Accelerated E-Invoicing Solution Enforced from Jan 1st – Are You Ready for Automated Invoice Process?

The government has issued a notification with the exercise of the power conferred by Central Goods and Services tax rule 2017, on the recommendation of Council making an amendment and notifying that E-invoicing is compulsory for companies who have a turnover of over 100 crores and above. Accelerated E-Invoicing solution integration is imminent.

The Director, of the Government of India, has issued the notification that from 1st January 2021 a new e-invoicing rule for GST will be enforced. Earlier, this rule was for companies having a turnover of 500 crores and above.

The Ministry of Finance along with the Department of Revenue in collaboration with the Central Board of Indirect taxes and Customs under notification No. 88/ 2020 decided that taxpayers will have to generate their invoices on the internal system but then will have to report online.

Why Integrate Accelerated E-Invoicing solution with your company’s accounting?

Mandatory requirement E-invoice by the businesses requires an electronic invoicing solution for B2b transactions.

 It was compulsory for the business above 500 crores, recently with the new notification from the ministry of finance stating that it is required for all the companies to have a turnover of rupees 100 crores coming into effect from 1st January 2021.

In the Goods and Service Tax (GST) law, e-invoicing is made compulsory. The accelerated E-invoicing solution will have to be implemented by the companies with the GST Returns filing as per the CBIC. Under this notification, an e-invoice under GSTN will have to be registered. The taxpayer will have to generate an invoice on their internal system and then report the e-invoices online at the Invoice registration Portal (IRP).

E-invoicing under GST: exceptions:

The E-invoice system will apply to GST registered companies. The exceptions include the insurance, financial institutions, Special Economic Zones (SEZ) units, NBFCs, GTA, Banking, passenger transportation services, and the sale of movie tickets.

E-Invoicing Solutions applicability

Internal systems ERP, billing, accounting software has to have accelerated integrated E-invoice solutions. Accelerate e-invoicing solution simplifies the data entry of the invoices and streamlines the matching process.

Why Accelerate e-invoicing solution? 

The simple electronic invoicing solution saves time and resources. Further, it increases compliance and performance. The electronic invoicing solution has tools for managing the invoices resourcefully such that procurement has better organized and reliable data to conduct analysis activities.

Accelerate e-invoicing solution comes with collaborative features that help complete the integration with the suppliers in the invoicing workflow. Results are a fluid exchange of information between the company and suppliers. It can benefit from obtaining faster ROI.

A lot of time would be saved for suppliers. The errors caused because of manual entries will be reduced. Suppliers can modify or correct the data of invoices online directly. Contract compliance checks and three-way matching can be performed at the time of procurement, leading to the identification of the gaps between orders, contracts, and invoices.

For the end-users, there is an ergonomic dashboard. The dashboard enables quick visualization of all the information. The Dashboard shows invoicing related alerts on the orders, the status of the disputes, and invoicing gaps.

The key features of any electronic invoicing solution are browsing for billing requests from the suppliers, managing invoice matching, approving the billing request, rejecting the billing requests, and sending to the ERP for making payments.

Why Accelerate e-invoicing solution has become mandatory under GST

E-invoicing is an electric authentication method under GST. Under this mechanism, the B2B invoices that are generated by the business would be authenticated on the government’s GSTN portal. To manage the invoices on Invoice Registration Portal (IRP), a unique identification number for each of the invoices will be generated called the Invoice Reference Number or IRN.

In real-time, an e-invoice will be authenticated and it will be available on the government’s GST portal and the EWB portal as well.

The GST council has approved the E-invoicing template and mechanism based on the new GST return system for all the taxpayers. There has been a draft template of e-invoice schema for the industry to understand it better.

All the invoice information would be transferred from the GST portal and E-way bill Portal in real-time, eliminating the need for manual data entry while filing the GST returns and generation of part A of the e-way bill. The information would pass directly from IRP to the GST portal.

With less than a month pending, the mid-sized companies will have to gear up soon for the electronic invoicing solution. The new E-invoice authentication on the GSTN portal update is being welcomed by many senior advisors at various companies. It will aid in curbing tax evasion, increase tax collection, and improve the economy.

Benefits of E-invoicing under GST applicability

Complying with the new requirement, we provide an Accelerated e-invoicing solution, helping gear up your IT processes and systems as per the new invoicing regulations. Train your employees to comply with new requirements of automating tax compliances and become efficient in the management of tax compliances. 

Complying with the new requirement, we provide an Accelerated e-invoicing solution, helping gear up your IT processes and systems as per the new invoicing regulations. Train your employees to comply with new requirements of automating tax compliances and become efficient in the management of tax compliances. 

1)  Tax Evading becomes difficult: The government has been facing tax leakage and tax frauds by using fake invoices even before the implementation of GST in 2017. This E-invoicing update is to put an end to these issues faced by the government. Now by mandatory authorization of every invoice from the government portal, tax evasion, and fraud would be easily caught.

2) Plug the tax leakage: The taxpayers will also benefit from it like one-time reporting of invoice details for all GST fillings and Minimization of invoice mismatches during reconciliation.

3) Interoperability: As companies and suppliers have different and multiple software, the standard invoicing system will mean interoperability between their multiple software solutions.

There will be a reduction in data entry errors as no duplicity of invoices.

1) Real-Time: The real-time tracking of invoices by suppliers is beneficial as it will stop fake invoices and duplicity.

2) Auto-populated invoices: An automated return filing process is possible as the details will be auto-populated for the different returns and will be available on the EWB (Part A).

 The Accelerate e-invoicing solution will facilitate easy and precise ITC claim

 Backward integration and automation of tax return filing process the faster availability of genuine input tax credit. For regulatory bodies and authorities, and the businesses it would advantage lesser possibilities of audits, surveys as information required will be available at the transaction level.  The format adheres to international and other industry standards. Cross country invoice costing reduced. The format of the e-invoice looks meticulous and the single format caters to various industries and businesses. All the existing accounting and electronic invoicing solutions or applications such as SAP or Tally must follow the standard for invoice generation.

• Taxpayers will be able to generate a compliant invoice at the source. GSTN has referred to the Universal Business Language version of the XML and PEPPOL as the most used standard across the world.

The Accelerate e-invoicing solution of the GSTN’s e-invoice contains:

E-invoice Schema: consist of technical field name, description of the field, it is mandatory or not in explanatory notes

Masters: specific set of inputs predefined by GSTN like UQC, invoice type, State code, supply type. E-invoice template: it is made as per GST rules and enables the reader to correlate with the terms used and optional and mandatory fields.

The government started with companies having a turnover of 500 crore rupees. And from January 1st, 2021, it will be for companies 100 crore rupees. Gradually the government has plans to bring all businesses and companies under the scope of electronic invoicing solution from 1st April 2021. Aggregate turnover would include the turnover of all the GSTINs under a single PAN all over India.

E-Invoicing Solution – E-invoicing under GST applicability

A quick point to be noted is E-invoice under GST doesn’t mean invoice generated on the electronic portal rather it means that it is an invoice that has been already reported at authenticated GSTN portal. The lifespan of e-invoice is limited to 24 hours only on the IRP portal but validated e-invoice would be available on the GSTN portal for the financial year.

The Accelerate e-invoicing solution providing electronic e-invoicing solutions is easy to integrate with your billing systems in various ways and we help you in the generation of IRN in a seamless manner such as there is no disturbance to your business process.

The Accelerate e-invoicing solution will provide a demo. Smooth transaction to e-invoicing with ERP integration. The electronic e-invoicing solution will enable smart reconciliation with GSTR-1 and EWB. There will be easy back-up and retrieval of the data of invoices made.