E-invoicing or electronic invoicing is a simple b2b tax invoice that is usually issued by every registered tax being business or taxpayer. Under the system, a specific and unique identification number will be issued against every GST invoice by the IRP, which is managed and controlled by the GST Network (GSTN). Once the bill is generated, all the invoice information will be automatically transferred to the GST portal and e-bill portal in real-time. The online process automatically eliminates the tedious manual data entry job while filing GSTR-1 returns and the generation of part A of e-way bills. Hence, e-invoicing is a must-know after you complete GST Registration in India.
E-invoicing under GST- What is the latest system for issuing invoices?
Presently, most businesses and organizations generate their invoices using multiple software. All the invoice details are manually typed in GSTR – 1 return. Once the supplier files the GSTR-1, The invoice information will be reflected in GSTR – 2A, which can only be viewed by the recipients. Additionally, the transporters and consignors also need to generate e-way bills by importing the invoices in JSON or Excel manually.
One of the best ways to generate E-Invoices is using Instabill. It is online software and you can also use an android app of Instabill to generate e-invoices easily.
How will the various businesses and organizations benefit from e-invoicing?
- With the help of an invoice, a major gap in data reconciliation under GST will be reduced to minimize the mismatch errors.
- All the e-invoices created using One two law software can be read by another. This allows interoperability and also reduces any data loss or data entry error during the process.
- Faster availability of correct and authenticated input tax credit.
- All the e-invoices created by the supplier can be tracked in real-time.
- The essential details of the invoices will be auto-populated in the various types of returns, especially for generating Part-A of e-way bills.
- There are lesser possibilities of chances of audits or services by the tax authorities because all the important information and details at the basic transaction level are already uploaded by the seller on the portal.
The e-invoicing system is applicable to all those who have GST Registration and do GST Return Filing. As e-invoicing has several benefits, you should understand it and use it for your business too.
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