Benefits of E-invoicing in a post pandemic world
1. Reduce Tax Leakage and Fraud
Tax leakage and frauds using fake invoices have been an issue that the government is trying to fight even before the GST era. E-invoicing in India is proposed to put an end to this by mandating authorization of every invoice from the government portal. Real time invoice reporting discourages subsequent fraudulent changes/adjustments. E-invoicing will result in a proper mechanism to deal with tax-frauds on a nationwide level leading to lesser tax frauds in the near future.
For individual taxpayers and companies, IRIS Peridot – is a mobile app that can be extremely useful in verifying GST information and filing history of any GSTIN as well as verifying QR code on an e-invoice or an e-way bill.
2. Save Time and Money
E-invoicing has caused a revolution within the billing systems. With invoice going paperless, there’s a minimum requirement of human intervention in checking,tallying, matching etc. Thus, the method of raising and matching invoices has not only become smooth but also has sped up . Use of technology saves time and efforts on each side of the transaction, resulting in faster payments and fewer errors between vendors and buyers. there’s lesser paperwork with increased transparency amongst various parties. This benefits the businesses in terms of saving their time, money and efforts.
3. Benefits of e-invoicing to MSMEs
MSMEs – Medium and little size enterprises that have recently been mandated for e-invoicing will highly enjoy an equivalent . Usually, small or mid size companies are juggling between multiple aspects of business and a correct billing and administrative system may be a dream far-fetched. which results in chaos. With e-invoicing, streamlining administrative work can really become convenient with the assistance of a reliable e-invoicing software like IRIS Onyx. Onyx may be a one-stop e-invoicing solution which will integrate with billing systems seamlessly in multiple ways and generate IRN with zero disruption to the companies .
4. Benefits of e-invoicing to the Taxpayers
Besides plugging the tax leakage, the implementation of the e-invoicing under GST shall be beneficial for the taxpayers also .
Some of the key benefits are:
- One-time reporting of the invoicing details for all of your GST filings
- Seamless generation of E-way Bill with Part A and Part B slip
- The standard invoicing system means interoperability between multiple software
- Real-time tracking of invoices prepared by the supplier
- Minimized invoice mismatches during reconciliation
- Easy and Precise ITC claim
5. E-way Bill and E-invoicing
Generation of E-way Bill is now intertwined with E-Invoicing. IRP can be used to generate not only IRN but also E-way bills, for the documents that qualify. Thus, depending on the data sent, the IRP system returns IRN or E-way Bill Number or both. If the taxpayer sends transportation details along with invoice details, IRP communicates with the E-Way Bill portal in real-time and generates an E-Way bill. Read E-invoicing and E-way Bill: Generating E-way Bill using IRP for more details. This helps in keeping the hassle of preparing the same data twice at bay.
6. GST Data Based Lending
E-invoicing under GST will help secure instant loans without much documentation. It will majorly benefit the MSMEs as banks can rate them on the basis of these e-invoices and other GST Data which will be readily available in public domain.
GST Data based lending gives a more realistic view of business operations and hence better estimate of the business’s credit-worthiness. GST Data based lending can be transformational if used correctly. It is not only just a more efficient way of lending but also a safer one.
IRIS Credixo – Our GST Data Based Lending solution helps lending institutions to move from traditional asset-based lending to data-based lending. The likes of Banks, NBFC’s and Fintechs can simplify their credit assessments with consented GST data.
7. Reduced Human Error and Enhanced Transparency
One of the major advantages of e-invoicing is that it reduces the chances of human errors and mishaps drastically. With E-invoicing, the information will directly be populated in the billing systems and all the data will be maintained safely thus reducing errors. The data will also be registered with the government and certain parts of which will be made available to the public as well so transparency is one major benefit here. Companies will not have to do back and forth with their suppliers and vendors as correcting and re-sending invoices via emails will be stopped resulting in smoother flow.