E-invoicing is the prevalent invoicing system where business-to-business (B2B) invoices are digitally prepared in a fixed format and authenticated by the Goods and Services Tax Network (GSTN). This ensures that a common format is followed by all businesses before reporting invoices to the GST portal. Here is a complete guide on how to register on GST portal.
All B2B invoices can be uploaded to the Invoice Registration Portal (IRP) using the e-Invoice System, which is available to GST registered individuals. The user receives a unique Invoice Reference Number (IRN), an e-invoice that has been digitally signed, and a QR code from the IRP.
How to Register for E-Invoicing?
Step 1 : Use the e-invoice portal
The e-invoice system’s registration process is simple for GST taxpayers. A taxpayer can access the e-invoice system with the same login credentials if they have already registered with the e-way bill site.
A taxpayer can register on the e-invoice system if they are not currently enrolled in the EWB portal. Both a mobile phone registered with the GST system and a GSTIN issued by the GST system are required of the taxpayer. To sign up for e-invoicing, just visit https://einvoice1.gst.gov.in/.
Step 2 : E-invoicing Facilitation
To submit the request, the user must provide their GSTIN, complete the captcha, and click “Go.” The user will be sent to the e-invoice registration form after submitting the request.
Step 3 : Fill out the registration form with your information
The applicant’s information will be displayed in the e-invoice registration form based on the submitted GSTIN. This information includes the applicant’s name, trade name, email address, and mobile number as they appear on the GST e-invoice portal. By selecting “Send OTP” and having the registration form validated, the user can verify the information provided.
What Are the Benefits of E-Invoice for Businesses?
Conserves Time
One of the biggest advantages of e-invoicing for all firms is time savings. The procedure of creating an e-invoice is entirely digital and takes only a few minutes. In the past, creating traditional invoices and uploading the invoice data to the government portal for tax filing purposes took a lot of time. It is crucial to aware about tax collected at source.
The time needed to process, track, submit, and approve bills has decreased because of e-invoicing. Employee productivity has increased as a result, since they are now able to devote more of their time to other crucial business facets. E-invoicing allows for speedier payment processing times as well as trouble-free information aggregation.
Increased Precision
Among the advantages of e-invoicing are enhanced precision and decreased instances of human error. Error is minimal because you are not required to manually enter any data. The data is extracted straight from the e-invoices, and since the billing systems also keep track of the data, this further guarantees that no mistakes are made when e-invoicing. Check How GST E-Invoice Prevent Frauds In Business Transactions?
This will enable increased transparency, which is an additional advantage of e-invoicing excellent accuracy. Because there won’t be any inaccuracies in the e-invoices, there will be improved communication between buyers and vendors and time saved in the process.
Economical
Businesses find that e-invoicing is more economical than using the conventional method of invoicing and reporting. Since everything is done digitally, every business may save a lot of money. Energy-wise, this is also advantageous because e-invoicing uses less energy than traditional paper invoicing.
Financial Operation Simplicity
One advantage of e-invoicing is its ease of financial operation. Before e-invoicing was introduced, finance operations were more complicated and less clear, especially for MSMEs.
E-invoicing relieves these firms of some of their burden because it reduces the amount of time spent on administrative tasks, which are necessary when managing several business components. While traditional invoicing is labor-intensive, e-invoicing is less difficult.
Data Safety
One of the primary reasons e-invoicing is beneficial to organizations is that it guarantees data protection. Invoices were not secure in the past, which increased the possibility of fraud and tax leakage.
Some companies engaged in unethical actions by using fictitious invoices. The likelihood of fraud has significantly dropped since e-invoicing was introduced since it is impossible to create and submit a fraudulent invoice. The authenticity and data security of all electronically generated invoices are guaranteed by authentication.
Boosts Output
MSMEs’ productivity can be increased using e-invoice. Historically, creating invoices was a laborious and time-consuming process that took hours of focus and effort. In addition, the invoice needed to be printed again after the issue was fixed, in the event that a human error resulted in an error or disparity.
Such an effort is no longer necessary with the advent of e-invoicing, as it takes less time and frees up employees’ time for other activities. Now that they have more time on their hands, they may use it for more worthwhile endeavors.
Monitoring
The post-pandemic corporate world benefits from e-invoicing since it greatly simplifies and expedites tracking. Because every detail you submit in the e-invoice is automatically kept and accessible to you whenever necessary, it also offers you greater control. Businesses may more easily determine whether their company is headed in the right way by using e-invoicing.
Takeaway
The e-invoicing system has greatly reduced instances of fake GST invoices, thanks to its common format and ease of upload. It ensures businesses to claim input tax credit on real GST invoices due to automation and thorough checks. If anyone tries to claim a fake tax credit, then it is easy for GSTN to track them.
FAQs
- Which situations does e-invoicing not apply to?
The application of e-invoicing does not apply to any provider of a taxable service that is an insurer, banking company, financial institution, or non-banking financial company.
- Is it possible for us to edit the e-invoice?
Once a full day has passed since the e-invoice was sent, taxpayers will not be able to cancel it. Additionally, e-invoices cannot be amended using the e-invoice portal. Either a debit note must be issued by the taxpayer, or they must edit or delete the e-invoice via the GST system.
- Can an e-invoice be cancelled after 24 hours?
The IRP only allows for the cancellation of an e-invoice within a day. Furthermore, as partial cancellation is not permitted, the entire invoice would need to be cancelled. On the IRP, e-invoice modifications are not possible.