GST Changes for E-invoicing w.e.f. 01 January 2021

As per the GST guidelines, effective from 01 January 2021, all B2B invoices raised in the month of January will need to be registered on the Invoice Registration Portal (IRP). Therefore, the invoices for the billing period of 1-30 December will be raised by Razorpay on 31 December. The next billing cycle will include charges borne on 31 December 2020.

FAQs

1. What is e-invoicing under GST?

E-invoicing is a system in which B2B invoices are electronically authenticated via the common GST portal. Once an invoice is electronically authenticated on the IRP, it is issued a unique identification number called the IRN. This eliminates the need for manual data entry while filing GST-1 return, as the information will be passed directly from the IRP to the GST Portal.

Razorpay B2B invoices raised in January 2021 will include an IRN and a QR code, as can be seen below:

2. Who is `e-invoicing` applicable to?

If you have updated your GSTIN on your Razorpay Account, B2B invoices raised in January 2021 for the billing period of 31 December 2020 to 31 January 2021 will be registered on the GST Invoice Registration Portal.

If you have not updated the GSTIN, you will receive a B2C invoice. This invoice does not need to be registered on the IRP as of now.

3. What are the changes applicable from 01 January 2021?

Any invoice raised in the month of January 2021 will need to be registered on the GST IRP. The IRP will issue the invoice a QR code and an IRN.

4. Why is this change occurring?

All the invoices raised in January 2021 will be registered on the IRP. Hence, it is necessary to raise an invoice for the December billing cycle in December to allow you and Razorpay to be GST compliant.

Ensure that your GSTIN, address and PIN code available on the Razorpay Dashboard is up to date. You can update these by raising a request with our

Support team

If your GSTIN, address and PIN code are not up to date, we may not be able to register your invoice on the GST portal, leading to non-compliance. This may affect any GST input credit you may be availing.

5. Why has 31 December 2020 not been added to the billing cycle of December?

Due to the guidelines, any invoice raised in January 2021 must be registered on the GST IRP. Therefore, to minimise impact, the invoice for the billing period of 1-30 December 2020 will be raised by Razorpay on 31 December.

Charges for Razorpay’s services for 31 December will be billed in the cycle of 31 December to 31 January in order to be GST compliant.