An e-invoice is often confused with a digital invoice however in reality, it is a lot more than that. It is an electric mechanism under GST which is made by taxpayers and it is reported to the GST system. Electronic Invoicing is the main one of the very most talked about changes when it comes to GST in 2020-21. It is the present and the future of invoicing. Regardless of the established way of preparing invoices, e-invoicing was used good spirit by the entire taxpayers.
Before we just do it, we need to understand what distinguishes an e-invoice from other invoices.
What’s an e-invoice?
An e-invoice is often confused with an electronic invoice however in reality it is much more than that. It really is an electric mechanism under GST which is made by taxpayers which is reported to the GST system. All B2B invoices made have to be registered with the Government system i.e. the Invoice Registration Portal (IRP) & obtain an unique number i.e. Invoice Reference Number (IRN) & QR code which will be the most vital areas of an e-invoice.
Once the invoice is authenticated, the facts will probably be offered by the GST portal & EWB portal at the true time
By e-invoicing, some Unnecessary steps like data entry, accuracy checks & swapping platforms are eliminated. For more information, visit الفاتورة الإلكترونية
Why don’t we now understand the procedure of fabricating an e-invoice
Many taxpayers have a convinced that they need to take action extra and beyond their existing business practices to generate an e-invoice but that’s not the case.
The creation of e-invoice is very simple. Actually, the taxpayers will continue steadily to issue their invoices very much the same that they have been practicing till now.
Really the only change that is required from a billing, accounting and ERP software companies which can make certain changes at their backend so the software that you are using to issue invoices can push the invoices to the IRP.
The IRP will assign the IRN to the invoice, digitally sign and send it back with a QR code to the billing & accounting software.
The QR code will contain all the fundamental details like the supplier GSTIN, buyer GSTIN, description of goods and services being supplied, value etc.
This might have clarified how simple the e-invoicing system is.
Let’s take a look into the benefits of E-invoicing
It’s provides you user-friendly tools that allow you to customize the document based on the requirements. It reduces enough time open the spreadsheet and edit the modules for the perfect layout.
- Delivering & Receiving e-invoice
In the event that you send a pdf of invoice to your customer, they’ll need to examine it and import it with their ‘Accounts Payable’.
However when you send an e-invoice, it’ll directly come in their Account Payable where they can accept, pay and then achieve it within the software.
- E-invoice brings Transparency
As only authenticated invoices with Invoice Reference Number (IRN) shall be uploaded, an e-invoicing system brings more transparency in reporting.
- Unique IRN & QR code
IRN proves the authenticity of invoice and QR code allows to quickly access the invoice details & information. Once the recipient scans the QR code, he’ll have the ability to see all the relevant information of this invoice in their system.
- Claiming Accurate ITC
With the e-invoicing system, no invoices will be hidden or missed from the system. The reconciliation will be accurate and detailed which would help the taxpayers in claiming maximum ITC.
- Reduces Cost
Why waste resources like paper when you can send documents electronically? Right?
With paperless invoicing, you are saving in some recoverable format costs and courier charges for sending the invoices physically to the recipients.
- Decrease in human errors
The e-invoicing process is fully automated. Hence, reduces human intervention & brings more accuracy in the invoice generation & GST filing.
Beneath the e-invoicing system, the invoice is uploaded on a common portal which facilitates multipurpose reporting. It’ll get rid of the need of data entry and also reduce data entry errors.
- An eye on Invoices
It really is a lot much easier to keep a track on information like when the invoice was sent, viewed and paid through e-invoicing software.
- Easily customizable
Now you do not need to waste your time and effort in editing the spreadsheet modules. Get easily customizable industry-specific invoice templates which makes it look more
- Increased Data Integrity
One of the primary advantages of e-invoices is the fact that it reduces the chance of fraudulent bills. The authenticity of e-invoices is automatically validated.
- Higher degree of control
The advantage of using online e-invoicing software is that everything is saved using one platform which is easily accessible anywhere & anytime. Also, you’ll be getting a synopsis of your invoicing through analytics and automated reports.
- Advantages of Buyers
When an e-invoice is uploaded on GST portal for authentication, it will be shared with the buyer to reconcile his purchase and accept / reject the invoice over a real- time basis.
- Onetime reporting B2B invoices
A taxpayer must report the invoices only once & obtain it authenticated by Invoice Registration Portal which in turn issues the Invoice Reference Number (IRN).
The facts will be auto-populated to the GST Return & reduces the manual reporting process.
- Seamless invoice transmission
The recipient would receive the e-invoice automatically either through mail or through separate messaging platforms
Implementing an e-invoicing system is highly good for any business. And that is the reason Electronic invoicing is increasingly utilized all across the world every day. In addition, it supports the digitization of the economy and the business enterprise can get the maximum fruit out of the IT infrastructure.