Benefits of Electronic Invoicing
Beneath the new e-invoicing system, all business to business (B2B) invoices are certain to get electronically authenticated by GSTN. As done in the past, all businesses will continue to generate invoices on their respective ERP. The ERP providers have to make changes with their schema to adjust to the new standardised format. This new schema will ensure the standardisation of invoices. This post goes through the advantages and disadvantages of the newly introduced e-invoicing system. EInvoicing eliminates the delays that derive from mailing, routing, sorting and re-keying paper documents. Customers can easily route your invoices for fast processing and approval because the data is immediately available electronically in their workflow systems. As a result, invoices can be paid on time, days sales outstanding (DSO) can be reduced by four days or even more and cashflow is improved.
Real-time tracking of invoices: E-invoicing allows real-time tracking of invoices prepared by a supplier. This allows for faster option of input tax credit (ITC).
One-time reporting of B2B invoices: Under e-invoicing, a taxpayer must report the invoices only once, and obtain it authenticated by the Invoice Registration Portal (IRP), which validates the invoice and issued the Invoice Reference Number (IRN). Upon authentication, the facts will be auto-populated to the GSTR-1 return. This reduces the manual reporting process that once was carried out.
Easy creation of e-way bill: E-invoicing facilitates the simple generation of the e-way bill as the taxpayer has to just update vehicle details. The facts in Part-A of e-way bill will get auto-populated from e-invoice authenticated from the GST portal. Visit this website to get more insight, الفاتورة الإلكترونية
Helps the buyers: E-invoice once uploaded on the GST portal for authentication will be distributed to the customer as well on his e-mail ID mentioned on the e-invoice. This can help the buyer to reconcile his purchase order with the e-invoice and also accept/reject the invoice over a real-time basis.
Decrease in frauds: Real-time option of data with tax authorities will lead to a reduction in frauds.
Decrease in data entry errors: Beneath the e-invoicing system, the invoice will be uploaded on the normal portal that may facilitate multipurpose reporting. All invoices once authenticated are certain to get transferred to the GST portal and e-way bill portal over a real-time basis. This auto-population will get rid of the need for manual data entry while filing GST returns, and reduce data entry errors.
Allows interoperability: As the e-invoices are made in a standardised format, the invoice made from one software can be read by different software as well. This enables interoperability.
Curb tax evasion: Real-time usage of data will lessen the scope of manipulation of invoices as the invoices will get generated before following a transaction. This will further reduce the scope of fake GST invoices, and similarly, only genuine ITC can be claimed. As the input tax credit and output tax details are plentiful, it becomes easier for the tax officials to track fake input credit.
QR code: The GST invoices are essential for calculating the amount of ITC. An assessee may misplace an invoice that was issued or may necessitate additional copies of the same invoice. In such instances, the QR code will be of great help. By scanning this code, the assessee can generate the invoice a variety of times in a PDF format.
