GST e-invoice is the introduction of the digital invoice for goods and services provided by the business firm generated at the government GST portal. The concept of the GST e-invoice generation system has been taken into consideration for the reduction in GST evasion. . In the event that the invoice is late or wrongly deciphered it may prompt non-payment or late payment. In a case when there is any mismatch between the goods or/and services supplied, your customer may also reverse the item delivered.

The advancement in invoicing technology will take businesses to a next level. E-invoicing empowers businesses to computerize their cycle by incorporating e-invoicing software. This will assist with acquiring business efficiency easily and accurately.  

First let’s talk about the benefits E-invoicing Software:

  1. Automation of the invoicing process.
  2. Various level of verification
  3. Reduced chances of human errors
  4. The dashboard is intuitive and user-friendly that lets you separate processed, pending, and rejected invoices.
  5. Create E-invoices, advance receipts, credit & debit notes, reverse charge E-invoice
  6. Maintain items catalog
  7. Import Item Master / Bulk upload of Products & Services
  8. Auto-Prepared Returns and E-way Bills from E-invoice
  9. Bulk upload/creation of Invoices
  10. Single window for all Invoice archives whether it is e-invoice, hard copy, or softcopy Invoices.

How does e-invoicing software work?

The e-invoicing software empowers businesses to automate and smooth out the e-invoicing process of the supplier. It separates data, approves it, and moves it to your ERP framework. Then the invoice generated is sent for approval to the Invoice Registration Portal (IRP). Once the invoice is approved by the IRP, it gets the Invoice Reference Number (IRN) and signs the QR code directly to your ERP. In case if there is any error the invoice will get rejected.

Benefits of GST Invoice

  • Simplified GST compliance
  • Precision
  • Lesser reconciliation errors
  • Reduction in price
  • abolition of paper
  • The effective functioning of capital performance
  • Improvement in business efficiency

Applicability of GST E-Invoice System

It will be mandatory for the businesses to generate the entire GST e-invoice including all the value of sales. The assessee whose turnover is more than Rs 500 crore in the previous fiscal year from 2017-18.

Major Challenges of E-invoicing Under GST

  • If the invoice is found not registered on the IRP, such invoice will not be considered as a valid tax invoice for all GST related matters and hence a penalty of ₹ 10,000 will be incurred for each instance of non-compliance
  • Transportation of goods without a valid tax invoice can be a reason for the detention of goods and vehicles and fines will be also imposed
  • Customers may deny accepting and/or pay goods if a valid tax invoice is not available as this would affect the receiver’s eligibility to receive ITC benefits
  • In addition, the government plans to implant a check that will prohibit the generation of an e-way bill if the IRN is absent

How can GimBooks Help you?

GimBooks is one of the leading GSP who provides industry-leading GST compliance software such as GST. e-way bill and e-invoicing software. These solutions not only seamlessly integrate with all the ERPs but also automate most of your invoicing task.