Understanding E Invoice: A Comprehensive Overview
Applicability & Non Applicability
E Invoice is applicable to all B2B Invoices, after generating E Invoice a unique Invoice Reference Number (IRN) will get generated. Currently E invoice is applicable to business which have turnover more than 50cr but from 1st April 2022 E Invoice is applicable to all Businesses which have Turnover of more than 20cr. So which business is exempted from E Invoice, let’s discuss below
- Banking Co, Insurer Co & other Financial Institutions.
- A (GTA) Goods Transport Agency.
- A Registered person supplying passenger transportation services.
- A registered person supplying services by way of admission to the exhibition of cinematographic films in multiplex services
- An SEZ Unit.
- Government Department and Local Authority.
How to Generate/Upload:
The Invoice Registration portal (IRP) is the platform to upload the E-invoice. The IRP generates and returns a unique Invoice reference number (IRN), digitally signed e invoice, and QR code to the user.
After uploading of Invoice on the Invoice Registration Portal, all Invoices will flow to GSTR1, and also you can generate E Way bill. There are various mediums to upload Invoices on IRP, such as Excel Tool by generating JSON file, API integrated Software, Web Based or through any GST Suvidha Provider or through any Professional. Only Registered Persons can generate E Invoice. Users can upload Bulk Invoices also.
Whether Invoice can be changed after Uploading?
E invoice cannot be edited or changed, it needs to be canceled fully. On cancellation, it must be reported to the IRN within 24 hours. So thereafter one cannot cancel Invoice and it must be manually canceled on the GST portal.
Auto Population in GSTR 1 :
On Successful uploading of Invoices on IRP, all details will be auto populate in GSTR 1 of the Supplier, this doesn’t mean you have filed GSTR 1, which needs to be done manually, only your Invoice uploading work will get reduce or NIL subject to any changes.
Note: E-Invoice can be checked by any person on the E-Invoice portal or can be easily verified with the QR code scanner by using a mobile app.
Benefits of Implementing E-Invoicing in Business Operations
Improved Efficiency: E-invoicing automates the invoice generation and processing, eliminating manual tasks such as printing, mailing, and data entry. This streamlines the entire invoicing process, reducing errors, saving time, and increasing overall operational efficiency.
Cost Savings: E-invoicing significantly reduces costs associated with paper, printing, postage, and manual labor involved in traditional invoicing methods. It also minimizes the risk of lost or misplaced invoices, eliminating the need for re-sending or re-generating invoices.
Faster Payments: E-invoicing accelerates the payment cycle by reducing the time spent on invoice delivery and processing. Invoices can be sent instantly, and payment reminders can be automated, ensuring faster payments and improved cash flow.
Enhanced Accuracy: Manual data entry can lead to errors and discrepancies in traditional invoicing. E-invoicing eliminates manual data entry by electronically capturing and transferring invoice data, reducing the risk of errors and ensuring accurate and consistent invoices.
Better Cash Flow Management: With e-invoicing, businesses have real-time visibility into their invoice status, payment receipts, and outstanding invoices. This enables better cash flow management and forecasting, allowing businesses to make informed financial decisions.
Increased Security: E-invoicing provides a secure and tamper-proof environment for invoice exchange, reducing the risk of fraud and unauthorized access. It also ensures data privacy and compliance with data protection regulations.
Improved Supplier-Customer Relationships: E-invoicing simplifies the invoicing process for both suppliers and customers. It eliminates manual errors and disputes, enhances transparency, and fosters stronger relationships by providing accurate and timely invoicing information.
Compliance with Regulatory Requirements: Many countries have implemented or are moving towards mandatory e-invoicing as part of their tax and regulatory frameworks. Implementing e-invoicing ensures compliance with these requirements, avoiding penalties and legal issues.
Environmental Sustainability: E-invoicing reduces paper usage, printing, and transportation associated with traditional invoicing methods. By adopting e-invoicing, businesses contribute to environmental sustainability and demonstrate their commitment to reducing their carbon footprint.
Integration with Business Systems: E-invoicing can seamlessly integrate with accounting, ERP, and other business systems, allowing for automatic data synchronization, improved data accuracy, and streamlined reconciliation processes.
It’s important to note that the specific benefits of e-invoicing may vary depending on the business size, industry, and specific implementation. However, overall, e-invoicing offers significant advantages in terms of efficiency, cost savings, accuracy, and compliance.