E-Invoicing in New GST Return - What itis it Means of E-Invoicing?

E-Invoicing in New GST Return - What itis it Means of E-Invoicing?

What is E-invoicing?:

Electronic invoicing (also called e-invoicing) is a form of Electronic billing  E-invoicing methods are used by trading partners, such as customers and their suppliers, to present and monitor transactional documents between one another and ensure the terms of their trading agreements are being met. These documents include invoices, purchase orders, debit notes, credit notes, payment terms and instructions, and remittance slips.

All invoice information will be transferred from this portal to both the GST portal and the e-way bill portal in real-time.

What is the Current Invoice System for Issuing?:

 businesses generate invoices through various software, and the details of these invoices are manually uploaded in the GSTR 1 return this bill is reflected in GSTR 2 A that bills are upload by the Second party.

How will Electronic invoicing benefit businesses?:

Businesses will have the following benefits by using e-invoice initiated by GSTN:

1. E-Invoice will help to solve the error in a mismatch in the GST amount in GST Portal.

2. E-invoice Software is Create to read by another. which will help you to reduce the error in the date entry.

3. Real-time tracking of invoices prepared by the supplier is enabled by e-invoice.

4. Faster availability of genuine input tax credit.

5. Lesser possibility of audits/surveys by the tax authorities since the information they require is available at a transaction level.

When will E-invoicing get implemented?

The taxpayers with an annual aggregate turnover of over Rs 500 Crore can voluntarily generate e-invoices starting from 7 January 2020 through APIs. Whereas the taxpayers with the turnover over Rs 100 but less than Rs 500 Crore can join them from 1 February 2020. The electronic invoicing will be mandatorily implemented from 1 April 2020.

What are the mandatory fields of an e-invoice?:

E-invoice must primarily adhere to the GST invoicing rules. Apart from this, it should also accommodate the invoicing system or policies followed by each industry or sector in India. Certain information is made mandatory whereas the rest of them is optional for businesses.

Many fields are also made optional and users can choose to fill up relevant fields only. It has also provided a description for every field along with the sample inputs for the interested users. One can see that certain required fields from the e-way bill format are included now in e-invoice such as the sub supply type.