Tax leakage and frauds using fake invoices have been major issues that the Government has been trying to fight even before the GST era. E-invoicing in India is proposed to put an end to these by mandating authorization of every invoice from the government portal. The Central Board of Indirect Taxes and Customes has made e-invoicing mandatory for B2B transactions with more than Rs.100 crore turnover from 1st January, 2021. Currently it is mandatory for B2B transactions for taxpayers with a turnover of more than Rs.500 crores. However, exceptions include Special Economic Zones (SEZ) units, insurance, banking, financial institutions, NBFCs, GTA, passenger transportation service and sale of movie tickets.
‘E-invoicing’ or ‘electronic invoicing’ is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. Under the electronic invoicing system, an identification number is issued against every invoice by the IRP to be managed by the GSTN. All invoice information will be transferred from this portal to both the GST portal and e-way bill portal in real-time, eliminating the need for manual data entry while filing GSTR-1 return as well as generation of part-A of the e-way bills, as the information is passed directly by the IRP to GST portal.
This will replace the physical invoicing process and the existing e-way billing system and taxpayers will not have the need to generate separate e-way bills.
Besides plugging the tax leakage, the implementation of the e-invoicing under GST shall be beneficial for taxpayers. Some of the key benefits are:
– One-time reporting of the invoicing details for all your GST filings
– Minimized invoice mismatches during reconciliation
– The standard invoicing system means interoperability between multiple software
– Real-time tracking of invoices prepared by the supplier
– Automated return filing process as necessary details shall be auto-populated for various returns and even EWB
– Easy and Precise ITC claim
This will help the Government with some major advantages and in curbing tax evasion
– Tax authorities will have direct and accurate access to transactions as they take place in real-time since the e-invoice will have to be compulsorily generated through the GST portal.
– There will be less scope for the manipulation of invoices since the invoice gets generated prior to carrying out a transaction.
– Government can offer invoice-based lending to MSMEs
– E-invoicing is expected to improve the payment cycle for the industry
– It will reduce the chances of fake GST invoices and ensure only genuine input tax credit are claimed as all invoices need to be generated through the GST portal. Since the input credit can be matched with output tax details, it becomes easier for GSTN to track fake tax credit claims.
Covalsys, as a leading service provider of comprehensive set of solutions and services for the Manufacturing sector and across the entire Metals value chain in areas of ERP, MES, Industry 4.0, Plant automation like PLC & SCADA integration System and Analytics, presents a fully automated E-invoicing solution that seamlessly integrates to your SAP and/ or existing ERP management systems to effortlessly generate, submit, file e-invoices into the Government portal and have a hassle-free data extraction.
Our solution is simple, plugs into SAP ECC , S4 HANA , B1 SQL & HANA or any standard ERP solution, is cost effective and can be deployed in a very short time.
✓ Automation with Govt portal without any human interaction
✓ Validation as per Govt.GSTN portal
✓ ZERO % error in generating E-Way Bill and E-Invoicing
✓ No user level interaction required to and from GSTN Portal
✓ Faster processing, all the values updated back to ERP/Source data from GSTN Portal
✓ Auto mail for Customer and Vendor from GSTN Portal
Connect to us today for a demo on a quick and seamless e-invoicing integration, to be compliant with the latest regulatory regulations -> firstname.lastname@example.org