There are various ways to make tax compliance seamless, especially with GST and e-invoice integration using e-invoice software. This has been a transformational move by the Central Board of indirect taxes and customs. E-invoicing in India has helped in curbing tax evasions exceptionally and brought ease and efficiency to Goods and Services Tax and GST compliance.
Not just this, but e-invoicing in India has joined the trend of countries all over the world that have adopted standards universally. This has been done to streamline taxation, invoicing, and compliance reporting to the government.
This article will tell you how to make tax compliance seamless with GST and E-invoice integration.
E-invoicing in India
In India, the e-invoicing system is mandatory for taxpayers with an annual aggregate turnover of Rs. 10 crores and above in generating B2B e-invoices.
Once the go-ahead was given for e-invoice under GST in India, ICAI and the GSTN published a draft for consulting with the public.
This feedback was received from industrial associations, business enablers, stakeholders, and technology enablers and was incorporated to define the e-invoice framework. In India, it is done using accounting software.
How tax compliance becomes seamless with GST and E-invoice?
There are various ways tax compliance becomes seamless with E-invoice and GST in the following methods
- The e-way billing system and the e-invoice system are integrated and that too seamlessly. Also, the credentials used for the e-way bill system work even with the e-invoice system and IRP, Invoice Reference Portal, in generating e-way bills.
- E-way bill system is integrated directly with the e-invoicing system. It is totally upon the taxpayer’s choice whether they want to generate the e-way bill at the time of generating the e-invoice or later. Later, IRN is used as a reference.
- When the taxpayers send transportation details with the invoice details to Invoice Reference Portal. Later the Invoice Reference Portal contacts the e-way bill portal, which is done in real-time and generates e-way bills. This saves the taxpayers time and effort required.
Generating E-way bill and E-invoice simultaneously
There are a few mandatory and other options fields that the government schemes have provided for generating the E-way bill through Invoice Reference Portal. The contents of the E-way bill depend on the details sent to the IRP. Suppose both the intricate parts of the e-way bills are provided in the scheme, the details are used to generate another E-way bill simultaneously.
Auto-populate GSTR-1: Another benefit is that GSTR-1 is auto updated with e-invoice details, because GST systems relate to IRP portal.
Seamless GSTR-2A reconciliation: Since the details are shared with GST systems, the buyer can see the invoice details in real-time in GSTR-2A, thereby confirming the ITC.
Conclusion
The points mentioned above show how E-invoice has made tax compliance (using E-way bills) seamless. Also, bulk E-way bill generation using IRN is offered to businesses generating substantial transactions daily.
This facility is a simple solution for generating multiple E-way bills using the Invoice Reference Number as a one-time process.
