E-Invoicing under GST means creating electronic invoices as per the GST law. Just like how businesses use e-way bills for moving goods. Certain GST-registered businesses need to generate e-invoices for their transactions. This e-Invoicing has begun as a mandate for businesses exceeding 500 crore turnover. Now, extending to businesses with 5 crore turnover.
As of April 30, 2023, there was no specific time limit imposed by the GST systems for generating e-invoices in India. However, starting from August 1, 2023, a new requirement was introduced for taxpayers with an AATO equal to or exceeding INR 5 crore. These taxpayers now need to generate e-invoices for their tax invoices and credit-debit notes within 7 days of the invoice date. Failure to comply with this timeline will result in such invoices and CDNs being considered non-compliant.
On May 6, 2023, the department decided to defer the implementation of the 7-day time limit. For reporting old e-invoices on the IRP time limit was extended by three months. To provide businesses with additional time to adjust to the new reporting requirements. Also, there is still no defined time limit or period within which e-invoices must be generated for other applicable taxpayers.
E-Invoicing, also known as electronic invoicing, is a streamlined system. This involves electronic authentication of B2B invoices and other relevant documents by GSTN.
E-Invoicing is not the generation of invoices directly on the GST portal. It is the submission of pre-generated standard invoices on a dedicated e-invoice portal. This process automates the reporting process by enabling the input of invoice details only once. To facilitate this, the CBIC has designated specific common portals for e-invoice preparation.
Under this e-invoicing system, each invoice is assigned a unique identification number by the IRP. This eliminates the need for manual data entry when filing GSTR-1 returns.
E-Invoicing was implemented to streamline and digitize invoicing processes. The implementation of e-invoicing is based on the turnover threshold limits.
According to the gist of the contents of the latest e-invoice format as notified on 30th July 2020 via Notification No.60/2020 – Central Tax:
1. 12 sections (mandatory + optional) and six annexures consisting of a total of 138 fields.
2. Out of the 12 sections, five are mandatory, and seven are optional. Two annexures are mandatory.
3. The five mandatory sections are basic details, supplier information, recipient information, invoice item details, and document total. The two mandatory annexures are details of the items and the document total.
With Swipe businesses can create e-invoices in a single click. Swipe, also helps businesses create and share unlimited invoices for free in less than 10 seconds. Swipe helps in tracking sales, inventory, customers, vendors, purchase orders, and setting up online stores.
Swipe has various features such as user-friendly interface, Customization of Invoices, Secure cloud storage, auto-payment reminders, and multiple payment gateways to help businesses.
Swipe also enables businesses to generate profit and loss statements, sales reports, and tax returns with a single click. Overall, Swipe assists business owners in gaining control of their operations. With the numerous features Swipe helps in simplify invoicing, reducing errors and saving time.
In conclusion, E-invoicing offers a transformative solution to streamline your invoicing processes, enhance efficiency, and reduce costs. By eliminating manual tasks, improving accuracy, and accelerating payment cycles, businesses can achieve significant operational benefits. Utilizing Swipe as a GST Suvidha Provider (GSP) on the e-invoice portal can further simplify invoicing processes, reduce errors, and save time.
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