Tag: e invoice generator

Commencing October of 2020, some GST-registered businesses were mandated to generate an electronic document that would verify all their business-to-business transactions. This was the electronic invoice, more commonly called the E-Invoice. In this article, we will learn more about this e-invoice and how to make an e-invoice.  What is an E-Invoice?  An E-Invoice, or an electronic invoice, is an electronic document that is generated for business-to-business transactions. These invoices along with a few other documents are then authenticated electronically by the Goods and Service Tax Network, for more uses on the GST portal. This process helps streamline the tax filing process and maintains transparency and compliance.  Built in a standardized format, it entails the invoice registration number (IRN), and a QR code, that can be scanned to get the invoice details quickly.  Who Needs an E-Invoice? Businesses above a certain threshold are mandated to generate an e-invoice. The turnover criteria was initially set at Rs. 500 crores, but as of 1st August 2023, it has been progressively lowered down to Rs. 5 Crores, which needs to generate an e-invoice, from the e-invoice GST portal. Their turnover limit must have an annual assessment to comply with the tax regimes. Taxable business-to-business sales of goods and services and business-to-business transactions are mandated to generate an e-invoice. If the supplier’s aggregate turnover exceeds the specified limit threshold, they should generate their e-invoice. Businesses can also opt for voluntary adoption of the generation of an e-invoice. This means that even if the businesses’ annual aggregate turnover is below the specified threshold, they can opt to generate invoices voluntarily. They might not be mandated to do so, but this will benefit the business in the long run, helping it streamline its processes and prepare for future compliances, in case its turnover increases.  Characteristics of an E-Invoice The e-invoice template needs to be generated in the JSON format, following the GST INV- 1 schema. It is generated in the PEPPOL language, which is a universal business language and is adapted to the Indian market. The e-invoice sample has an Invoice Registration Number or an IRN which is a 64-digit code. It should not be confused with the invoice number. The GST portal validates your e-invoice by assigning the said 64-digit IRN. Only when your e-invoice contains the IRN, will it be considered a valid e-invoice. Another important part of an e-invoice format is its QR Code, which can be scanned, to get the details immediately. This QR Code entails the following:- The GSTIN-ID of the supplier. The GSTIN-ID of the recipient.  The invoice number. Date when the invoice was created. The number of product lines. HSN code of the product that carries the highest value. The IRN code. https://youtu.be/3wrhhLOeDwA?si=O3rbWaMFSGPTjaSF Benefits of Generating an E-Invoice Generating the e-invoice makes a standard format for invoices. This ensures consistency, and uniformity, making it easier for businesses to manage their taxes. These invoices are authenticated and reported in real-time, which reduces the scope for any fraudulent activities related to tax filing and invoice generation. Automated data entry will eradicate manual entries, which will further minimise any errors subjected to manual data entry and improve data accuracy. The businessmen can access their validated invoices in real time, enabling quicker verification and processing of payments. By automating the invoice uploading process, you can streamline the filing of GST, making the tedious process fast and efficient. 5  Easy Steps to Generate an E-Invoice Generation of an e-invoice may not be a layman’s task. We are here to help you generate a worry-free and error-free e-invoice, from the e-invoice portal. Here’s how to make an e-invoice in 5 easy steps. Step 1: The businessman will continue to generate invoices with the help of the ERP software of his choice. The software will generate a JSON for each business-to-business (B2B) invoice.  Step 2: The invoice registration portal (IRP) will generate a unique invoice reference number, using the standard generation algorithm.  Post which, you need to upload the JSON of each invoice along with the IRN on the e-invoice portal.  Step 3: The portal will authenticate your files, and after that add a signature, an invoice reference number, and a QR to your JSON.Step 4: This Invoice reference number will now be your new IRN UID for the invoice of that financial year.Step 5:  After the successful generation of the e-invoice from the e-invoice GST portal, the e-invoice portal will send your JSON along with the IRN and QR back to the seller and the buyer on their registered email addresses.  Conclusion E-invoicing under the GST system in India represents a significant step towards modernising the tax framework. By formulating a normalized electronic configuration for B2B invoices, it upgrades transparency diminishes mistakes, and guarantees consistency with tax guidelines. The framework's computerization capacities work with continuous detailing, limit manual interference, and work on the precision of GST filings. Marg ERP software will help you in managing all your invoices at one place so that it becomes easy for...

E-invoices must be created within the notified time limit of 30 days from the invoice date. Earlier, the e invoice generation time limit was seven days, but the government postponed the implementation by three months. However, currently, the law applies to only some notified taxpayers. The limitation obliges businesses to adopt Live invoicing.  Before jumping to the time limit of e-invoice, let’s first understand it and its process. What is e-invoicing? An e-invoice is a digital document that is exchanged by buyers and suppliers and validated by the Government Tax Portal. E-invoicing is the proposed system where B2B invoices are prepared online in the e invoice format and certified by the GSTN. this system ascertains that the same format is implemented by all businesses before reporting invoices to the e invoice portal login.  In August 2019, the government published a draft of an e-invoice for public view, later, modified by the GST Council to adhere to their regulations. The standard format makes adherence easier and because it’s applied across industries, it ensures interoperability between GST ecosystems. What is the e invoice time limit? The time limit to create an e-invoice on the Invoice Registration Portal for all tax invoices and Credit & Debit notes issues is thirty days from the given date in the invoice and debit or credit note. For example, if an invoice’s date is 2nd April 2024, then it must be reported by 1st May 2024 on the IRP. Who must comply with the e-invoicing time limit? https://youtu.be/klGtFx636Ww GSTN defined that all taxpayer organizations with an Annual Aggregate Turnover of Rs. 100 crore or more must abide by the time limit. The thirty-day time limit applies to Reporting Tax Invoices, Credit & Debit notes to any notified IRP, entailing any outdated documents unreported as of 1st April 2023. However, the validation or rule doesn’t apply to taxpayers with AATO of less than INR 100 crore. The legal status of the e-invoicing time limit The latest notification for the e invoice generation time limit, the GST law doesn’t limit any time limit for taxpayers for documents reporting on the e-invoice portals or IRP to generate e-invoice. By default, the GST provision on the supply time and time limit to generate invoices would apply to all taxpayers. Nevertheless, the limitations of 30 days time limit to report documents on IRP are put by the GSTN. Consequences of not abiding by the e-invoicing time limit The IRP has internal validation to accept only tax invoices and credit & debit notes within 30 days. Such taxpayers cannot create e-invoices and will be considered non-compliant under the law of GST. If the team fails to meet the e-invoicing deadline of 30 days, they must re-raise the invoice and report it to IRP. it leads to late reporting or an automatic population of e-invoices in GSTR1. It influences the input tax credit flow and supply chain because of delay. Consequently, it deteriorates relationships with customers. The GST legislation enforces a huge penalty in the following manner- For incorrect invoicing – Rs.25,000 / invoice (for the issued invoice with no IRN and signed QR code).  For non-generation of e-invoice – 100% tax due or Rs.10,000, whichever is higher, for each invoice. (if the invoice is not issued) What are the major advantages of e-invoice? The business world after the pandemic is different from how it was pre-pandemic. With a larger adoption of digital techniques, e-invoicing has proven extensively beneficial for everyone involved. Let’s move forward to know the benefits of e-invoicing. 1. Saves time E-invoicing saves time for businesses which is a key advantage for them. E-invoicing is a digital process that takes only a few minutes. Earlier, traditional invoicing needed so much time to create and upload details of invoices to the government portal for return filing. Whereas, e-invoicing doesn’t require processing, sending, tracking, and approving invoices. Hereby, it has made productivity better as it saves employees time that they can use on other crucial aspects that require more attention. E-invoicing makes the payment process faster and information aggregation is done fluently. 2. Improved accuracy E-invoice eliminates human errors, resulting in improved accuracy. You don’t have to manually enter the data which minimizes the probability of errors. Additionally, the information is directly fetched from the e-invoices and the billing systems also manage information, which ensures no errors during the e-invoice process. The communication between vendors and buyers will be improved and consequently, processing time will be saved due to no errors in the e-invoices. 3. Cost-effective E-invoicing is more affordable for businesses as compared to the traditional way of invoicing and reporting. As the whole process is digital, it shortens it automatically. Unlikely the traditional method, you don’t have to spend more energy on e-invoicing. 4. Accessibility On the contrary heavy folders with tons of paper, digital allow you quick access with a great safety level. Search Anywhere: With a digital management platform, documents can be easily accessed without a physical search...