Manage your GST e-invoicing digitally with your cloud ERP software.

This article was published on: 28/01/21 11:04 AM

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“Progress is impossible without change, and those who cannot change their minds cannot change anything.” – George Bernard Shaw


E-Invoicing of GST is probably the most sought-after topic of discussion since 2020 in the finance sector. In 2019, Finance Minister Nirmala Sitharaman had introduced the filing of GST, electronically for companies with turnovers of more than 100 crores. Owing to the pandemic the transition was delayed and is now being formally introduced phase-wise. However, companies over 100 crores have started filing the E-Invoice mandate since 1st January 2021. While companies over 500 crores have already filed since November 2020.


Are you worried that this system might add on to your workload at this hour of resurrection?


The good news is, that it is easiest to automatically file your E-Invoice with your ERP software which has all the compliances fit in as per your company requirements.


One of our clients in the Textile industry was finding it a challenge to adhere to the new system of E-Invoicing in GST. Our biztech experts were successfully able to virtually train the accounts department how to file the GST E-Invoice and thereafter they have been able to take over the challenge with ease and focus on other bigger issues in managing their business.


Expand ERP India’s best fit ERP software is all set to bring in this change in financial systems along with the country as we too believe in progression and development. With our best fit ERP software best fit according to your company’s specific needs, E-Invoicing will be an easy task to overcome.


Some important knowhow about E-Invoicing:


E-Invoicing is a process in which all the B2B invoices created by an accounting software will be validated electronically by GSTN. E-Invoice does not mean generation of invoices from a central portal of the tax department, as any such centralization will bring unnecessary restriction on the way trade is conducted. In fact, taxpayers have different requirements and expectations, which can’t be met from one software generating e-invoices from a portal for the whole country.


Invoice generated by each software may look the same, however, they can’t be understood by another computer system even though business users understand them fully. For example, an Invoice generated by the SAP system cannot be read by a machine which is using the ‘Tally’ system. Therefore, the need was felt to standardize the format in which electronic data of an Invoice could be shared with others to ensure there is interoperability of the data. There would not be any change in the electronic creation of invoices. Only standard format needed to be implemented in all the accounting and billing software so that it can generate JSON of each invoice in such format which can be uploaded on GST Portal for validation and approval.


GST Council has given the responsibility to design the standard of e-invoice and update the same from time to time to GSTN which is the custodian of Returns and invoices contained in the same. Adoption of e-invoice by GST System is not only part of Tax reform but also a Business reform as it makes the e-invoices completely inter-operable eliminating transcription and other errors.

Benefits on E-Invoicing System:


Better taxpayer services – One time reporting on B2B invoice data in the form it is generated to reduce reporting in multiple formats. Sales and purchase register, E-way bills can also be generated by using this format. There will also be a substantial reduction in input credit verification issues as same data will be reported to the tax department as well to the buyer in his inward supply (purchase) register.On receipt of information through GST System as buyer can do reconciliation with his Purchase Order and accept/reject in time under New Return.

Goods and Services Tax (GST), a major reform in the field of indirect taxation, was implemented almost 3 years ago and the technology vertical appears to be still in the growing stage. The GST laws are getting structured and reformed with each GST Council Meeting in order to make them more feasible. And, this is evident that managing GST compliance is very much dependent on technology.


All the key aspects starting from generating e-invoices, GST registration till filing of the return, raising of e-waybill, filing of the refund claim, etc. and the inter-relating of all these aspects on the PAN India basis is dependent on the technology.


Digitalization has leveraged the need for best in class technology in managing GST compliance. However, even after all the efforts made by the government, enterprises are still facing issues with GST, e-way bills, and e-invoicing.
Step by Step Process to Generate an E-invoice under GST


Step 1 –  Invoice will be generated by the supplier in his own accounting or billing system


Step 2 – JSON file will be generated by the supplier to upload on the IRP.


Step 3 (Optional) –  Unique Invoice Reference Number (‘IRN’) can be generated by the supplier on the basis of 4 parameters like Supplier GSTIN, invoice number, financial year and document type.


Step 4 –  Supplier will upload the JSON file of the e-invoice along with IRN already generated directly on the IRP or through GSPs.


Step 5 – IRP will generate IRN and validate IRN of JSON if already uploaded by the supplier. IRP will add its signature on the invoice data as well as a QR code to the JSON.


Step 6 – Supplier will download digitally signed JSON with IRN along with a QR code. IRP will share back digitally signed e-invoice to seller and recipient if email id’s are mentioned on the e-invoice.


The generation of E-Invoicing will be the responsibility of the taxpayer who will be required to report the same to Invoice Registration Portal (IRP) for authentication, which in turn will generate a unique reference number (URN) and digital sign the e-invoice and also generate a QR code and will return the invoice to the seller. IRP will also send the digitally signed e-invoice to the recipient of the document on the email provided in the e-invoice. The GST Council has approved the introduction of ‘E-invoicing’ or ‘electronic invoicing’ in a phased manner for reporting of business to business (B2B) invoices to GST System, starting from 1st January 2020 on a voluntary basis. Since there was no standard for e-invoice existing in the country, the standard for the same has been finalized after consultation with trade/industry bodies as well as ICAI after keeping the draft in public place.

Key Benefits of adopting Expand ERP Software


1. Easy Integration and Deployment – Seamless Integration with all the leading ERPs such as SAP, Oracle, Microsoft Navision, etc. which does not require any additional hardware or software for integration.


2. Customizable – It can be customised as per the requirement of the enterprise to ensure maximum compliance and growth under GST.


3. Accurate Cash Flow Management – Reduces cash flow mismanagement by paying taxes on time and proper reporting thereby ensuring efficiency in compliance cost.


4. Reduces Errors – Data validation checks are initiated to eliminate duplicity and ensure factual precision.


5. Robust Reconciliation – Robust reconciliation module for finding discrepancies in ITC claimed and reporting done by the supplier. Thereby, ensuring 100% accurate ITC claim.


6. Risk Management – An intelligent dashboard that provides a compliance overview to detect tax risk and ensure tax efficiency.


7. Secure and Reliable – We are affiliated with ISO, VAPT certificate, and 2-factor authentication on HTTPS secured gateway ensuring safety and security.


8. Compliance Alert and Notifications – Automated reminders to ensure compliance is done on time. Thus, achieving efficiency in compliance cost.


9. Made in India – Since it is made in India it knows the Indian Government compliances for all industries


Our GST compliance solutions have enabled enterprises to comply with the provisions of GST effectively and efficiently. These solutions are created under the strict supervision of financial and technological experts that enables enterprises with better growth and governance under GST. Adopt Expand ERP software for the easy transition of your financial invoices along with your daily business operations and see your organisation grow fast.


For more information contact +91 9007026542

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