The approval of e-invoicing by the GST council has brought forward interoperability. With the generation of e-invoices in a standardised format, invoices generated by one software solution can be easily decoded by another. Scroll through this article to discover how e-invoicing software solutions can help Indian businesses with GST compliance.
1.Timely reporting of B2B invoices
The Invoice Registration Portal (IRP) checks the invoice and assigns the Invoice Reference Number (IRN) to taxpayers who adopt e-invoicing. The details will be automatically updated on the GSTR-1 return after login. This gets rid of the previously used manual reporting process.
The best e-invoicing tool will be able to automatically print the invoice reference number and QR code. If you need to cancel invoices with already generated IRNs, e-invoicing tools can help. You will be able to cancel those invoices and provide details regarding the cancellation directly from that tool.
2. Bulk invoice generation
GST compliance demands the timely generation of invoices by businesses. All e-invoicing tools let you create single electronic invoices during voucher entry. However, efficient e-invoicing solutions will make GST compliance easier with bulk invoice generation. It becomes possible to generate multiple invoices at a time with a single click on the best e-invoicing tool.
3. Facilitates offline export
Any comprehensive e-invoicing software solution will let you continue with the process of e-invoicing even in offline mode. This is a valuable feature with unlimited benefits during temporary internet disconnections or power outages. In these situations, you will be able to export the e-invoice details in JSON format and upload them to the IRP at a convenient time.
4. Smooth generation of e-way bills
The taxpayer only needs to update vehicle details using e-invoicing to generate an e-way charge. The details in Part A of the e-way bill will be automatically generated from the GST portal-authenticated e-invoice.
5. Elimination of data entry errors
The invoice can be uploaded to the common location as part of the e-invoicing system, enabling multifunctional reporting. Once validated, all invoices will be transmitted in real-time to the GST and e-way bill portal. This auto-population eliminates the necessity for data entry by hand while filing GST returns, and it also assists in reducing data entry errors.
An e-invoice will be submitted into the applicable GST return once it has been authenticated and certified by the invoice registration system. After validation, it will be available for analysis and action by the recipient (under the new return system).
The tax department’s main goal is to enable the pre-population of GST returns, which will eliminate reconciliation issues. After implementing e-Invoicing, the data in the invoices can be included in the necessary tables of the tax returns, eliminating the need for new data entry.
6. Access to reports
An e-invoicing solution will offer access to a vast range of insightful business reports. You will be able to check out these reports online from any device around the globe.
Closing thoughts
The concept of e-invoicing will allow tax authorities to access a complete audit trail of B2B invoices from taxpayers, with each one of them getting uploaded to the GST portal. As the invoices get generated before a transaction, no opportunities for manipulating the invoices are available. An e-invoicing software solution will be able to identify fake invoices by comparing the input and output tax credits on the GSTN portal to prevent tax crimes.
