E-invoicing has progressively gained significant popularity as an efficient and cost-effective way of managing financial transactions. It has become a preferred choice across companies of all sizes. However, with this rise in popularity, several myths and misconceptions about e-invoicing have also emerged. Let’s examine some of these myths and separate the facts from the fiction.
A few common misconceptions about e-invoicing and some facts about e-invoicing for GST are addressed here.
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.
Fact: GSTN will offer free billing software to registered taxpayers with annual revenue under Rs 1.5 crore.
Fact: More than one Invoice Registration Portal (IRP) will be operational, and the IRP will assign the IRN in less than a millisecond.
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.
Fact: The billing or ERP system will determine the invoice number. IRN will serve as a citation number.
Fact: 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 needed.
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.
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.
The digitalisation of invoicing has brought about several misconceptions about e-invoicing. By debunking these myths, businesses can better understand the benefits of e-invoicing and leverage its full potential. Ultimately, e-invoicing can streamline invoicing processes, improve cash flow, reduce errors, and help businesses become more efficient and competitive in today’s digital landscape.