The tax system in India has seen many changes over the past few years. With the introduction of GST, many other statutory elements like E-bill and E-invoice were introduced. E-invoice is the process of creating a standard invoice processed which is to be followed by all businesses. E-invoice has been made compulsory for all businesses with a turnover of above Rs 500 Cr in the previous financial year.
However according to the latest update on 10th November 2020, it has been modified and stated that all businesses with a total turnover of Rs 100 Cr and above have to implement E-invoicing in their billing and ERP software starting from 1st January 2021. All businesses that fall under the above criteria will be notified to register on the e-invoice portal to start the process of e-invoicing mandatorily. It is to be noted that only those businesses that have been mandated to generate e-invoice and have registered on the portal will only be allowed to generate e-invoices.
Tally, which is a recognized GSP (GST Suvidha Provider), will communicate directly with the IRP (Invoice Registration Portal) to send e-invoices through Tally Prime in real time. After the authentication is done, it will receive the unique IRN (Invoice Reference Number) and QR code details from the IRP and it will be updated in the invoices subsequently. The entire process will be performed in a seamless manner and the enterprise owner can simply print the QR code and IRN on the invoice as part of their regular invoicing process. Along with the e-invoice, the Tally Prime software will also help to generate e-way bill numbers for applicable transactions.
Process of E-invoice Generation:
1. To generate an e-invoice, you need to follow the following process:
2. The seller or supplier fills in the required details as per the stated fields of the E-invoice system.
3. Once the details are submitted and the invoice ready, it has to be exported in the JSON format and uploaded into the IRP (Invoice Reference Portal).
4. Following this, a unique IRN (Invoice Reference Portal) will be generated and once confirmed, the IRP will add its signature on the invoice. IRP will share this JSON file with the GST system as well as E-way Bill system.
Benefits of E-Invoicing with Tally Prime:
1. Generate E-invoice and E-way bill using GSP without any hassles in an easy manner
2. Complete flexibility to send all invoices selective or individual invoices to IRP
2. Generate an offline JSON file in case of an unforeseen circumstances
3. View and track the status of every invoice in case of its cancellation, generation, update IRN, etc.
Tally Prime users can take control of the e-invoicing process through useful alerts that will help to prevent redundancy and make sure that the latest data is shared with the IRP. These alerts will also help protect against accidental modification/deletion/cancellation of e-invoices and will also be a saviour to manage rare situations like internet downtime.
Pratibha Devasenapathy 2021-01-04 23:04:38