The idea of E-invoicing was introduced under the GST legal framework for a certain class of registered taxpayers. A valid TSS subscription is important to use TallyPrime for generating e-Invoice online. The Tally Prime e-invoice process completely revolutionised this domain. Let’s understand how!
Did You Know? A Bussiness Unit located in a Special Economic Zone is exempt from compliance with e-invoicing.
E-Invoicing Registration Portal
The Invoice Registration Portal does not generate e-Invoices, but taxpayers must create their GST supplies invoices as usual as per the e-invoicing format called Form GST INV 01. These invoices will then be required to be reported to Invoice Registration Portal (IRP).
Invoice Registration Portal will then generate a unique reference number called “Invoice Reference Number (IRN)”, which will be digitally signed, and the e-invoice will be returned to the supplier.
Thus, a GST e-invoice will be invalid without a valid IRN. Apart from regular Supply of goods or services or both by the notified persons, the provision of E-invoicing is as it is applicable on debit notes and credit notes as well.
Before diving any further, let us understand a few important definitions for a better understanding of the process of generating an e-invoice:
1. Notified Registered Person
All registered businesses under the relevant provisions of the GST laws will be required to issue e-invoices hereinafter referred to as “Notified Registered Persons” if in any preceding financial year from 2017-18 onwards is greater than ₹10 crores.
It is worth noting that compliance with e-invoicing is not voluntary, and only the notified persons are eligible to report invoices on IRP.
2. Invoice Registration Portal
The invoice Registration portal is maintained by The Goods and Service Tax Network(GSTN), on which e-invoice is required to be reported. In response to it, IRP will generate a unique reference number called Invoice Reference Number (IRP).
E-invoice Format: GST INV 01
How To Generate E-Invoice Through TallyPrime
Now while recording sales transactions, you can easily generate an e-invoice in Tally Prime. Here are a few steps you need to follow:
Step 1: Specify the required voucher details, such as the party A/C name, GST ledger, name of items, etc.
Ensure that your invoice number does not start with “0” or with special characters such as “/”or “-“, these invoices are rejected by IRP.
Step 2: While creating a voucher, enable “Provide e-invoice details” to “Yes”.
Step 3: New window appears on your screen, “E-invoice details” specify the Bill to place or Ship to place. The specified details will be saved for future transactions with the same party.
Step 4: Press Ctrl + A to save the details and return back to the voucher screen.
Step 5: Fill in the voucher details and press again CTRL + A to save the voucher.
Step 6: A popup window will appear on your screen asking you to confirm to generate an e-invoice. Press “Y” or enter on the keyboard or click “Yes” to continue.
Step 7: On the next window, enter the e-invoice login details generated by you on the IRP and then press “Enter” to continue.
Step 8: The e-invoice gets reported on the IRP, and in response to it, “e-invoice generated successfully” will appear on your screen.
Step 9: On the next window, press “P” or click on the print option to print the invoice or download the soft copy of the invoice. The e-invoice with a unique Invoice Reference Number and the QR Code will appear on your screen as generated by IRP.
Configuration of e-Invoice With e-Way Bill System
In addition to e-invoice generation, you can also generate e-way bills with TallyPrime. If you want to generate an E-Way bill, follow the given below steps:
Step 1: While recording Sales transactions under the statutory details, click on transporter details.
Step 2: Specify the details in KMs in “From” and “Ship To”. This is the distance between your place of supply to that of the supplier.
Step 3: The EWB 01 form requires the details of the transporter to be filled. Specify the Vehicle number, Vehicle type, if the mode of transportation is the road, and the date to continue further.
Step 4: When the mode of transportation is other than roads like air, water, or Railway. Then, enter Doc/Lading/RR/Airway numbers and date.
Step 5: Press “Enter” and continue to fill out the sale voucher.
It is worth noting that IRP will communicate other details of supply like the quantity of goods items, HSN number, and other details to the E-Way portal. On Successfully generating an E-way bill, these details will appear on the bill.
How to Generate Bulk e-Invoices in Tally Prime?
For multiple numbers of prerecorded sales vouchers, e-invoice can be generated in bulk at a time for all or any of the vouchers in TallyPrime. To Generate an e-invoice in bulk, Follow the below steps to get started:
Step 1: On Gateway of Tally, Press “Z” on the keyboard or click on “Exchange.”
Step 2: From the dropdown menu, Select “Sending for e-invoice” or press “I” from the keyboard.
Step 3: From the window that appeared, you can see the unreported transactions for IRP, and you can select all or any of them to report on IRP and generate an e-Invoice.
Step 4: Select the transactions you want to report on IRP and press “S” on the keyboard to send the details. Alternatively, if you want to report all transitions to IRP. Then, simply press “S” to select any individual transactions.
Step 5: On to the next window, you will be required to continue by pressing “Y” or entering from the keyboard or Clicking on “Yes”.
Step 6: Now, enter the e-invoice login credentials and press enter to continue.
Step 7: Once the transactions are reported to the portal, The IRN number and QR Code will be updated in the respective vouchers. Also, A new screen will appear stating the e-invoice generated and those rejected. Then, press “Enter” to continue.
Also Read: Benefits of Using TallyPrime for Banking
How to Cancel e-Invoice in Tally Prime?
It is quite possible that a sale may not be materialised due to many reasons like changes in rates, difficulties in transportation, etc. In that case, you will require to cancel the e-invoice previously generated. As per the notifications issued by the Central Board of Indirect Taxes and Customs (CBIC), you cannot cancel an e-invoice once generated after 24 hours of its reporting on IRP. To cancel an E-invoice, here are a few steps to follow –
Step 1: On Gateway of Tally, press “D” on the keyboard or click on “Display more Reports.”
Step 2: Select GST Report and then Select e-invoice.
Step 3: Under “IRN Generated”, Select “IRN generated from e-invoice system.”
Step 4: There, you will find the e-invoice already generated and select the one that you want to cancel.
Step 5: Press “F10” to continue.
Step 6: On to the next window, Select the reason for the cancellation of the IRN, and enter your remark.
Step 7: To continue, press CTRL + A to save the details. The vouchers will then move to the pending selection.
Now the e-invoice is moved from the cancellation option to the Exchange menu. To continue further, Follow the given below steps:
Step 1: On the gateway of Tally, Press “Z” on the keyboard or Click on “Exchange”
Step 2: From the dropdown menu, Select “Send for e-invoicing” or press “I” on the keyboard to continue
Step 3: Select the transactions against which you want to cancel E-invoice on IRP and press “S” on the keyboard to send the details. Alternatively, if you want to cancel the e-invoice against all transitions to IRP. Then, simply press “S” to select any individual transactions.
Step 4: On to the next window, you will be required to continue by pressing Y or entering from the keyboard or clicking on “Yes”.
Step 5: Now, enter the e-invoice login credentials and press enter to continue
Step 6: The “Exchange Summary” will appear on the next screen, stating the summary of e-invoices canceled and those rejected for cancellation.
Alright, we have discussed a few legal provisions on e-invoicing and how Tally Prime could help you comply with e-invoicing. The new TallyPrime is designed to ease your ways of doing business, it can generate e-invoices, cancel them, and you can generate e-way bills along with e-invoices. We hope now you understand entirely how e-invoicing in Tally Prime works.
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