e-invoicing or electronic invoicing under Goods and Services Tax (GST) is a novel system introduced by the GST Council to streamline reporting and validating invoices from businesses of all sizes.
e-Invoicing aims to reduce errors, fraud, and duplication of invoices while improving compliance. Continue reading to understand what e-Invoicing is in GST and how it benefits all stakeholders.
e-Invoicing under GST is a system in which invoices for business-to-business (B2B) companies and a few other documents are authenticated by the GSTN on the GST portal. It is mandatory for businesses with a turnover above INR 10 crore from August 2022.
Unlike what it might sound like, e-Invoicing does not involve generating invoices on the GST platform. Instead, it involves submitting the already generated invoice on the e-Invoice portal of GST, automating the multi-purpose reporting and limiting the invoice details to just once.
Once uploaded, the invoices are transferred to the e-way bill portal and the GST portal in real-time. The Invoice Registration Portal (IRP), managed by the GST Network (GSTN), generates an identification number against the invoice.
The e-Invoicing system initially covered only a specific category of enterprises, mostly large, and was later expanded to cover small and mid-sized businesses.
The e-Invoicing system automates the generation of part-A of the e-way bills and eliminates the need for manual data entry while filing GSTR-1 returns. this creates an efficient and faster system. Some benefits of e-Invoices are as follows:
e-Invoicing also helps prevent cases of tax evasion in the following ways:
The GST Council took a revolutionary step by introducing e-Invoicing as it simplifies and automates the invoice reporting and validation process. It helps the government save time, increase transparency, and facilitate data analysis. Businesses can benefit by claiming input tax credits on time with enhanced data security.
Businesses should adopt e-Invoicing as soon as possible to enjoy its advantages and to comply with the GST norms. And suppose you are looking for a secure way to manage your money online. In that case, you can check out Fi Money, a digital banking platform that offers a zero-balance savings account, a debit card with no forex charges, and easy investment options. Visit Fi Money to learn more.
Some types of e-Invoices under KSA are as follows:
e-Invoicing applies to businesses with an annual turnover of over INR 10 crores, except financial institutions, suppliers of passenger transport services, and banking companies, among others.