E-invoicing System: Helping Biz to Manage GST Compliance Easily

The launching of e-Invoicing has been a game-changer considering the facts and circumstances in India. It has been a sort of new revolution that shall transform and smoothen.

• Invoicing Process
• Revamped Tax Reporting
• Fuel the Interoperability of the Direct and Indirect Ecosystem

Let’s understand the aforesaid transformation with the statistics related to eight months posts the launch of e-invoicing. There are nearly one lakh suppliers who have utilized e-invoicing mechanism:

• 36,910 taxpayers with a turnover of over ₹500 crores.
• 52,595 taxpayers in the ₹100-500 crore bracket are successfully generating e-invoices.

The above-mentioned figure constitutes a big chunk of the total number of transactions (Online and Offline) and tax revenue generation. Besides, in the forthcoming months, the government may extend e-invoicing to all businesses for the purpose of making our economy a digital economy.

Learning GST E-invoicing System

This is a learning for those who are new to e-invoicing. E-invoicing is a mechanism of digitally generating and reporting invoices in real-time to the government. It includes within its purview the origination of an invoice on the accounting system of the taxpayer and then reporting the same to the Invoice Registration Portal (IRP).

Consequently, the IRP shall generate an Invoice Reference Number (IRN) and QR Code, and thereafter digitally sign the invoice. This invoice sent back to the taxpayer is called an electronic invoice or e-invoice.

• It is worth mentioning here that in India, E-invoicing is mandatory for businesses with a turnover of Rs 50 crore or more.
• The benefit of e-invoicing Get to know about the new E-invoice generation system on government GST portal with applicability. The system mandates to generate e-invoice for every sale by a registered business. Read more is that the practice of fraudulent taxpayers using fake invoices shall be curbed.

The Relation Between Direct & Indirect Tax Collections

To date, there is not any mechanism to link direct and indirect tax collections
In other words, there is the absence of any linkage between the revenues that businessman disclose in their income tax and GST returns Get to know the online procedure of filing GST return in India. Also, we provide each and every GST form according to the taxpayer’s category. Read more . E-invoicing shall make it possible.

Basic Advantages to Taxpayers and Businesses

The e-invoicing shall replace the manual efforts with an automated system and It shall save many resources time, money, and effort. Manual reconciliation efforts shall be saved. In consequence, organizations that have adopted e-invoicing shall be able to cut down compliance costs in the long run. Lastly and most importantly, time shall also be saved.

So e-invoicing is a step towards the digital economy and is itself a revolution.