written by | October 31, 2022

E-Invoice Process in Tally Prime and Reasons for Rejection

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Table of Content


E–invoice is a system notified by the Central Board of Indirect Taxes and Custom to electronically authenticate B2B transactions and ensures the seamless flow of tax credit between registered suppliers. The Invoice Registration Portal will generate a unique Invoice Identification Number in response to the B2B invoices reported by a registered supplier on IRP.  

Did You Know? The invoices reported by the registered supplier on the IRP will auto-populate GSTR 1 of Supplier (Detailed of outward supplier) and GSTR 2A of the buyer (Statement of Inward Supplies of Buyer).

Also Read: Top 15 TallyPrime Features You Need for Business Growth

E-Invoice Format: Form GST INV 01

The Central Board of Indirect Taxes and Customs has notified Form GST INV 01 as the format of e-invoice. Any invoice other than this format will be immediately rejected by IRP. However, most ERP (Enterprise Resource Planning) accounting and financial software follow this format to upload the invoice to the IRP like TallyPrime. If your ERP software does not produce an e-invoice in this GST INV 01 format then contact the vendor. To understand the various errors for which your e-invoice in Tally Prime can be rejected from the common portal. It is important to learn the official format of GST INV 01. It is given below 

FORM GST INV – 01

(See rule 138A)

Generation of Invoice Reference Number

IRN:

 

Date:

 

Details of Supplier

GSTIN

 

Legal Name

 

Trade name, if any

 

Address

 

Serial No. of Invoice

 

Date of Invoice

 
 

Details of Recipient (Billed to)

Details of Consignee (Shipped to)

GSTIN or UIN, if

available

   

Name

   

Address

   

State (name and code)

   

Type of supply

 

B to B supply

 

B to C supply

 

Attracts Reverse Charge

 

Attracts TCS

GSTIN of operator

 
 

Attracts TDS

GSTIN of TDS Authority

 
 

Export

 

Supplies made to SEZ

 

Deemed export

                 

Also Read: Important Guide on How To Take Backup In Tally ERP 9 For Knowledge

Sr.

No.

Description of Goods

HSN

Qty.

Unit

Price (per unit)

Value

Discount, if any

Taxable value

Central tax

State or UT tax

Integrated tax

Cess

Rate

Amt.

Rate

Amt

Rate

Amt.

Rate

Amt.

                                 
                                 
                                 
 

Freight

                     
 

Insurance

                     
 

Packing and Forwarding Charges etc.

                     

Total

                     

Total Invoice Value (In figure)

       

Total Invoice Value (In Words)

 

  Signature of the Signatory

The Frequent Errors in the Einvoice in Tally Prime

There are frequent errors in the invoices due to which the IRP portal rejects the invoices of the supplier. Here is a list of a few frequent errors and the Solutions to them:

Errors shown by IRP

Reason for Error

Solutions

The field Location must be a string with a minimum length of 3 and a maximum length of 50

The GST INV 01 has a specified location. It is not as per the form

Field location refers to the location of the supplier. Depending on your business operation, this can be either the same or different from the location where your supplies are shipped from. It must be within 2 or with a maximum of 30 characters without any special characters.

The document number doesn’t match the regular expression

The document number is not as per the required format

A document number must be as follow:

 
  1. It should not start with zero or can not be empty 
  2. It should not exceed 16 characters excluding space.
  3. Special characters like /, -, etc can not be used as a document number either; it should be included in a sequence of the document numbers.

The document date should not be a further date.

Bills or invoices cannot be generated for a future date

E-invoices should be generated for the current date only even though the supply will take place at a future date

The State Field is required

The state code is missing in the document

The GST portal has issued a state code for every state for distribution of Integrated Goods and Service Tax, ensuring you enter the correct state code from the dropdown list there.

The field address 1 or address 2 must be a string with a minimum length of 1 and a maximum length of 100

Address 1 is not as the GST INV 01 form

The address should not exceed the length of 200 words, 100 each for address 1 and address 2

The pin code does not match with the state code of the supplier

Incorrect pin code of the state

You have entered an incorrect or invalid pin code of the buyer or it is a pin code that does not match with the pin code assigned for that particular state.

E-way Bills Errors

Error Message

Error Code

Reason

Solution

The distance between the pin code is too high or low

4013

The distance specified in the e-invoice does not match the actual distance between the place of the supplier to that of the buyer

There is a distance calculator developed by the E-Way bill system on the portal. However, a Difference of 10% of the total distance will be allowed additionally.

