A quick study of GST E-Invoicing system

What is E-Invoicing?

•        Electronic Invoicing or E-Invoicing in short can be referred to as a system of electronic authentication of B2B(Business to Business) invoices by GSTN for further use on common GST portal.
•   Under the said system every invoice will be issued an identification number by IRP (Invoice Registration Portal) which will be managed by GSTN.
•   All invoice related information will be transferred from this portal to both GST portal and e-way bill portal in real-time thus eliminating the need of manual data entry as well as generation of part A of the e-way bills, as information will be directly passed by the IRP to GST portal.

What are the benefits of E-invoicing system?

•   It will help in reducing the mismatch errors in data reconciliation thus saving a lot of time.
• E-invoicing will allow interoperability as invoices generated through one software can now be read through other software as well.
• It will enable real-time tracking of invoices prepared by suppliers.
• The system will support backward integration and automation, now the relevant details of invoices can be auto populated in various returns, thus reducing chance of human error and also will help save time.
• New system will enable faster availability of input tax credit(ITC).
• Since mismatch can be reduced it will help both auditors and surveyors since the information they require will now be available at a transaction level.

When will E-Invoicing get implemented?

As per the notifications, The E-Invoices would be applicable mandatorily (for Specified persons only) from 1st April 2020, Although Registered Person can opt it on a voluntary basis also

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