What is GST e-invoicing and How e-invoicing can help your business?

1. What is GST e-invoicing and How e-invoicing can help your business? E-invoicing is a system of generating authenticated B2B invoices electronically by GSTN (Goods and Services Tax Network) to be exchanged between suppliers and buyers. The true practice of e-invoicing should be electronic through its entire life cycle, from the stage of supplier creating it to the buyer processing it. The integrated solution enables a fully automated flow directly from a company’s ERP system to another. The concept of GST e-invoice generation was considered to ensure a reduction in GST evasion. Businesses whose turnover exceeds INR 500 Crore should mandatorily generate e-Invoices under the GST regime w.e.f October 31, 2020. Whereas businesses whose turnover is over 100 Crore should generate e-invoices w.e.f January 1, 2021. Benefits of E-invoicing It is significant to understand a variety of benefits offered by E-invoicing as listed below: Real-time invoice tracking: E-invoicing enables real-time tracking of invoices prepared by the issuer/supplier. It enables quick availability of Input Tax Credit (ITC). The supplier and buyers can keep a track when the invoice has been sent and received respectively. Seamless account reconciliation: With account reconciliation facility, customers can easily merge multiple invoices into one payment and avoid discrepancy in errors and payments. With E-Invoicing, customers can send invoices’ details along with the payments to ensure simplified & seamless account reconciliation.

2. What is GST e-invoicing and How e-invoicing can help your business? Allows interoperability: As the e-Invoices are generated in a standardized format, the invoice generated from one software can be easily read by different software without any hassle, thus, ensuring interoperability. Reduces chances of data entry errors: Under the E-invoicing system, invoices are to be uploaded on the common portal to allow multipurpose reporting. After authentication, all invoices are transferred to the GST portal and e-way bill portal in real-time. This process eliminates the need for manual data entry while GST return filing and ensures reduction in data entry errors. Creates e-way bill easily: With E-invoicing system, one can generate e-way bills easily since taxpayers are required to update only vehicle details. Details in Part-A of e-way bill gets auto-populated from E-invoice authenticated from the common GST portal. QR code: GST invoices re important to calculate the amount of input tax credit. An assessee may require additional copies of the issued invoice and with the help of QR code, it is possible. Assesses can generate invoices in PDF format as many times required, by scanning the QR code. Prevents tax evasion: The data accessible on in real-time reduces the scope of illegal manipulation of invoices since invoices are generated before carrying out a transaction. Only authenticated ITC can be claimed

3. What is GST e-invoicing and How e-invoicing can help your business? resulting in end of fake GST invoices. With easy availability of input tax credit and output tax credit, fake input credits can be tracked by the tax authorities. Conclusion: E-invoicing drives a push towards digital economy. The resultant positive impact on efficiency of GST system will help lessen fraudulent activities along eradicating data entry errors. Alankit provides the best-in-class E-invoicing solution for your business in an efficient manner. It offers different modes through which e-invoice can be generated by the businesses such as the seamless API integrations. Source of news - https://www.alankit.in/blog/what-is-gst-e-invoicing-and-how-e-invoicing-can-help- your-business