Over the years, companies have been replacing paper invoices with electronic versions to improve agility and to gain better insights into their business. In recent years, however, tax authorities and governmental organizations in an increasing number of countries have begun enforcing the use of electronic invoicing (e-Invoicing) by law to combat fraud and save costs, meaning that for many global businesses, moving to e-Invoicing is no longer optional.
The GST Council has decided to introduce with centralized issuance of an unique number (Invoice Reference number) for each B2B invoice on reporting of invoice data to a central portal with effective (Mandate) date from 1 October 2020 for all Tax payers.
Diverse Infotech is an Award-Winning, SAP Gold Partner with 20+ live customers for DCS, eWay Bill and e-Invoice solutions. We help accommodate the essential modifications to make your SAP ECC / S/4 HANA system compliant with the latest e-Invoicing regulations.
Effective from January 2020 on voluntary basis Mandatory from 1 October 2020 Real Time – 64 digits (alpha numeric), QR code, Digital Signature An invoice is valid only if invoice is registered in IRP. Input tax credit can be availed only invoices with valid IRN/eInvoice Manual update in ECC/S4 with 64 digits IRN is not practical GST Simplification -Continuous upload, effective from 1st April 2020, ANX-1, ANX-2 & RET-1 Invoice Reconciliation, Avail Input tax credit & Vendor payment after invoice is uploaded to GSTN
e-Invoicing is the new system through which business to business (B2B) transactions are authenticated electronically by GSTN for further use on the common GSTN portal. The biggest benefits that e-invoicing delivers are transparency and proof.
Today, a transaction between the supplier and recipient is done directly without the government having any proof of the exchange. With e-Invoicing, the moment an invoice is made, it will be uploaded to GSTN portal where pre-validation will be done and a unique number called IRN (Invoice Reference Number) will be issued. Once IRN is issued, the tax invoice will be shared with the recipient also.
e-Invoice further boosts the automation when it comes to GST return filing process. GSTR filing currently involves immense manual work that is prone to errors. e-Invoicing can bring ease, speed and accuracy to this process. Once IRN is issued, it will update the Annx – 1 of the Supplier & if e-waybill is required to be issued, Part – A of the same will be updated. It will also update the Anx-2 of the recipient. Updating GST Returns also saves lot of time, human errors for data entry and also avoids major reconciliation issues.
e-Invoicing provides a push towards a digital economy. Curbing tax evasion and increasing tax collections for the government may ensure that the government will not increase GST rates any further. e-Invoices can be created for every document there is – from debit or credit notes to vehicle invoices. The resultant positive impact on efficiency will lead to minimization if not eradication of data entry errors and greater transparency.
Diverse Infotech is an Award-Winning, SAP Gold Partner with 20+ live customers for DCS, eWay Bill and e-Invoice solutions. We help accommodate the essential modifications to make your SAP ECC / S/4 HANA system compliant with the latest e-Invoicing regulations.
