Tally On Cloud Access from Anywhere, Anytime Access from Anywhere, Anytime Access from Anywhere, Anytime
What is e-Invoice
Electronic invoicing (e-Invoicing) is the exchange of the invoice document between a supplier and a buyer in an integrated electronic format. e-Invoicing is a common B2B practice for many years. It has been the biggest and one of the most talked-about changes when it comes to GST in 2020. Invoicing practices have been quite industry-specific. Despite the proprietary ways of preparing invoices, a unified approach of e-invoicing was taken in good spirit by the overall taxpayers.
With the first phase and second of e-invoice already being implemented for the businesses with a turnover of 100 crores and above, it’s now time for the next phase of e-invoice to be implemented from 1st April,2021 after successful adoption by companies with turnover of more than Rs. 500 CR (that went LIVE from 1st October 2020).
Benefits of e-Invoice in Tally Prime
- With e-invoicing, many unnecessary steps are cut out of the invoicing process. Both you and your customer can save time using online e-invoicing software.
- E-invoicing allows real-time tracking of invoices prepared by a supplier. This allows for faster availability of input tax credit (ITC).
- With paperless invoicing, you do not have to pay for paper or for postal fees. Further, by saving time with e-invoicing instead of using templates and emailing PDFs, you save working time.
- By minimizing manual input and increasing automation, mistakes and typos are reduced.
- Automated electronic processes are cheaper. Electronic documents can be immediately delivered to recipients over email.
- As the e-invoices are generated in a standardised format, the invoice generated from one software can be read by different software as well.
- Know when an invoice has been sent, viewed, and paid when using e-invoicing software. You will know for sure that the invoice is sent and received.
- The e-invoice can be at the customer pronto. Also, it demands less effort and time effort to pay an electronic invoice. Because of that, the customer will most likely pay faster.
What should you do from 1st April,2021?
If you are a business with an annual turnover of 50 crores and above, e-invoice will be applicable, and you need to electronically upload all B2B and B2G invoices to the portal. You need to generate the e-invoice in the required format and upload it to the IRP portal. The IRP portal will authenticate the invoice data and return the file with IRN and digitally-signed QR code.
e-Invoicing mandates that an invoice remains valid only if it has IRN and QR code that is authenticated by the IRP (Invoice Registration Portal). Invoicing is a key process in every business, it’s a necessity to have business management software that will help you seamlessly generate e-invoice without impacting the way you use to operate your business.
