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e invoicing schema

Introduction:

The Government has implemented e Invoicing under GST for large enterprises from October 1st 2020 as a step towards digitalization.

e-Invoices are to be generated within the ERP but in a specified format/SCHEMA.

SCHEMA Format has various mandatory & optional fields and you must keep these in mind while creating the e-Invoice.

This is because the IRP will validate your e-Invoice for these fields as well, so it becomes essential to furnish all the mandatory fields & understand the SCHEMA Format.

Here is a detailed break-down of the e Invoicing under GST SCHEMA Format & everything you need to know.

Watch our video on e-Invoice Generation Process From GSTHero Dashboard

e Invoicing under GST - An Introduction

So, e Invoicing under GST is the method of generating & managing Invoices in an advanced & electronic fashion.

e Invoicing under GST will apply to large Enterprises for now, & later, will get extended to other businesses as well, by April 2021.

Currently, e-Invoices are applicable to all businesses having an annual aggregate turnover of Rs. 500 Crores and above. But by December 2020 e Invoicing under GST will also apply to all businesses having an annual aggregate turnover of Rs. 100 Crores and above.

And as per the Government’s plan, by April 2021, GST e Invoicing will be a mandatory provision for all businesses, other than a few exceptions.

For now, these big businesses are required to generate invoices in the SCHEMA Format with all the mandatory fields furnished & then upload it to the IRP for validation.

The IRP will validate the invoice & check the GSTINS, the mandatory fields & a few other details & then generate a unique IRN & QR Code upon successful validation.

e Invoicing under GST is all about B2B Invoices, nonetheless, you will also have to report B2G, Export, & Reverse Charge Invoices, Credit Notes & Debit Notes, to the IRP.

The same SCHEMA format shall apply to all types of invoices, supplies & business, however the mandatory fields will vary accordingly.

Contents of an e-Invoice under GST

Contents of an e-Invoice

An e-Invoice contains details & information of the transaction including the details of both the supplier & the recipient.

Apart from the details of both the parties, an e-Invoice also contains multiple Mandatory & Optional Fields.

Recently, the Government has revamped the SCHEMA Format adding & removing various fields. The current e-Invoice format contains 30 mandatory fields while the previous one had 50 of them.

The Mandatory fields are distributed into 5 Major Sections-

  • Basic details
  • Supplier’s information
  • Recipient’s information
  • Invoice item details
  • Document total
  • Additionally, there are two mandatory Annexures namely-

    • Invoice Item Details
    • Document Total Details

    Note- Each invoice can only have 100 Line items.

    The IRP validates your GST e-Invoices for the mandatory fields & annexures majorly hence you must prioritize furnishing these fields at the least, & in case the value in the mandatory fields is zero, mention NIL instead of leaving the fields blank.

    The e Invoicing under GST SCHEMA Format & List of Mandatory Fields

    The SCHEMA is a guide to help the users understand the various parts of an e-Invoice. Following are the content of the e-Invoice SCHEMA to ease your understanding & navigation-

    Defined Columns

    Meaning

    Technical name of the field

    This contains the section names, line items, annexure names, and sub-entries

    Cardinality

    This column indicates whether the item is mandatory or optional. Additionally, it also clarifies the recurrence of the item, meaning whether the items can be repeated or not, with the help of codes. The codes are as follows:


    0..1 – Optional, but cannot be repeated while reporting

    1..1 – Mandatory and cannot be repeated

    1..n – Mandatory and can be repeated more than once

    0..n – Optional, and can be repeated more than once while reporting.

    Brief description of the field

    This simplifies the intent of the technical field name mentioned in the e-Invoice

    Whether mandatory/optional

    This column indicates whether filling the particular item is mandatory or optional

    Technical field specification

    This column indicates the maximum length of the field- date format, and decimal places are elaborated here

    Sample values of the field

    This column simplifies all the columns for the user by giving an example or sample values

    Explanatory notes

    A detailed explanation of the intent of any line items is given here, indicating the meaning & what details are to be furnished in the same.

    Now, as per the last notification given by CBIC, dated July 30th, 2020, there are 30 mandatory fields that you must furnish in the e-Invoice to achieve 100% successful validation.

    The mandatory fields along with a sample input are mentioned below for your reference-

    No.

