The government has stipulated that invoices issued by such taxpayers during October 2020 without uploading the same E-invoicing portal would be valid if the said process is completed 30 days of the date of invoice,” Rajat Mohan, Senior Partner, AMRG & Associates, told Financial Express On-line. This relief comes as a big respite to the entire industry and this would help mitigate any loss of business due delay in the implementation of e-invoicing, Rajat Mohan added. Meanwhile, the government has made it clear that no such relaxation would be available for the invoices issued from 1 November 2020. Also, the invoices issued in violation of the rule of the CGST Rules 2017 would not be valid.
Electronic invoicing (e-invoicing) is the transmission, reception and processing of digital transactional Invoice documents between suppliers and buyers. E-invoicing enables a company to automate their invoice processing.
The government has postponed the initial phase of implementation of e-invoice till November 2020. The government has notified an e-invoicing system under the goods and services tax (GST) regime which makes it mandatory for large businesses with turnover of over Rs 500 crore to submit sales invoices electronically.
Many Businesses STILL Aren’t Doing This . . . Here’s Why They Should!
Seamless Account Reconciliation
One of the common challenges faced by every supplier is the reconciliation of invoices issued to customers against mismatch errors and payments received. With e-invoicing, customers can send the details of the invoices paid along with the payments to help simplify account reconciliation.
Electronic invoicing allows a significant optimization of the resources used for dealing with it, so the business expenses are reduced. For suppliers, the adoption of e-invoicing helps significantly reduce costs associated with printing, storage, processing, and delivery of paper invoices. Moreover, electronic invoices do not require a physical storage area, so more space is saved and, consequently, rental or electricity fees are saved too. According to Basware, receiving an e-invoice instead of a paper invoice saves up to 90% on processing costs.
With e-invoicing, many unnecessary steps are cut out of the invoicing process. Both you and your customer can save time and increase efficiency using online e-invoicing software. E-Invoicing uses automated and intelligent procedures, reaching better results than manual ones, as well as enabling a significant saving of the time dedicated to them. According to Halverson, electronic invoicing optimized his invoicing processes because it removed steps and leveraged everyday communication methods (email) to make the invoicing process more user-friendly.
With the continuous automation of the invoicing process and the elimination of manual intervention, input errors are reduced to a minimum. E-Invoicing eliminates human errors while data entering and document classification and labelling.
Protection Against Fraud
E-invoicing has developed a very safe system reducing the chances for fraud or document forgery. Electronic invoicing records payments and other monetary operations, so money traces are easier to monitor. The less physical money circulation persists, the more the fraud is reduced. Data is protected against potential document losses or third party's intrusions. The biggest benefits that e-invoicing delivers are transparency and proof.
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