Everything You Wanted to Know About E INVOICING

 

One of the greatest and most prominent modifications to the GST in 2020 has been the introduction of einvoice. The integrated approach to e-invoicing was favourably appreciated by all taxpayers notwithstanding the use of proprietary invoicing systems.

What is E-invoicing?

E-invoicing under GST  is a system in which normal B2B invoices are electronically authenticated by GSTN before being used on the central GST system. Through the Invoice Registration Portal (IRP) or  e invoice portal of the GST Network (GSTN), a unique number or identification (IRN) number is issued for each such receipt. This process is also known as E-invoicing or e-invoice under GST.

Reason behind the implementation of GST e invoice system.

The main reason behind the implementation of the e invoice system is to increase businessmen's or companies' level of transparency. The extent of tax evasion can be reduced if the government receives online and instantaneous information about all of the transactions taking place between them. Specifically to prevent using false bills for claiming the input tax credits.

Many times, people misinterpret the term "e GST invoice" to indicate creating an invoice through the GST system. In actuality, though, it just entails having the receipts (often generated invoices) produced by any ERP or accounting programme confirmed (authenticated) by the GST Network (GSTN). Only after a receipt has been verified is an IRN number (Invoice Reference Number) assigned.

Key benefits of einvoices

• Invoicing information will be reported once for all of your GST filings.
• E-way Bill generation with a part A and part b slip will be seamless
• The standard invoicing system means interoperability between multiple software
• Real-time tracking of invoices 
• Smooth invoice reconciliation
• Simple and accurate ITC claim

What part does ERP software play in e invoice generation?

The process of creating the invoices and switching to the government portal to print the IRN on them is tedious. e invoice software provides a comprehensive solution to generate e-invoices in a hassle-free manner. Diverse business needs are addressed with the help of India's best e invoicing software as you can generate and manage GST-compliant invoices online. Multiple or bulk invoices can be generated easily with the help of software

The benefit of an electronic invoicing system 

• Create challans online and submit them right away.
• Data validation of invoice 
• Easily track outstanding e-invoices

Who needs to generate E-invoices?

Currently, enterprises or companies with a turnover of more than Rs 20 crore are required to use electronic invoices for B2B (business-to-business) transactions.

How to create an electronic invoice

• Create an invoice using any ERP or accounting programme.
• That receipt will receive an IRN number.
• Create invoice QR code

On your behalf, the data in the electronically signed invoice is accessed or transmitted to the online GST system. This data gets automatically entered in the return GSTR-1 of the supplier of the commodity. The buyer's return GSTR-2B/2A also automatically records this information. because every registered businessman's GST account is linked to every other GST number.

Consequences of non-generation of IRN or e-invoice 

A company or business having a turnover cap specified by the government will be punished if it does not implement the e-invoice system. Either the full amount of unpaid tax can be collected from them, or a fine of Rs 10,000 per invoice can be imposed. He must pay whichever of these two amounts is larger. Additionally, if they send out bills without a signed QR code and IRN number, those invoices will be regarded as inaccurate and incomplete receipts. A penalty of Rs 25,000 will be assessed on every receipt for anyone who does this.