The E-Invoicing system has been introduced to streamline the invoicing process for businesses and reduce instances of tax evasion. While it has been hailed as a step in the right direction, there are concerns regarding its implementation and impact. Some businesses are struggling to adapt to the new system. There are also concerns about data security and privacy, as businesses have to share sensitive financial information with the government.
Furthermore, smaller businesses may face challenges in complying with the regulations, which could impact their compliance (but we have a solution for that). Here we will explore these issues and concerns surrounding the E-Invoicing system and provide recommendations for addressing them.
Below are some of the problems taxpayers have faced since the implementation of e-invoicing began
To ensure a smooth transfer of invoice data to the IRP and e-invoice back to the ERP system, businesses must integrate their ERP system with the Invoice Registration Portal through a GST Suvidha Provider (GSP) or an Application Suvidha Provider (ASP). To facilitate this integration, the GSTN developed a customisable API that provides scope to make changes as per the standard e-invoice schema.
However, for companies that produce a large number of invoices, the lack of direct integration with the IRP may prove to be a problem
BUSY E-Invoicing Software helps you circumvent these problems by eliminating the need to go to the e-invoice portal to generate e-invoices. You only need to set up the software once, which takes a very short time, and then you can generate e-invoices automatically as and when required, in just one click! Watch the video below to see how easy it is to generate E-Invoices using BUSY.
While B2C invoices just need e-way bills (wherever an e-way bill is applicable), B2B invoices require both e-way bills and e-invoices.
Sorting the B2C invoices from the B2B ones will take a lot of time and effort, unless a robust E-Invoice Software is used to help automate this process.
If a minor change is required to an e-invoice, that is the same as generating a new e-invoice, since they cannot be partially cancelled. A user only has 24 hours to cancel the e-invoice on the IRP itself. Thereafter, it can only be cancelled on the GST Portal.
A user cannot use the invoice number of the cancelled e-invoice in the new one, as that is basically the same as making changes to the original one. A fresh e-invoice needs to be generated, and users need to ensure that in addition to fixing any errors of the cancelled e-invoice, they are changing the invoice number as well.
The IRP does not store any data post 24 hours. Since there is no archive, users will need to use alternate solutions to keep a record of the information uploaded to the IRP. However, details of the e-invoices generated on the IRP are sent to the GST Portal. Users can see this information reflected in their GSTR-1 Return.
Even though the e-invoice portal shares data with the GST and E-Way Bill Portals, taxpayers would be well served to carry out a reconciliation of that data, as any errors, even in the data shared between the portals, will lead to penalisation. It is best if you use a tool or a robust GST Software to do the reconciliation for you, as it could be very time consuming depending on the amount of data.
Since there is no ITC involved, B2C invoices experience the most fraud. E-invoicing is not currently applied to B2C transactions. But the legislation mandates specific organisations (to which e-invoicing is applicable. Dynamic QR codes must be generated and printed for B2C invoices for businesses with annual revenue of less than Rs. 500 Core as of December 15, 2020.
The penalty for failing to comply with the dynamic QR code rules between December 1, 2020, and March 31, 2021, will be waived if the eligible registered person does so starting on April 1, 2021, according to a CBIC notification. This requirement has come into force from 1st December 2020.
E-invoicing only applies to B2B bills, as was previously stated. A separate process must be in place for delivery challans, bills of supplies, job work, and other related transactions. It takes a lot of time and effort to design multiple workflows for various sorts of transactions.
E-Invoicing is a relatively new concept under GST, implemented in India after multiple meetings, conferences, discussions, and feedback sessions. The new e-invoicing system’s difficulties won’t become evident until the taxpayer uses it regularly. However, we can guarantee that if you choose busy e-invoicing software, shifting to an e-invoicing system will be simple and painless. Considering the difficulties faced by taxpayers, we created and developed this e-invoicing programme.