Explained - What is Difference Between E-invoice and Invoice?
In India till now, traditional invoices were being introduced, which is now going on the traditional way to e-invoice system. Know what are the differences between traditional invoice and e-invoice system and how e-invoice system provides good service to tax payers, evasion of taxes, best GST administration and many other benefits.
Sl. No. |
Point of comparison |
Under the present system of
invoicing |
Under the e-invoicing system |
1 |
Applicability |
All taxpayers |
E-invoice is applicable to those taxpayers who supply or export B2B, and who have a total annual turnover of more than Rs 500 crore, they have to generate e- invoice from October 1 2020 (e- invoice also applies to those people , whose aggregate turnover is Rs 100 crore from January 1 2021. |
2 |
Physical invoice |
Physical challans / invoice will
continue to be made as per the prescribed rules. |
|
3 |
Reporting of invoices on the GST
portal |
Data is
inserted by manual typing in traditional invoice. The JSON is uploaded with
the help of accounting software that is used by the API to upload the data. |
In modern e-invoice, data is
inserted as an invoice, but it is mandatory to follow the schema and
parameters set in the e-invoice system. |
4 |
Invoice Reference Number |
Invoice
contains only the invoice number and not the invoice reference number. There
is no fixed format and conditions for invoice. Invoice is always assigned in
sequence. |
Under the e-invoice system, the e
-invoice reference number is generated by the hash algorithm. The main intention is to provide
easy evaluation of e-invoices through unique IRN which is validated on the
Central Registry and saved for future reference. |
5 |
Dispatch of e-invoice |
GST portal do not have any feature of
validation and downloading of invoices. |
Once the e-invoice is validated
under e-invoice system it’s sent to the supplier to their registered e-mail
ID. |
6 |
Digital Signature |
Only supplier’s digital signature is
required on the invoice. |
Validated e-invoices will be
digitally signed by the IRP. |
7 |
QR code |
You could not verify invoice on the
basis of QR Code. |
When your invoice is validated its
QR Code will be generated through IRP. Verification of invoices enable even without
internet facility. It is mandatory for B2C transactions to have QR code. |
8 |
Possibility of mistakes |
Due to the manual functions
possibility of errors is higher. |
Least possibilities of errors since
once the JSON of invoice details is uploaded and verified on the IRP, GSTR-1
of seller is updated. Further, e-Way bill details under Part A are also
filled up, wherever applicable. |
9 |
Amendment of invoice |
You can Amend or Cancel invoice as
amendment and cancellation facility available on GST portal and can be made
as per law |
E-invoice is only available for 24
hours with the IRP during which time the invoice can be fully cancelled.
After that, the invoice can be amended as per GST laws on the GST portal. |
10 |
Viewing the invoice |
Invoice details entered could be
viewed on the GST portal |
Necessary invoice details can be
made available on an app that can scan the QR code. Further, e-invoices are
sent as an e-mail ID so the supplier can always save a copy under the
e-invoicing system. |
11 |
Verification of invoice |
Not easy to verify the genuineness
of an invoice during an inspection |
Easy to verify the genuineness by
scanning QR code and also checking of IRN |
12 |
Possibility of search |
Relatively higher possibility of a
search by the department |
Lower possibility of a search by
the department since invoice details at the transaction level is already
available with them. |
E-invoice is applicable to those taxpayers who supply or export B2B, and who have a total annual turnover of more than Rs 500 crore, they have to generate e- invoice from October 1 2020 (e- invoice also applies to those people , whose aggregate turnover is Rs 100 crore from January 1 2021.
No comments