E-invoice – Schema / Contents:

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1.What is e-invoice schema?

‘Schema’ simply means a structured template or format. ‘e-invoice’ schema is the standard format for electronic invoices. It is notified as ‘Form GST INV-1’.

2. Why is an e-invoice standard/schema required?

• Presently, businesses are preparing/generating invoices in their respective ERPs/Accounting/Billing Software. All these software have their own format of storing the data of invoices. Thus, the e-invoice generated by one system is not understood by the
other, thereby necessitating data entry efforts and consequent errors and reconciliation problems.
• ‘Schema’ acts as a uniform standard for ERP/ Billing/Accounting software providers to build utility in their solution/package to prepare e-invoice in notified standard thereby ensuring e-invoice generated by any ERP/Accounting and Billing Software is correctly understood by another ERP/Accounting software. This is also required for ensuring
uniformity in reporting to IRP.
• Schema ensures e-invoice is ‘machine-readable’ and ‘inter-operable’, i.e. the invoice/format can be readily ‘picked up’, ‘read’, ‘understood’ and further processed by different systems like Oracle, Tally, SAP, etc.

3. What is the basis of e-invoice schema?

e-invoice Schema is based on PEPPOL/Universal Business Language (UBL) with certain customizations to cater to Indian business practices and legal requirements.

4. Is there different invoice schema for different sectors/businesses, e.g. Traders, Manufacturers, Service Providers, Professionals, etc.?

No. e-invoice schema is a single standard applicable to all businesses in the country. Many optional fields are available in the schema to cater to the requirements of specific businesses and practices followed by industry and trade in India.

5.What is the file format in which invoice has to be reported to IRP?

Invoice details in the prescribed schema (INV-01) have to be reported to IRP in JSON format.
‘JSON’ stands for JavaScript Object Notation. It can be thought of as a common language for systems/machines to communicate with each other and exchange data.
As the ERP or Accounting software will generate it, taxpayers need not worry about it. This format is also used in the GST system for reporting all data to GST System.

6. What are the various types of fields in the e-invoice schema?

a. Data for fields marked as ‘Mandatory’ have to be provided compulsorily.
b. A mandatory field not having any value can be reported as NIL.
c. Fields marked as ‘Optional’ may or may not be filled up. Many of these are relevant for specific businesses (e.g. Batch No., Attributes, etc.) and to cater to specific scenarios (e.g. export, e-way bill etc.).
d. Some sections in the schema are marked as ‘Optional’. But, if this section is selected, some of the fields may be mandatory. For example, the section ‘e-way Bill Details’ is marked as optional. But, if this section is chosen, the field, ‘Mode of Transportation’ is mandatory.

7.What is ‘cardinality’, as mentioned in schema?

In e-invoice schema, for each field, ‘Cardinality’ is marked as 0..1 / 1..1 / 1..n / 0..n. This is to denote whether a field is ‘mandatory’ and whether it is ‘repetitive’.
Notation Meaning
Starts with 0 Optional field
Starts with 1 Mandatory field
Ends with 1 Data for the field can be entered only once
Ends with n Data for the field can be entered multiple times

8.Can the supplier place their entity logo on e-invoice? Is this part of the schema?

Elements of invoice which are internal to business, such as company logo, etc. are not part of e-invoice schema.
After reporting invoice details to IRP and receipt of IRN, at the time of issuing the invoice to the receiver (e.g. generating as PDF and printing as paper copy or forwarding via e-mail, etc.), any further customisation, i.e. insertion of company logo, additional text, etc., can be made by respective ERP/billing/accounting software providers.

9. What is the maximum number of line items that can be reported in an invoice?

The limit is kept at 1000 presently. It will be enhanced based on requirements in the future.

10. In the e-invoice schema, the amount under ‘other charges (item level)’ is not part of the taxable value. However, some charges to be shown in the invoice are leviable to GST.
How to mention them?

Such other charges (taxable), e.g. freight, insurance, packing & forwarding charges, etc. may be added as one more line item in the invoice.

11.In the e-invoice schema, there is no placeholder for mentioning TCS (Tax Collected at Source) collected by suppliers under the Income Tax Act, 1961.

At present, there is no separate placeholder for this field in the schema. Including it in the schema will be examined in the next round of revisions.
However, as a workaround, the field of “Other Charges (Invoice Level)” can be used to mention TCS where it doesn’t form part of taxable value.
It may further be noted that the INV-01 schema is only to report specified invoice particulars to IRP. Once IRN is obtained from the portal, the business may add any other elements not relevant to GST, while issuing an invoice finally to the buyer.

12.In the current schema, there is no provision to report details of supplies not covered under GST, e.g. a hotel wants to give single invoice for a B2B supply where the supply includes food and beverages (leviable to GST) and Alcoholic beverages (outside GST).

For items outside the GST levy, separate invoices may be given by such businesses.

13.The field “Differential Percentage” of the tax rate is not available in the schema, which is applicable to “Leasing of vehicles purchased and leased prior to July 1, 2017”.

This is not relevant/applicable after 30.06.2020

14.In the case of Credit Note and Debit Note, is there any validation w.r.t referred invoice number?

No linkage with invoice is built, in view of the amended provisions of GST.

53.Some HSNs which are otherwise valid is not accepted by the e-invoice portal.

HSN directory is being aligned with GST System, so that it is updated and uniform on all systems, viz. Customs (ICES), GST System, e-way bill system, and e-invoice system.