Recent Updates on e-Invoicing:
10th May 2023
The CBIC has announced the commencement of the 6th phase of e-invoicing, in line with the government’s aim of promoting a paperless GST system, reducing compliance costs for companies, and improving the efficiency of the GST system. Starting August 1st, 2023, businesses with an annual turnover of ₹5 crore or more since 2017-18 will be required to generate e-invoices.
11 October 2022
The GST Council intends to begin implementing the sixth phase of e-invoicing on January 1, 2023, for companies with annual revenues of at least Rs. 5 crores. Those with a revenue of more exceeding Rs. 1 crore in the upcoming fiscal year can also be eligible for it.
16 August 2022
As per the central board of indirect taxes and customs (CBIC) guidelines, taxpayers whose yearly turnover exceeds Rs. 10 crores now have to use the e-invoicing system from August 16, 2022.
4th July 2022
According to a government official, in order to lower the barrier from the existing Rs 20 crore, the government intends to make GST e-invoicing mandatory for businesses with a turnover of Rs 10 crore and higher from 1-10-2022.
24th February 2022
According to Notification No. 1/2022, the e-Invoicing system will be made available to businesses with an annual turnover of more than Rs. 20 crore and up to Rs. 50 crore as of April 1, 2022.
30th June 2021
The CBIC has issued a notification proposing to waive the penalty imposed for non-compliance with dynamic QR code regulations for B2C invoices between December 1, 2020, and September 30, 2021.
1st June 2021
A government department and local authority are exempt from the e-invoicing system, according to CBIC’s Central Tax Notification No. 23, dated June 1, 2021.
30th March 2021
The CBIC has published a notification to waive the fine for failing to follow the rules for dynamic QR codes for B2C invoicing between 1 December 2020 and 30 June 2021, provided that the person in question complies with the notification’s requirements starting on 1 July 2021.
e-Invoicing Becomes Mandatory form 1st April 2022
From April 1, 2022, e-invoicing will mandatory for businesses with a turnover ₹20 crore+.
You will need software that helps you overcome and manage the new system.
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This Article Contains The Following Topics:
What is E-invoice?
An e-invoice is a structured format with encrypted data in XML or EDI generated in the seller’s invoicing software. Alternatively, the format is generated in web-based forms and is issued to the seller as well as the customer.
What Are The Benefits of Marg E-Invoicing Software For Your Business
- Real-Time Tracking of E-invoices: Marg e-invoicing software allows the tracking of invoices in real-time prepared by the supplier on Marg ERP 9+. This permits the faster availability of input tax credit (ITC).
- Easy Reporting of B2B Invoices: under the system of e-invoicing the taxpayer needs to report the e-invoices only once. It is then authenticated by the Invoice Registration Portal (IRP). After validation of the e-invoice, a unique Invoice Reference Number is generated & the details are auto-populated with Marg e-invoicing software in GSTR 1.
- E-way Bill Generation: with Marg e-invoicing software the process of e-way bill generation is very simple. The taxpayer has to only add the vehicle details in the Part A of the e-way bill & get an auto-populated e-invoice generated from the system which gets easily authenticated at the GST portal.
- Simplifies The Process For Buyers: the buyer can reconcile the e-invoice with the purchase order & accept or reject the e-invoice in real-time. The e-invoice after authentication is sent to the buyer email ID mentioned on the e-invoice.
- No More Frauds: With Marg e-invoicing software the buyer & seller can get assured that there will be no more frauds. The data is available to the taxpayer & government authorities in real-time therefore chances of frauds are not there.
- Reduced Errors: Under the e-invoicing system, data is auto-populated from Marg e-invoicing software, therefore the chances of manual errors are almost negligible.
- Interoperability of E-invoices: As the e-invoices are generated in a standard format through Marg electronic invoicing software the data can be read by any other software. This allows interoperability between different systems.
- Helps in Tax Calculation: Real-time access to data eliminates the scope of manipulation, hence tax is calculated in real-time. Scope of fake GST invoices etc is not there as the input tax credit & output tax details are auto-filled.
- QR Code: the e-invoice is important in calculating the Input Tax Credit. In case the e-invoice is misplaced or something, details secured in the QR code are of great help.
- Better Customer Service: Apart from the basic e-invoicing benefits Marg electronic invoicing software offers better customer service with handholding training & real-time assistance in the generation of e-invoices.
- Save Time: Marg e-invoicing software is very easy to use & fast. The e-invoices are generated in just a snap of fingers. This saves time & when shared to the customers it also provides a provision of getting paid faster. The buyer doesn’t have to remind the customer again & again for payments.
- Cost-Effective: Unlike other electronic invoicing systems available in the market, Marg e-invoicing software is extremely cost-efficient. Specially designed for small & medium-sized businesses the pricing starts from just Rs. 999 per month.
After understanding the benefits of Marg e-invoicing software, let us have a look at 3 most important features of e-invoicing.
3 Most Important Features of E-invoicing
Electronic invoicing was introduced to ease the reporting of B2B invoices from businesses with 100 crores or above turnover by the GST council of India.
Here are the Features of e-invoicing:
Invoice Reference Number:
Under the new e-invoicing system, a unique Invoice Reference Number is generated for electronically uploaded invoices by the Invoice Registration Portal (IRP). IRN is computed using a hash algorithm. This ensures the authenticity that the supplier will not upload the same e-invoice more than once in a single financial year.
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Digital Signature (DSC)
A digital signature is a process of electronically authenticating the e-invoice that has been submitted by the specific supplier. The DCS is created as per the guidelines mentioned in IT Act, 2000.
Quick Response Code (QR Code)
This helps the tax officials to check the e-invoices using an offline application. A QR code contains the following information:
- GSTIN of supplier
- GSTIN of the recipient
- Date of the invoice generation
- Invoice number given by the supplier
- Number of line items
- Invoice value
- Unique IRN
- HSN code of the main item
Key Takeaway:
Marg e-invoicing software is the most advanced inventory accounting software that allows the users to generate professional e-invoices in a standard format that can be easily auto-populated in GSTR 1 during the GST return filing process. Marg e-invoicing software is the most user-friendly & affordable software that is available to start your business with. Since Marg electronic invoicing software allows all advanced features it will reduce errors, save time & effort so that you can focus on building your business.
