1. What is e-invoicing?
- Every GST registered business with an annual turnover that exceeds a specified threshold in the previous financial year must have its GST invoice registered by obtaining an Invoice Reference Number (IRN) with any of the Invoice Registration Portals (IRP) belonging to GSTN, prior to its issuance to a B2B customer. E-invoicing applies to export transactions as well.
2. What is IRP?
- Until September 2022, the government enabled e-invoice registration was done only on a single portal built and operated by National Informatics Centre (NIC). In October 2022, the government empaneled four private players including EY to establish a technology infrastructure and platform to enable the Taxpayers to undertake the process of invoice registration as may be required by Taxpayer under the applicable GST Law. In this regard, GSTN has assigned the URL (www.einvoice5.gst.gov.in), which would be powered by EY for GSTN as a portal for e-invoice authentication.
- IRP shall provide the function of registering tax invoices (and such other documents prescribed under GST law) by generating an Invoice Reference Number, QR Code, and digitally signing the GST e-invoice upon performing certain validations mandated by the government.
3. Why was there a need for additional IRPs?
- E-invoicing is mandatory for taxpayers with an annual turnover exceeding INR 10 crores (in the previous FY) from October 2022. This threshold is expected to be brought down further in the coming year(s). Further, e-invoicing through the government portal may also be mandated for B2C invoices going forward.
- Additional IRPs have been appointed to share the additional transaction load anticipated on the NIC portal. More importantly, it is expected that the entry of private players would bring in a host of Value-added Services (VAS) that taxpayers can avail of using the data processed through the IRP.
4. Will the NIC portal stop operating/ be shut down?
- No, in addition to the present IRP website i.e. www.einvoice1.gst.gov.in, recently appointed IRPs shall operate in addition to this. Taxpayers may register themselves with multiple portals for registering of e-invoices.
5. Where can I access IRP portal?
- IRP Portal operated and managed by EY on behalf of GSTN can be accessed at <<https://www.einvoice5.gst.gov.in>>
6. From when is IRP operated and managed by EY for GSTN, functional?
- Mandatory e-invoice generation facility and some of the value-added services (VAS) are already operational. EY will continue to add VAS (VAS on IRP) over the period of time.
7. What is the essential function of EY as an IRP?
- As part of the mandatory services provided by EY to GSTN, the following activities shall be undertaken by IRP managed by EY - e-invoice registration including validation of relevant particulars as laid down by GSTN (such as de-duplication check), generation of Invoice Registration Number (IRN), signing of QR code, transmit e-invoice details to GSTN, e-waybill system, etc. As mandated by the government, there will be no fee charged for these activities.
- In addition, IRP shall also provide VAS for a separate fee to clients. The real benefit for clients would be from various services offered via VAS on IRP.
8. What are the various application options that EY plans to offer as an IRP?
- Standard Could Application Function (Free)
- VAS Cloud Application Services
- API VAS (VAS that other GSP/ ERPs can use by onboarding their customers)
- Mobile Application VAS
- Desktop or Offline Application VAS
8. What are some of the distinguishing features of the mandatory IRP services?
Some distinguishing features include:
- Simple three-step registration process for all GSTINs under a PAN
- Manage all GSTINs under a PAN with single user log in and create sub-users with role-based access
- Manage all invoices registered, cancelled and errored on the UI along with intuitive dashboards
- Enhanced security in terms of connectivity with three ISO and two SOC certificates
- Reduced latency
- Enhanced user interface on web portal as well as offline desktop utility
- Ability to upgrade to and access and experience a range of enhanced and differentiated VAS
9. What are the benefits of VAS on IRP ?
VAS on IRP is expected to offer the following benefits:
With respect to data flow across vendor and dealer management systems and ERPs
- Machine readable data
- Automated exchange of authenticated e-invoice data
- Real-time communication of transaction status across the supply chain and value chain
- ERP integration to automate AP and AR process
With respect to cross border transactions
- India’s first PEPPOL registered access point
- Real time invoice exchange of invoices with overseas customers and vendors
Enables businesses to optimize working capital and reduce business risks
- Access to digital trade finance from empanelled financial institutions (eg trade receivables)
- Understand customer and vendor tax compliance and credit worthiness
- Access to authenticated invoice data thereby reducing risk of tax credit loss
Enhanced tax compliance experience
- Seamlessly integrated with best-in-class GST compliance solution – DigiGST for e-invoice, e-way bills and returns
- Leverage on IRP processed data for Income tax TDS and TCS compliances
Best in class security and support
- EY is a multinational and multidisciplinary organisation trusted by many clients globally
- 3 ISO and 2 SOC certificates planned and secured with multi-layer protection for data in transit and at rest
- 24 x 7 support with strong SLAs to suit business criticality
10. Is this solution relevant for clients who are not required to undertake e-invoicing? (Such as banks and insurance companies who are exempt from e-invoicing)
- Yes. These clients can still avail various value added services.
12. What should a taxpayer do to avail of mandatory activities and VAS?
- For Mandatory – The taxpayers can refer to the link https://einvoice5.gst.gov.in/ for further details.
- For VAS on IRP - The client should reach out to the existing client servicing team or write to eyirp@in.ey.com for further details and solution demo.
