E-invoicing, a revolutionary digital transformation in the realm of tax compliance and accounting, has emerged as a game-changer for businesses in India. It represents a significant stride towards simplifying the tax ecosystem, reducing tax evasion, and enhancing transparency in financial transactions. The Indian government, in its quest to streamline the taxation process and curb tax fraud, introduced e-invoicing as a mandatory requirement for certain businesses, ushering in a new era of modernised invoicing practices.
In this blog, Finsmart Accounting – one of the best accounting outsourcing companies in India – will share everything about e-invoicing for businesses to help them get started in the right direction.
An e-invoice, or electronic invoice, is a digital document that is exchanged between a supplier and buyer and validated by the government tax portal.
What are the latest e-invoicing amendments?
Latest amendments in GST laws regarding the introduction of the “e-invoice system,” which came into effect from 1st August 2023.
Here are the key changes in relation to the e-invoice system:
- This system will be applicable to all taxpayers whose turnover exceeds INR 5 crores in any of the Financial Years since FY 17-18.
- The e-invoice system will be applicable to the supply of goods or services or both.
- It will also apply to export transactions, whether with or without payment.
- The e-invoice system will be mandatory for B2B transactions and supplies to SEZ Units.
Recommended reading: Everything you need to know about FaaS accounting
What is the process of e-invoicing?
The process for the e-invoicing system is as follows:
- Taxpayers need to register themselves on the new e-invoice portal called the “Invoice Registration Portal” (IRP).
- Invoices must be uploaded on the IRP, either individually or in bulk, as applicable.
- Once uploaded, the IRP will provide the signed invoice with Invoice Reference Number (IRN) and QR code.
- Sellers are required to issue the invoice to the buyer along with the IRN and QR Code.
- The details of the invoice will be automatically updated in GSTR-1, and sellers are responsible for reviewing and filing GSTR-1 on a monthly basis.
Which software support the process of e-invoicing?
There are several software solutions available that can help businesses integrate with the Goods and Services Tax (GST) portal in India for e-invoicing and other tax-related processes. Here are the best e-invoicing solutions recommended for 2023-24:
- Tally.ERP 9: Tally Solutions’ ERP software is widely used in India for accounting and compliance management. It offers GST-ready features and seamless integration with the GST portal for filing returns and generating e-invoices.
- Zoho Books: Zoho Books is a cloud-based accounting software that offers GST-compliant invoicing and integration with the GST portal for simplified tax filing.
- SAP GST: SAP, a well-known provider of enterprise resource planning (ERP) solutions, has GST integration capabilities for businesses to comply with Indian tax laws, including e-invoicing.
- Marg ERP 9+: This is another popular accounting software in India that provides GST integration, including e-invoicing, e-way bill generation, and GST return filing.
- ClearTax GST: ClearTax offers a GST-compliant platform that facilitates e-invoicing, GST return filing, and other tax-related processes.
- SARAL GST: SARAL GST is a comprehensive GST software solution that helps businesses manage e-invoicing, tax returns, and other GST compliance tasks.
Recommended watch: Mayura Dolas, Co-Founder & Director of Driya Creatives, India shares her experience of outsourcing with Finsmart Accounting:
If you wish to get started with e-invoicing, these are the most recommended software out there!
What services does Finsmart offer w.r.t e-invoicing?
Finsmart Accounting has expertise across several leading accounting software including mentioned above. We are also the authorised partner of Zoho Books and have helped several companies to move into e-invoicing.
We understand that this process can be time-consuming and complex. Therefore, we are pleased to offer our assistance for the one-time setup or ongoing management of the e-invoicing process.
The one-time setup includes the following:
- Creation of login credentials for the IRP.
- Uploading all August 2023 invoices on the IRP.
- Obtaining e-invoices from the portal.
- Sharing the e-invoices with your management.
From September 2023 onwards, we then continue sharing monthly e-invoices generated from the portal.
If you’d like to request a quote, please send an email to firstname.lastname@example.org with your details and requirements. We’ll be glad to provide you with a personalised quote as soon as possible. Feel free to include any specific information or questions you may have, and we’ll ensure a prompt and comprehensive response. Looking forward to hearing from you!
Check out these services that Indian and global businesses trust us with:
Bookkeeping outsourcing services for CPAs and accounting firms
Outsourced payroll providers in India
Check out our recently published blogs as well:
Audit preparation checklist for smooth financial review
Importance of communication and collaboration during offshoring
1. Hiring Certified Tax Preparer in 2023: Useful Tips to Consider
2. FaaS Accounting: Meaning, Difference, Benefits, and More
3. Statutory Compliances in Payroll: How Finsmart Can Help
4. 6 Accounting and Tax Software Widely Used By CPAs in the USA
Shalaka Joshi is the founder of Finsmart Accounting and operates in the capacity of Director. A Chartered Accountant passionate about outsourcing and problem-solving, Shalaka has more than 20 years of experience in the field of accounting, payroll and MIS reports.