Benefits of E Invoicing & Billing

14 March, 2023

From 1st April 2022, the Central Board of Indirect Taxes and Customs (CBIC) mandated electronic invoicing for businesses. Taxpayers who own businesses with a turnover exceeding ₹ 50 crore must create invoices and bills electronically, the details of which will be sent directly to the E-Way bill portal of Goods and Services Taxes (GST). Here, we talk about e-invoicing and its numerous advantages.

E-invoicing & Billing

E-invoicing or electronic invoicing is a government-backed digital billing system, where business-to-business (B2B) invoices are generated online through the Goods and Services Tax Network (GSTN). As a business owner with a turnover exceeding ₹50 crore, you can no longer generate your own computerised bills. Users must register with the Invoice Registration Portal (IRP) and report the invoices in a format mandated by the GSTN.

Benefits of E-invoicing

Here are reasons why the new e-invoicing system is beneficial for your business.

Increased transparency: Prior to e-invoicing, the government was unaware of the transaction between large businesses and their vendors, leading to tax evasion. E-invoicing will ensure maximum transparency so that tax authorities can take the necessary steps with solid evidence, as the online system cannot be manipulated.

Reduces fraud and curb tax evasion: The most important objective of e-invoicing is the prevention of fraud. With the new system, the tax authorities will have access to the complete trail of B2B invoices. Automated systems can match the input credit and output tax in case of discrepancies. E-invoicing also prevents swindlers from getting away with fake invoices.

Live invoice tracking: Tax authorities can track the invoices generated by businesses in real-time. That way, you can claim the input tax credit (ITC) at the earliest.

Low cost: The advantages of soft copy of invoices is the reduced cost. Since the invoices get stored in the government database automatically, you can avoid the printing and mailing costs at the very least.

Easily accessible to buyers: Once you upload the e-invoice on the GST portal, the receiver can access the bill, which is shared on the email address provided on the bill. That way, the buyer can immediately reconcile the purchase order with the invoice and report in the case of any discrepancies.

Easy e-way bill generation: The e-way bill is an electronic copy comprising GST details of the receiver, PIN code, invoice number and date, goods’ value, transport document number, along with the transporter details. With e-invoicing, you can avoid the tedious task of a manual way-bill generation. Part A of the e-way bill consisting of the invoice details gets updated automatically on the e-way bill from the GST Portal.

Enables interoperability: The GSTN generates an invoice in a standard format, allowing other invoice-generating software to read the e-invoice.

Eliminates transcription errors: After the GSTN authenticates the e-invoice, it gets uploaded on a common portal allowing multipurpose reporting. The accounting team need not make manual entries for every new report. The buyer, too, can upload the details in their purchase register.

QR code generation: The GST portal enables you to create a Quick Response (QR) code, that, when scanned, can generate the e-invoice umpteen times.

One-time invoice reporting: Once you report your invoices, the IRP authenticates and validates the invoice and issues an Invoice Reference Number (IRN). Therefore, you can reduce the reporting of the same invoice in multiple formats, i.e., Goods and Services Tax Return 1 (GSTR-1), e-way bill, etc.

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HDFC Bank offers a host of solutions for all your business needs. With an HDFC Bank Current Account, you can manage your payments and collections via the ECS facility. You can also apply for unsecured Business Loans at competitive interest rates and access state-of-the-art digital solutions such as SmartHub Vyapar to help you embrace a brighter and better digital future for your business.

Continue Reading More About Aadhar Enabled Payment System Here.

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​​​​​​​*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. HDFC Bank SmartHub Vyapar is available to only Individual & Sole Proprietorship entity and for select Current Account variants only. For other entity types, please connect with the nearest branch.