GST E Invoicing Software

E-invoicing under GST refers to the electronic generation of invoices as mandated by GST regulations. Similar to the requirement for GST-registered businesses to issue e-way bills when transporting goods, specific GST-registered businesses are also required to generate electronic invoices for Business-to-Business (B2B) transactions.

As of the latest updates, starting from August 1, 2023, e invoicing becomes mandatory for all GST-registered individuals whose aggregate turnover (as per their PAN) in any preceding fiscal year from 2017-18 onwards exceeds five crores.

To facilitate a smooth transition to e-invoicing, IndiaFilings introduces the LEDGERS GST e Invoicing software, which is designed to simplify and streamline the e-invoicing process for businesses.

e Invoicing under GST

The e-Invoice system is a digital verification mechanism under India's GST framework, where B2B invoices are authenticated electronically by the GST Network (GSTN). This system facilitates the issuance of a unique identification number for every invoice via the Invoice Registration Portal (IRP), managed by GSTN.

Upon generation, all invoice details are instantaneously transmitted from the invoice portal to the GST and e-way bill portals. This synchronisation eliminates the need for manual data entry during the GSTR-1 return filing and the generation of part A of the e-way bills, streamlining these processes.

Benefits of the e invoicing system

The e invoicing system was implemented primarily to streamline GST return filing and improve reconciliation accuracy. Here’s a combined overview of its key benefits:

Streamlined Reporting and Efficient Record-Keeping:

E-Invoicing facilitates one-time reporting of B2B invoices at the point of generation, eliminating the need to report in multiple formats. This simplification extends to maintaining sales and purchase registers, which can be effortlessly generated from e-invoice data, aiding in efficiently preparing GST returns under the new system.

Automated Tax Filing and E-Way Bill Generation:

The integration of e-invoice data with the GST portal simplifies the tax filing process by auto-populating return forms and reducing manual efforts. Additionally, e-way bills can be seamlessly generated using this data, enhancing the logistics and transportation process.

Enhanced Reconciliation and Real-Time Tracking:

e invoice in GST minimises the need for reconciliation between financial records and GST filings, thereby saving time and reducing errors. Real-time tracking of invoices also speeds up the validation of input tax credits and reduces verification issues, leading to quicker financial turnovers.

Fraud Prevention and Elimination of Fake Invoices:

With real-time data access, tax authorities are better equipped to detect and prevent fraudulent activities. Moreover, the e invoicing system helps eliminate the generation of fake GST invoices, preserving the tax system's integrity and ensuring compliance.

Reduced Audits and Enhanced Financial Management:

The detailed, transaction-level information provided by e invoicing GST minimises the likelihood of audits and surveys by tax authorities, decreasing the administrative burden associated with tax compliance. This transparency builds trust and facilitates better financial management and cash flow for businesses.

Businesses Eligible for GST e invoice

e invoice GST will apply to all businesses registered under the Goods and Services Tax (GST) system and issue Business-to-Business (B2B) invoices.

GST einvoice Applicability

As mentioned, The Indian government has steadily reduced the GST eInvoice limit for mandatory e-invoicing. As per the latest amendment, any business with a total turnover exceeding Rs. 5 crore in the previous financial year must generate e-invoices for all covered transactions. This revision came into effect on August 1st, 2023.

Time Limit to Generate GST-invoices

The rules surrounding the timeframe for generating GST e-invoices have undergone recent changes. Here's a breakdown of the current situation:

A strict deadline exists for taxpayers with Aggregate Annual Turnover (AATO) exceeding Rs. 100 crore (as of May 1st, 2023). You must generate e-invoices for tax invoices and credit/debit notes (CDNs) within seven days of the invoice date. Please comply with this deadline to avoid your invoices and CDNs being considered non-compliant.