Step Process

1. Step 1: Registration

   Register on e-waybill portal (www.ewaybillgst.gov.in) using GSTIN credentials

2. Step 2: Login

   Login using username (GSTIN) and password

3. Step 3: Generate EWB

   Click on "Generate New" option under "E-Waybill" menu

4. Step 4: Fill Part A Details

   Enter following details:

   • Transaction type (Outward/Inward supply, Export, Job Work, SKD/CKD, Recipient not known, For own use, Exhibition/Fairs, Line sales, Sales return, Others)
   • Sub-type (Supply/Export/Job Work etc.)
   • Document type (Tax Invoice/Bill of Supply/Delivery Challan/Credit Note/Others)
   • Document number and date
   • From GSTIN/UIN, Legal name, Trade name, Address (auto-populated)
   • To GSTIN/UIN, Legal name, Trade name, Address, Place, State
   • Item details: Product name, Description, HSN code, Quantity, Unit, Taxable value, CGST rate, SGST rate, IGST rate, Cess rate, Cess (non advol)
   • Transporter document number and date
5. Step 5: Fill Part B Details

   Enter transport details:

   • Mode of transport (Road/Rail/Air/Ship)
   • Vehicle number or Transport document number & date (for rail/air/ship)
   • Transporter ID (GSTIN of transporter) or Transporter name
   • Approximate distance (in km)
6. Step 6: Submit

   Verify all details and click "Submit"

7. Step 7: EWB Generation

   System generates unique 12-digit EWB number (EBN)

8. Step 8: Print/Download

   Download or print e-waybill in PDF format. The person in charge of vehicle must carry:

   • EWB number (physical or electronic copy)
   • Invoice/Bill of Supply/Delivery Challan

8.2 Auto-population from E-Invoice

8.3 Updating Vehicle Details (Part B)

When Required: When vehicle is changed during transit or multi-modal transport

Procedure:

• Go to "Update Vehicle No." option on e-waybill portal
• Enter EWB number
• Enter new vehicle number and reason for change
• Submit to update Part B

Time Limit: Can be updated any number of times before expiry of EWB validity

8.4 Consolidation of E-Waybills

Purpose: When transporter is carrying multiple consignments for multiple consignors/consignees in one vehicle

Benefit: Single consolidated e-waybill for inspection instead of showing multiple EWBs

Procedure:

• Generate individual e-waybills for each consignment
• Login to transporter's account on e-waybill portal
• Select "Consolidate EWB" option
• Add multiple EWB numbers
• Enter consolidated vehicle number
• Generate consolidated e-waybill

Note: Individual EWBs remain active along with consolidated EWB

9.1 Validity Rules

9.2 Extension of Validity

9.3 Cancellation of E-Waybill

Time Limit: E-waybill can be cancelled within 24 hours of generation provided goods have not been transported

Who Can Cancel: Person who has generated the e-waybill

Procedure:

• Login to e-waybill portal
• Go to "Cancel EWB" option
• Enter EWB number
• Select reason for cancellation
• Submit cancellation request

Note: If recipient has not reported rejection, supplier can cancel within 24 hours

10.1 Penalties for E-Invoice Violations

10.2 Penalties for E-Waybill Violations

10.3 Interest on Delayed Payment

10.4 Procedure for Payment of Penalty

For E-Waybill Violations (Section 129):

1. Proper officer detains goods and vehicle
2. Officer issues detention order in Form GST MOV-06
3. Owner of goods required to pay tax + penalty for release
4. Payment through Form GST MOV-09 or DRC-03
5. Goods released after payment in Form GST MOV-07
6. If not paid within 7 days, goods confiscated and sold

For Other Violations (Section 122/132):

1. Show Cause Notice issued in Form GST DRC-01
2. Reply filed within 30 days or extended period
3. Personal hearing (if requested)
4. Order passed in Form GST DRC-07
5. Payment of determined penalty in Form GST DRC-03
6. Appeal to Appellate Authority (if aggrieved)

11.1 E-Invoice Related Cases

11.2 E-Waybill Related Cases

11.3 Key Takeaways from Case Laws

12.1 E-Invoice Amendments

12.2 E-Waybill Amendments

12.3 Common Amendments Affecting Both E-Invoice & E-Waybill

12.4 Upcoming Proposed Amendments (Under Discussion)

13.1 Relationship Between E-Invoice and E-Waybill

14.1 E-Invoice Generation Process Flowchart

14.2 E-Waybill Generation Process Flowchart

14.3 Goods Detention & Release Process Flowchart