What is electronic invoicing?

Electronic invoicing or e-Invoicing in India is a system of creating invoices where software-generated invoices can be accessed by other software, reducing the need for new data entry or errors. In simpler terms, it is an invoice created in a standard format that allows electronic invoice information to be shared with others, ultimately ensuring information compatibility.

Electronic invoicing refers to a system whereby business-to-business (B2B) invoices, export invoices, and credit/debit memos are electronically certified by the GSTN for use on the GST common website. An electronic invoice verifies transactions and assigns each invoice a unique identifier (Invoice Record Number or IRN), which is then processed by the GSTN Invoice Record Site (IRP).

Electronic invoicing is the new way of invoicing and will no doubt be the future of invoicing. Electronic invoicing was introduced for a variety of reasons and is a superior approach to PDF or traditional paper documents. Electronic invoicing is only possible with specialized software. Marg ERP is a remarkable e-invoicing software with the latest features and updates.

The provider's billing software generates an electronic invoice in a structured format with data encrypted in XML or EDI. Alternatively, the format is created on web-based forms and distributed to both sellers and buyers.

At present, e-invoicing is mandatory for companies with an annual turnover of more than Rs 20 crore. Finance Minister Tarun Bajaj said in an interview that initially only companies with an annual turnover of Rs. Rs 500 crore were eligible to use e-invoicing. However, this figure has been reduced to Rs. 100 crore and Rs. Rs 20 crore, is now to be reduced to Rs.10 crore from 1.10.2022

According to tax officials, e-invoices have a number of advantages, including:

Automatically report invoices in GST refunds and generate electronic invoices automatically.

It will eliminate mismatch errors, e-Invoice solves, and closes a critical data reconciliation gap under GST.

The electronic invoice enables real-time monitoring of the invoices generated by the supplier.

Standardization and interoperability are facilitated with e-invoicing, resulting in fewer conflicts between transaction parties, shorter payment cycles, lower processing costs, and greater overall business efficiencies.

Marg's e-invoicing software is the most advanced inventory accounting software that allows users to create professional e-invoices in a standard format that can be easily auto-populated in GSTR 1 during the GST filing process. Marg's e-invoicing software is the most user-friendly and affordable software available to start your business. Because Marg's e-invoicing software enables all advanced features, it reduces errors, saves time and effort so you can focus on building your business.

Creating and sending electronic invoices is quick and easy with Marg. Creating electronic invoices only takes a few clicks. This not only saves time, but also gives you the opportunity to get paid faster by customers when you share with them. The buyer does not have to constantly remind the customer about the payment.

Upload multiple invoices to the IRP (Invoice Registration Portal) directly from the GSTN portal without visiting any other source and submit GST refunds instantly

Upload B2B transactional invoices electronically to the GSTN portal and the details will be automatically populated in GST ANX-1 and GST ANX-2

Marg ERP automatically validates your data to identify errors, violations, incorrect entries and missing mandatory fields to ensure 100% regulatory compliance

Electronic invoicing helps you with data reconciliation and accuracy.

You can track electronic invoices in real time.

It simplifies the tax return process by automatically filling in e-invoice details on tax return forms and e-invoices.

All details of the transaction are available online at any time. This would eliminate the need for frequent audits and surveys.

The differences in the data can be seen by comparing entry credit and departure tax.

This initiative will also help the tax administration to identify false invoices.