Skip to content
Innoventry
← Back to help

GST Invoicing, E-Way Bill & E-Invoicing Compliance

Innoventry ERP is built natively for Indian Goods and Services Tax (GST) compliance. It automates Place of Supply (POS) rules, HSN/SAC code mapping, multi-tier tax computations, E-Way Bill generation, E-Invoicing (IRN), and monthly GSTR report generation.

1. Automatic GST Tax Determination (CGST/SGST vs IGST)

The tax engine dynamically resolves the tax liability on every transaction line without manual calculation.

  • Intra-State Supply (Same State):
    • When your company's state and the customer's / vendor's state are the same.
    • System splits the applicable tax rate evenly into Central GST (CGST) and State GST (SGST) (e.g., an 18% item is billed as 9% CGST + 9% SGST).
  • Inter-State Supply (Different State):
    • When the customer or vendor is in a different state.
    • System applies the full tax as Integrated GST (IGST) (e.g., 18% IGST).
  • Place of Supply (POS):
    • By default, the POS is derived from the customer's registered GSTIN state.
    • For walk-in retail customers or multi-branch clients, the operator can override the POS state directly on the invoice.

2. HSN & SAC Code Setup

Harmonized System of Nomenclature (HSN) codes for goods and Services Accounting Codes (SAC) for services ensure statutory tax categorization.

  • Desktop Navigation: Setup > Tax Configuration > HSN / Tax Rates
  • Web / Mobile Route: /main/master/newItem (HSN field)

Setup Procedure

  1. In the Item Master, enter the 4-, 6-, or 8-digit HSN Code (e.g., 8471 for computers, 6203 for garments).
  2. Select the Tax Group (e.g., GST 18%, GST 12%, GST 5%, Exempt).
  3. During billing, the system prints the HSN code and its tax breakup on every invoice line, automatically generating the mandatory HSN Summary table.

3. Composition Scheme Invoicing (Bill of Supply)

Businesses registered under the GST Composition Scheme do not collect tax from customers and issue a Bill of Supply instead of a Tax Invoice.

  • Configuration: In Setup > Configuration > Company Profile, set GST Registration Type to Composition.

Invoicing Behavior

  • The invoice header prints "Bill of Supply - Composition taxable person not eligible to collect tax on supplies".
  • No tax columns (CGST/SGST/IGST) are charged to the buyer.
  • The seller pays a flat composition tax (e.g., 1% for traders/manufacturers, 5% for restaurants) directly on total turnover.

4. Reverse Charge Mechanism (RCM) Invoicing

Applies when purchasing from unregistered suppliers, hiring Goods Transport Agencies (GTA), or acquiring legal services where the recipient is legally required to pay GST to the government.

  • Desktop Navigation: Inside the Purchase Bill, check Is RCM Applicable.

Accounting & Tax Outcome

  1. The invoice records taxable value without charging tax to the vendor payable ledger.
  2. The system creates automatic tax entries:
    • Debit: RCM Input Tax Credit (ITC) Account.
    • Credit: RCM Output Tax Liability Account.
  3. The transaction is routed directly to GSTR-3B Table 3.1(d) (Supplies liable to reverse charge).

5. E-Way Bill Generation & JSON Export

Mandatory for movement of goods where the consignment value exceeds ₹50,000 (or state-specific threshold).

  • Desktop Navigation: Transactions > Sale (click Generate E-Way Bill in invoice)
  • Web / Mobile Route: Direct E-Way sync or export panel in invoice view.

Step-by-Step Procedure

  1. Create and save the sales invoice or delivery challan.
  2. Click Generate E-Way Bill:
    • Transportation Details: Enter Transporter ID (GSTIN), Transporter Name, and Vehicle Number (e.g., MH-12-AB-1234).
    • Transport Mode: Road, Rail, Air, or Ship.
    • Approximate Distance (in KM): Enter distance between dispatch address and delivery destination pin codes.
  3. Click Generate / Export JSON:
    • The system validates all mandatory fields (pin codes, HSN codes, vehicle numbers) and exports a government-compliant .json file.
  4. Upload the JSON file to the official NIC E-Way Bill portal (ewaybillgst.gov.in) for instant generation, or click Direct Sync if configured with API credentials.
  5. Record the generated 12-digit E-Way Bill Number on the invoice for transport documentation.

6. E-Invoicing (IRN Generation & QR Code)

Mandatory for businesses with annual aggregate turnover exceeding the government's statutory threshold.

  • Desktop Navigation: In invoice view, click Generate E-Invoice (IRN).

Operational Flow

  1. Save the B2B sales invoice or credit/debit note.
  2. Click Generate E-Invoice:
    • The system sends the standardized payload to the Invoice Registration Portal (IRP).
    • The IRP validates the payload and returns a unique 64-character Invoice Reference Number (IRN), Digital Signature, and Signed QR Code.
  3. Innoventry prints the official signed QR code and IRN directly in the header of the printed invoice.

7. GST Statutory Audit Reports (GSTR-1 & GSTR-3B)

  • Desktop Navigation: Reports > GST Reports > GSTR-1 (or GSTR-3B)
  • Web / Mobile Route: /main/report/taxWiseSaleRegisterReport

Report Modules

  • GSTR-1 Summary:
    • Table 4 (B2B Invoices): Supplies to registered taxable persons with GSTINs.
    • Table 5 (B2C Large): Inter-state supplies to unregistered persons with invoice value > ₹2.5 Lakhs.
    • Table 7 (B2C Small): Intra-state and small inter-state retail supplies grouped by state and tax rate.
    • Table 9 (Credit / Debit Notes): Details of sales returns and price revisions.
    • Table 12 (HSN Summary): Total quantities, values, and tax breakdown by HSN code.
    • Table 13 (Document Summary): Serial numbering ranges of invoices issued, cancelled, and net active.
  • GSTR-3B Summary:
    • Summarizes monthly Outward Tax Liabilities minus eligible Input Tax Credit (ITC) to determine net tax payable before filing.
GST Invoicing, E-Way Bill & E-Invoicing Compliance — Help | Innoventry