E Invoice

Overview

‘e-Invoicing’ means reporting details of specified GST documents to a Government-notified portal and obtaining a reference number. (It doesn’t mean generation of Invoice by a Government portal.)

Even in the e-Invoicing scenario, taxpayers will continue to create their GST Invoices on their own Accounting/Billing/ERP Systems.

These Invoices will now be reported to ‘Invoice Registration Portal (IRP)’ in a standard format called ‘schema’ & notified as Form GST INV-1

 

Advantages

e-Invoice has many advantages for businesses such as standardisation, inter-operability, auto-population of Invoice details into GST return and other forms (like e-way bill), reduction in processing costs, reduction in disputes, improvement in payment cycles and thereby improving overall business efficiency. Huge advancements in technology sophistication, increased penetration of internet along with availability of computer systems at reasonable cost has made
‘e-Invoice’, a popular choice worldwide.

 

Implications for Businesses:

 

As mentioned earlier, businesses will continue to issue Invoices as they are doing now. Necessary changes on account of e-Invoicing requirement (i.e. to enable reporting of Invoices to IRP and obtain IRN), will be made by ERP/Accounting and Billing Software providers in their respective software. They need to get the updated version having this facility.