Tax and SAP add-ons

Services and Products

India and e-invoicing and e-waybill reporting and GST return & reconciliation

The Indian government rolled out the electronic invoicing system for all business-to-business (B2B) transactions under the Goods and Services Tax (GST). The government introduced the e-invoicing system in a waved approach, and the first selected are businesses with an annual turnover of over Rs 500 crore. Four such significant taxpayers (large MNCs) KGT supported, and those companies have the solution operational.

By January 1, 2021, taxpayers will be available with an annual turnover of over Rs 100 crore. KGT has a proven solution and a process to implement quickly. India: e-invoicing starting October 1, 2020

The Indian Goods & Services Tax Council has proposed a revised plan for the roll-out of live e-invoice reporting from 2020 of business to business (B2B) and businesses to consumers (B2C) invoices to the GST System.

A requirement is that an e-invoice is created in the taxpayer SAP system. The taxpayer submits that GST e-invoice to the 'Invoice Registration Portal' (IRP). That IRP of GST will generate a unique Invoice Reference Number (IRN), and digitally sign the e-invoice and generate a QR code. The digitally-signed invoice will be processed in the GST Network and e-waybill system within 24 hours. The taxpayer is returned the IRN. The customer is issued with the approved invoice. The invoice will be sent to both the buyer and seller mail IDs that are provided in the invoice. The aim is of e-invoicing introduction is to avoid VAT fraud such as fake invoicing:

  • Better taxpayer services: one time reporting on B2B invoice data in the form it is generated to reduce reporting in multiple formats
  • Reduction of tax evasion: system level matching of input credit and output tax
  • Efficiency in tax administration: elimination of fake invoices

We have developed an SAP-integrated solution with the cockpit to select reportable outgoing invoices, create periodic Indian e-invoicing, E-submission of Indian JSON files, and control reports and the functionality. Although not yet a mandatory requirement, the solution is ready for FI invoicing.

We can add the QR Code, IRN, into the SAP script. The other key GST process features we developed for optimum GST management are electronic waybill ('E-way bill'), GST returns, GST reconciliations, and GST input credit utilization against its eligibility.