E-invoicing is slowly being extended to more and more businesses. E-invoicing is no new concept. Introduced in the year 2020, E-invoicing promises to eliminate all types of GST frauds. How? E-invoicing ensures all your invoices are made using a unique invoice Registration Number (IRN) generated from the IRP (invoice Registration Portal) after verifying its genuinity.
It was first introduced for B2B businesses with annual turnover of more than 500cr. And later businesses with lesser turnover were included. In this way the government has been introducing the E-invoicing system for businesses in a phased manner. The government has made sure all businesses have mandatorily adapted the required systems and process for e-invoicing.
Starting from 1st January 2023, the GST council has decided that businesses having an annual turnover more than 10cr will also be eligible for E-invoicing.
E-invoicing process has been efficiently included in Tally Prime and thus users can easily adapt to the statutory requirements of the GST council.
While E-invoicing has been introduced as a mandate for businesses, here's how E-invoicing will help you and your business -
Claiming input tax credit is faster due to e-invoicing as the invoices are verified on a real time basis. Previously, businesses would file their returns as per the deadline and after the deadline, the GST council would verify and then allocate the ITC. This process will now be quicker and more business-friendly.
All invoices once authenticated by the invoice registration portal (IRP), do not need to be re-entered or filed again. A lot of man-hours are saved and businesses can focus and spend more time on their important work than just trying to be statutorily compliant.
Easy E-way Bill Creation
E-way bills can be created at the time of E-invoicing itself. This allows you to finish two processes at the same time.
After creating E-invoices, the GST portal sends the buyer the invoice and thus he/she can reconcile, accept or reject the invoice. On a real time basis, the buyer can verify and reconcile the invoices thus saving time for both the buyer and seller.
All E-invoices have a unique QR code that contains invoice specific information. In case of any misplaced invoice, users can scan this QR code and get the invoice in a PDF format.
Reduction in Frauds
Frauds like false ITC claims have reduced considerably after the introduction of E-invoicing. Now that more businesses will come under the radar of E-invoicing, frauds will likely be reduced to a higher extent.
E-invoicing is great for progressive businesses and once implemented it will reduce your time spent on accounting for statutory purposes. Hope this blog helps you clear some concepts about e-invoicing. Know more about Tally Prime with E-invoicing here.