The GSTN cannot recognize the JSON file which has been uploaded  

2140

The JSON used is not as per GST INV 01 Form

Go to the API portal for details 

Invalid Supplier State code

2259

State code mentioned is incorrect

Pass the correct state code in the supplier details

Your login credentials are not correct 

2146

You have login in with a different credential with the IRP portal

Please recheck the login credentials and try again.

Unable to sign the invoice please try after sometime 

2147

There is difficulty in reporting the invoices to the IRP 

Please check your internet connection and try again after some time

Duplicate INR

2148

Entered IRN does not exist or is invalid

Check IRN correctly and enter again

Supplier GSTIN is required

2155

Supplier GSTIN is missing in the e-invoice

It is important that the GSTIN of both the supplier and Recipient of goods or services or both should be incorporated in the invoice so that seamless credit can flow from supplier to recipient. 

Invalid format from date - (The correct format is DD-MM-YYYY)

2156

You are writing the date in a wrong format

The specified date format is dd/ mm/ yyyy. Please make sure you write the date of the invoice in the correct format

Invalid value for reverse charge applicable field

2159

Values have been incorrectly entered for a supply under reverse charge

Please refer to the relevant JSON scheme for correct values

Reverse charge is not applicable for this transaction

2162

Transactions are not covered under reverse charge

The reverse Charge Mechanism was introduced under GST for registered recipients who are receiving a supply of goods or services from an unregistered person to which tax is chargeable, the recipient of goods or services, or both are required to pay tax. Normally, the Supplier of goods or services is required to pay tax. However, Tax under Reverse Charge is not applicable to all taxable supplies; rather, The Central Board of Indirect tax and Customs has a notification of a long list of taxable events to which tax is required to be paid under reverse charge by the recipient. Thus, if the supply is not chargeable to tax under reverse charge, This error will pop up.

Invalid HSN Code 

2167

You entered an incorrect HSN number

Harmonized System of Nomenclature short for HSN Code is required to be mentioned on the invoice issued by the supplier. 

 

Currently, A registered person having annual turnover in the preceding Financial year is equal to or less than 5 Crores is required to mention a 4 digit HSN code on every B2B supplies made by him. While for B2C supplies, he is required to mention 4 digit HSN code which is an optional compliance.

 

For a registered supplier having annual turnover in the preceding Financial year is more than 5 Crores. Then, they are required to mention a 6 digit HSN code on every invoice issued by them

Also Read: Benefits of Using TallyPrime for Banking

Conclusion:

There are numerous errors you can face in generating e-invoices in Tally Prime. The best way to solve them is to study the official format of e-invoice GST INV 01 and make sure you enter all information, particulars, and detail correctly and authentically. Even after entering everything correctly, you face difficulty in uploading the invoices on IRP and generating e-invoices. This may be caused due to network errors or difficulty in communicating with the GST common portal. If errors do not get solved after re-trying several times. Contact Tally helpdesk, they can help you to resolve the issue. 

You can use the Biz Analyst application to manage your business effectively. It syncs with Tally data making it easy to access even if you’re offline or on the go. You can manage the accounts, create ledger entries, access business reports, and more to keep your business on the right track

FAQs

Q: When did compliance with the E-invoice become mandatory?

Ans:

E-invoicing is mandatory from 1st October 2020 to all registered businesses under GST whose aggregate turnover has exceeded the ₹500 crores limit in any of the previous financial years starting from 2017-18. Currently, the aggregate turnover limit is ₹10 Crores.

Q: What is the reason behind compliance with E-invoice?

Ans:

There were a lot of fake GST invoices issued by fraudulent suppliers to pass on tax credits to a long chain of buyers or receipts of goods or services or both. To put an end to this, various amendments were made to GST laws to check the movement of goods. Through e-invoice, the government keeps track of the movement of the tax credits. Details from the e-invoice are fetched to auto populate the GSTR 1 of the supplier and GSTR 2B of the buyer.

Q: When did compliance with the E-invoice become mandatory?

Ans:

E-invoicing is mandatory from 1st October 2020 to all registered businesses under GST whose aggregate turnover has exceeded the ₹500 crores limit in any of the previous financial years starting from 2017-18. Currently, the aggregate turnover limit is ₹10 Crores.

Q: What is the reason behind compliance with E-invoice?

Ans:

There were a lot of fake GST invoices issued by fraudulent suppliers to pass on tax credits to a long chain of buyers or receipts of goods or services or both. To put an end to this, various amendments were made to GST laws to check the movement of goods. Through e-invoice, the government keeps track of the movement of the tax credits. Details from the e-invoice are fetched to auto populate the GSTR 1 of the supplier and GSTR 2B of the buyer.

Q: What is the official format of an E-invoice?

Ans:

The Central Board of Indirect Taxes and Customs has notified Form GST INV 01 as the official format of e-invoice.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.