In the 35th meeting held by the GST Council, a proposition has been made to implement a particular system known as E-invoicing, which would be relevant to specific categories of businesses.
The term ‘E-invoicing’ refers to the submission of a standard invoice which has already been generated on businesses accounting system to Invoice Registration Portal (IRP) and validation of the same. In this way, it automates the process of multi-purpose reporting by furnishing the invoice details only for a single time. In fact, ‘Electronic invoicing’ or ‘E-invoicing’ is a system where the B2B invoices are electronically validated by GSTN on the common portal for the sake of using them further.
Under this system, an identification number would be generated against each invoice by the Invoice Registration Portal (IRP), which would be subsequently managed by the GSTN. The entire invoice details would be transferred from IRP to both the E-way bill portal as well as the GST portal concurrently. In this way, it would not be required to enter the data manually while filing the ANX-1/GST returns, or while generating part-A of the concerned E-way bill.
The businesses are expected to reap many benefits from the process of E-invoicing. Some of these are given below:
In the GST circles, many believe that E-invoicing would definitely help to decrease tax evasions in an effective manner. Here are some of the ways how this is made possible: