What is B2B E-Invoicing and how is an E-Invoice different from a normal invoice?

A B2B (Business-to-Business) transaction occurs when two businesses engage in a commercial exchange. An invoice serves as the official record of this transaction, detailing all relevant information, including services/products provided, item codes, transaction date, and the identities of both parties involved.

In the context of GST-registered societies, a B2B Invoice is the crucial document issued to GST-registered houses or debtors. It serves as proof of sale for services or products provided by the society, facilitating accurate record-keeping and compliance with GST regulations.

Traditionally, societies have issued invoices or credit notes for all houses and subsequently declared their income to GST authorities via the R1 filing in the following month. This practice remains unchanged for GST unregistered houses.

However, for transactions involving GST-registered houses, income declaration must now occur concurrently with or within two days of invoice generation. In response, GST authorities issue a Unique Invoice Reference Number (IRN) for each invoice or credit note.

To comply with e-Invoicing regulations, the IRN, along with its corresponding QR code, must be mandatorily printed on the invoice/credit note PDF.