Some Common Myths About E-Invoicing
GSTN electronically verifies B2B invoices under the "e-invoicing" or "electronic invoicing" system before being used on the public GST portal. Every invoice issued under the electronic invoicing system will receive an identification number from the Invoice Registration Portal (IRP), under the control of the GST Network. All invoice data will instantly be sent from this portal to the GST and e-way bill portals.
As a result, since the data is sent directly from the IRP to the GST site, there would be no need for manual data entry when filing ANX-1/GST reports or creating part-A of the e-way bills.
A few common misconceptions about e-invoicing are addressed here, along with some facts about e-invoicing for GST.
Myth: I would have to send invoices via the GST website.
Fact: No. You would keep issuing invoices in the same manner that you have been. You only need to use your billing software's ERP or accounting software to produce the Invoice Reference Number (IRN) for each invoice you send.
Myth: Without billing software or an ERP, e-invoices cannot be generated.
Fact: GSTN will offer free billing software to registered taxpayers with annual revenue under INR 1.5 crore.
Myth: My business would be impacted if the production of IRN took longer than a few minutes.
Fact: More than one Invoice Registration Portal (IRP) will be operational, and the IRP will assign the IRN in less than a millisecond.
Myth: ERP or billing software will need to undergo significant adjustments.
Fact: There won't be a need for substantial modifications on the taxpayers' end. The ERP or billing software will need to make some upgrades and changes.
Myth: IRN, which will be an invoice number
Fact: The billing or ERP system will determine the invoice number. IRN will serve as a citation number. GSTN
Myth: GST compliance will increase with e-invoicing.
Myth: Rather, E-invoices and their reporting will result in lower compliance. When you report to GST, ANX-1, or ANX-2, an E-way Bill will automatically be created if you need them.
Myth: There will be multiple invoice forms accessible for various firms.
Fact: There will be just one type of format. There will be necessary fields and optional fields. Depending on the type of business, these fields may be filled in.
Myth: I cannot issue an electronic invoice if I do not use billing, ERP, or accounting software.
Fact: 8 free accounting and billing tools have been made available by the GSTN to taxpayers with up to 1.5 crores in annual revenue. These can be used to generate electronic invoices.