    Name of the field

    List of Choices/ Specifications/Sample Inputs

    1

    Document Type Code

    Enumerated List such as INV/CRN/DBN

    2

    Supplier Legal Name

    String Max length: 100

    3

    Supplier GSTIN

    Max length: 15 Must be alphanumeric

    4

    Supplier Address

    Max length: 100

    5

    Supplier Place

    Max length: 50

    6

    Supplier State Code

    Enumerated list of states

    7

    Supplier Pin code

    Six digit code

    8

    Document Number

    Max length: 16 Sample can be “ Sa/1/2019”

    9

    Preceding Invoice Reference and date

    Max length:16 Sample input is “ Sa/1/2019” and “16/11/2020”

    10

    Document Date

    String (DD/MM/YYYY) as per the technical field specification

    11

    Recipient  Legal Name

    Max length: 100

    12

    Recipient’s GSTIN

    Max length: 15

    13

    Recipient’s Address

    Max length: 100

    14

    Recipient’s State Code

    Enumerated list

    15

    Place Of Supply State  Code

    Enumerated list of states

    16

    Pin code

    Six digit code

    17

    Recipient Place

    Max length: 100

    18

    IRN- Invoice Reference Number

    Max length: 64 Sample is ‘a5c12dca8 0e7433217…ba4013 750f2046f229’

    19

    Shipping To GSTIN

    Max length: 15

    20

    Shipping To State, Pin code and State code

    Max length: 100 for state, 6 digit pin code and enumerated list for code

    21

    Dispatch From  Name, Address, Place and Pin code

    Max length: 100 each and 6 digit for pin code

    22

    Is Service

    String (Length: 1) by selecting Y/N

    23

    Supply Type Code

    Enumerated list of codes Sample values can be either of B2B/B2C/ SEZWP/S EZWOP/E XP WP/EXP WOP/DE XP

    24

    Item Description

    Max length: 300 The sample value is ‘Mobile’ The schema document refers to this as the ‘identification scheme identifier of the Item classification identifier’

    25

    HSN Code

    Max length: 8

    26

    Item Price

    Decimal (12,3) Sample value is ‘50’

    27

    Assessable Value

    Decimal (13,2) Sample value is ‘5000’

    28

    GST Rate

    Decimal (3,2) Sample value is ‘5’

    29

    IGST Value, CGST Value and SGST Value Separately

    Decimal (11,2) Sample value is ‘650.00’

    30

    Total Invoice Value

    Decimal (11,2)

    Sample e-Invoice for you! 

    Here is a sample of an e-Invoice, generated using the best GST Software, GSTHero-

    e Invoice

    Most Salient Points about the e-Invoice SCHEMA - Do not ignore these!

    Now, that you are familiar with the e-Invoice schema, here are the SCHEMA related features & facts that you must note while creating an e-Invoice-

    1. 1
      The IRP will validate the e-Invoice mainly for mandatory fields, Party Details, Taxable Values, Tax Values, HSN, Duplicate Serial Numbers, etc.
    2. 2
      Your e-Invoice will be rejected if- mandatory fields are missing or if the values in the mandatory fields are incorrect.
    3. 3
      An e-Invoice will be signed digitally only after all the mandatory fields & other details are correctly furnished.
    4. 4
      Upon successful validation, the IRN & QR Code will be generated, these are unique for an Invoice.
    5. 5
      An Invoice can only have 100 line items
    6. 6
      An e-Invoice without authentication, IRN & QR Code will not be considered valid or legal
    7. 7
      The SCHEMA will help taxpayers to read invoices in multiple ERPs, making invoices standard.
    8. 8
      There is a specific field for mentioning the e-Way Bill details in the Format, by furnishing this field you can generate both Part-A & Part-B of the e-Way Bill.
    9. 9
      The SCHEMA does not have a specified space for your company logo, you can place it anywhere in the e-Invoice. Also, if you are taking the help from GSPs, ASPs, or other third party software you can custom specify a spot for your company logo.
    10. 10
      The Schema does provide specified space to place your digital signature & you must place your signature there itself.

    About the author

    Atish Dhavale is a GST Expert. He has vast knowledge of Goods and Services Tax related regulations including GST Return Filing, e-Invoicing, e-way bill. He holds more than 2 years of experience in GST Compliance. He has served in the taxation industry for GST Return Filing and compliance and has been closely associated with Tax Managers, Accounting Teams, Chartered Accountants, CFOs, and other teams in the same domain. He has also recorded 200+ videos on GST related topics on Youtube for a channel named "GSTHero Videos".

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