Index

e-Invoice Enablement: Form, Process, Status Check, Applicability, Guidelines

Q: How do I enable an e-invoice?

If your business turnover for the previous year exceeded Rs 5 crore, the e-invoicing facility automatically becomes enabled for your GST Identification Number. Otherwise, you can self-enable the e-invoicing facility for a specific GSTIN. e-Invoice enablement can be done following only a couple of steps on the GST e-invoicing portal.

Q: How do I check my e-invoice enablement status?

Companies operating in multiple states often have more than one GSTIN. So, e-Invoice enablement status check becomes important for such companies. Checking the status is very easy. You just need to visit the e-invoice status check webpage, fill your GSTIN and follow the subsequent instructions.

Q: What are the criteria for e-invoice applicability?

e-Invoice enablement applicability depends on a company’s annual turnover in the previous year. When this facility was introduced in 2020, the minimum threshold was above Rs 500 crore. Since then, the GST Council has been reducing the threshold gradually. As of the financial year 2023-24, the minimum threshold for mandatory e-invoice enablement is Rs 5 crore annual turnover.

By Annapoorna

The e-invoicing system has been an ambitious initiative under the GST system. Any enterprise that meets the e-invoicing criteria for the first time must check its e-invoice enablement status on the e-invoicing portal. This article explains everything, from the importance of e-invoicing to enabling e-invoice voluntarily in the GST Portal.

Importance/need for e-Invoice enablement

e-Invoicing is mandatory for GST-registered taxpayers with over Rs 5 crore turnover for FY 2023-24. The threshold is gradually going down year after year. That means, in the near future, it might be necessary for any company engaged in B2B transactions to e-invoice sales and purchases, irrespective of turnover.

However, mandatory or not, we can hardly ignore the importance of e-invoice enablement. It offers several benefits for businesses engaged in B2B transactions.

Data accuracy - Manually entering GST data in returns suffers from human errors, excessive time waste, training costs, data ambiguity, and inaccuracies. e-Invoicing helps overcome these obstacles. It also becomes easier to reconcile and validate GST data. It improves the quality of input tax credits claims with the authorities approving or authenticating the invoices.
Interoperability - MSMEs leverage software applications for multiple business processes to streamline their operations and management practices. The e-invoicing system makes GST invoice data interoperable across different applications.
Reliable automation - GST e-invoicing allows reliable automation of GST return preparation and other business processes.
Real-time tracking - It allows geographically distributed businesses to keep track of purchases and sales from any location with no time lag.
Zero data loss - Your B2B transactions are always online, just a click away. That means zero risk of losing valuable business data.

e-Invoice enablement turnover applicability

The minimum annual turnover for mandatory e-invoicing was Rs.500 crore in 2020, ever since then the GST Council has been decreasing the minimum turnover criteria gradually.

At present, the minimum turnover criteria for mandatory GST e-invoicing is Rs 5 crore annually from 1st August 2023 onwards.

Annual turnover in the previous financial year	e-invoice enablement applicability
Exceeding Rs 5 crore	Mandatory
Below the threshold	Optional (voluntary) e-invoice enablement

Format of e-invoice enablement form

Companies operating below the threshold for mandatory GST e-invoicing can voluntarily avail the benefits of e-invoicing. For that, they must opt for e-invoice enablement in the GST portal. It requires submission of an e-invoice enablement form auto-filled with a few basic details, like

Applicant name
Trade name
Address
Main ID
Mobile number

The format of the form-

Steps for e-invoice enablement/e invoice enablement process

Step 1 - Go to the GST Invoice Registration Portal or IRP.
Step 2 - For e-invoice enablement status check, follow the status check link. Is it enabled already? Then you are all set. Otherwise, move forward.
Step 3 - Visit the GST e-invoice system homepage. Click the “Registration” tab. Select “e-Invoice Enablement” from the drop-down menu.

e invoice enablement process

It will open up the following window.

e invoice enablement form

Step 4 - Login with your GST number to access the e-invoice enablement form.
Step 5 - Verify the GST details using the “SEND OTP” button below the e-invoice enablement form.
Step 6 - Once the verification is complete, you will be asked to create Username and Password Invoice Registration Portal or IRP.
Now you can log in to the GST e-Invoicing system.

How to enable e-invoicing for GSTIN?

You can voluntarily enable e-Invoicing for your B2B transactions. It requires following a few simple steps and validating your company's specific details using system-generated OTP.

Once you complete the e-invoice enablement process, you will need to create a username and password for logging into e-invoicing systems.

How to check e-invoice enablement status?

It’s easy to carry out an e-invoice enablement status check. Go to the Status Check webpage, provide the specific GST Identification Number (GSTIN) and click GO to know if e-Invoicing is enabled for the GSTIN.

e-invoice enablement status check

The GST e-Invoicing system has vastly reduced common challenges associated with B2B transactions, like reconciliation, reporting and validation of GST data. It has helped the GST department to streamline processes related to GST filing. The number of fraudulent practices have significantly gone down. It has saved the government exchequer from loss of tax revenue. Companies have also benefited from faster processing of input tax credits and hassle-free automation of GST reporting.