‘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 will be issued against every invoice by the Invoice Registration Portal (IRP) to be managed by the GST Network. All invoice information will be transferred from this portal to both the GST portal and e-way bill portal in real-time. Therefore, it will eliminate 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.
e-Invoicing has been made applicable from 1st October 2020 to all businesses whose aggregate turnover has exceeded Rs.500 crore limit in any of the preceding financial years from 2017-18 to 2019-20. Notification No.61/2020 – Central Tax prescribed the turnover limit for the implementation of e-Invoicing from 1st October 2020. Notification No.71/2020 – Central Tax prescribes the time period considered for determining eligibility under e-Invoicing.
Further, from 1st January 2021, e-Invoicing will be applicable to businesses exceeding the Rs.100 crore turnover limit in any of the financial years between 2017-18 to 2019-20, as intimated in Notification No.88/2020 – Central Tax.
Thereafter from 1st April 2021 the e-Invoicing will be applicable to all the B2B Transactions including services
Benefits of e-invoicing
Businesses will have the following benefits by using e-invoice initiated by GSTN:
- E-invoice resolves and plugs a major gap in data reconciliation under GST to reduce mismatch errors.
- E-invoices created on one software can be read by another, allowing interoperability and help reduce data entry errors.
- Real-time tracking of invoices prepared by the supplier is enabled by e-invoice.
- Backward integration and automation of the tax return filing process – the relevant details of the invoices would be auto-populated in the various returns, especially for generating the part-A of e-way bills.
- Faster availability of genuine input tax credit.
- Lesser possibility of audits/surveys by the tax authorities since the information they require is available at a transaction level.
Tally will be shortly introducing a new Release of Tally Prime Release 1.1 which will simplify e-invoicing for all the customers.
Tally Solutions is going to conduct multiple webinars in different languages for customers to get a feel of the product. The details of the upcoming webinars are appended below.
Date : 18.12.20 (11 am to 12.30 pm) : English :
Date : 18.12.20 (2.30 pm to 4 pm) : English
Date : 21.12.20 (11 am to 12.30 pm : Hindi
Date : 21.12.20 (2.30 pm to 4 pm) : English
Date : 23.12.2020 (11 am to 12.30 pm) : English
Date: 23.12.2020 (2.30 pm to 4 pm) : Hindi
We encourage customers especially for whom e-invoicing will be applicable from 1st January 2021 (i.e. customers with turnover 100 crores and above) to attend this webinar.
Ketan Ramesh Gandhi
Tally Certified Partner