by e-Invoice, a digital system, is part of India’s GST framework. It simplifies and automates invoicing, replacing paper invoices with electronic ones that are securely stored and validated. e-invoices are shared directly with the GST portal, enabling tax authorities to monitor transactions in real-time. This streamlines GST compliance and enhances transparency. Jump into this article to discover how e-invoicing software makes it easy to adhere to the existing tax laws.
The Invoice Registration Portal (IRP) verifies invoices and assigns unique Invoice Reference Numbers (IRNs) to businesses using e-invoicing. This information is then automatically reflected in the GSTR-1 tax return upon login. So, there is no need for manual reporting like in earlier days.
The best e-invoicing software automates the printing of invoice reference numbers and QR codes. It also assists in enabling the cancellation process. You will be able to provide details related to cancellation directly using the tool.
When creating an e-invoice, taxpayers can also create an e-way bill. However, they may choose to generate the e-way bill later. An e-invoice is required to validate an e-way bill.
Despite the introduction of e-invoicing, e-way bills remain relevant. They are still necessary to document the transportation of goods and serve as crucial documents in this process.
To create an e-way bill, taxpayers must submit vehicle details through e-invoicing. The GST portal will automatically transfer the required information from the authenticated e-invoice to Part A of the e-way bill.
Even without an internet connection, an effective e-invoicing software system will allow you to keep processing e-invoices. During temporary internet or power outages, this feature is crucial. You can export the invoice details in JSON format and upload them to the appropriate authorities later when the internet connection is restored.
Businesses are required to generate invoices on time to comply with GST regulations. Most e-invoicing tools allow for individual invoices to be created as part of voucher entry. However, the best GST software solutions simplify compliance by enabling bulk invoice generation. With the best e-invoicing tools, businesses can quickly and easily generate multiple invoices simultaneously.
In the e-invoicing system, invoices are saved to a shared platform, facilitating comprehensive reporting. After verification, invoices are instantly sent to the GST and e-way bill portals. This automated data transfer eliminates manual entry during GST return filing and minimises errors. Verified e-invoices are ported into the relevant GST return.
After validation, they become accessible for review and action by the recipient under the updated return system. The tax authority aims to pre-populate GST returns, eliminating reconciliation issues. After e-invoicing implementation, invoice data can be seamlessly integrated into GST returns.
When an IRN is created, regardless of whether it has an e-Way Bill, the primary action is to share the invoice with the customer. The invoice must at least include the QR code with a digital signature. Your e-invoicing software should enable you to print the invoice with the QR code and email it to the appropriate parties, streamlining the process.
The GST council’s electronic invoicing approval has enabled software solutions interoperability. e-Invoices, generated in a standardised format, can be effortlessly decoded by different software systems. This concept empowers tax authorities to have access to a comprehensive audit trail of B2B invoices uploaded to the GST portal.
As invoices are generated before transactions, opportunities for invoice manipulation are eliminated. Moreover, e-invoicing software can detect forged invoices by comparing tax credits on the GSTN portal, effectively preventing tax evasion.
