What is e-invoicing? Who generates e invoice and what are its benefits for a business?
With the term “e-invoicing”, the generation of invoice on GST portal would be a wrong statement, e-invoicing is more than that. E-invoicing includes the submission of already generated invoices on a common e-invoice portal.
Submit your invoice details for once and possess the benefit of reporting multi purposely. The CBIC notified a number of common portals for preparing e-invoice.
E-invoicing under GST
An e-invoice is a document which has an IRN associated with it and the digitally signed QR code printed on it, Here are some points how:
Under the approach e-invoicing, all the B2B and Export invoices generated by a business need to be registered with the Invoice Registration Portal (IRP). Further they’ll receive a unique identification number for every invoice called Invoice Reference Number (IRN). The IRP will generate a digitally signed QR code with selected details from invoice and digitally sign the uploaded invoice data.
Once the invoice has been authenticated, its details shall be made available on the GST portal in real-time.
To whom e-invoicing is applicable?
E-invoicing is currently one of the most talked topics in recent GST changes.
Companies with 100 crore turnover or more are required to generate einvoice mandatorily from 1st January 2021.
The action has been taken into consideration after overseeing the successful adoption of GST changes by companies with turnover of 500 crore or more w.e.f: 1st October 2020.
Who is excluded in generating an e-invoice?
According to the notification:
- Insurance company
- Banking company
- Financial Institution
- Non Banking Financial Company
- Goods Transport Agency
- Supplier of passenger transportation services
- Special Economic Zones Unit and not for SEZ Developers
- Supplier of services by way of admission to the exhibition of cinematograph films in multiplex screens
What will be the benefits of generating an einvoice?
Businesses will be benefited greatly with by using e invoice initiated by GSTN, have a look:
- An e-invoice resolves the gaps in data reconciliation under GST to reduce errors.
- Automation of the tax return filing process by auto population in various returns.
- Easy and quick availability of input tax credit.
- An e-invoice facilitates real-time tracking of invoices prepared by the supplier.
- Reduces the risk of fraudulent activities.
- An e-invoice possesses a high level of insights and control into the overall invoicing process.
BharatBills provides you the simplest way of generating e invoice. A variety of modes through which e-invoice can be generated. Along with that, the users are set free to enjoy a 30days free trial of the complete software. Not just e-invoicing but BharatBills provides you a number of additional benefits such as e-way bills, GSTR-1, purchase/stock management, reports, template for e-invoices. The features of this reliable software is not restricted to any extent.