How to Generate e Invoice: A Simple Guide
If you have searched the question - ‘how to generate e invoice’ anytime recently you are not alone!
Many taxpayers have been inquiring about the process of filing an e Invoice, a commonly asked question. E invoice, which is a business-to-business (B2B), business-to-government (B2G), or export invoice, is reported by specific GST-registered enterprises through the e-invoice portal (GSTN). This reporting must conform to the standard format specified by the CBIC. This article will guide you through the steps involved in generating an Invoice Reference Number (IRN) for an E-Invoice and provide insights into its workflow.
E Invoicing in India became operational for B2B transactions on October 1, 2020. Subsequently, it was extended to all taxpayers as the government progressively lowered the e-invoicing threshold. This initiative, introduced under GST, aims to combat tax evasion and establish a standardized invoicing system in India. With the implementation of e invoice generation, the GST system can electronically validate all B2B transactions and automatically populate them in taxpayers' GST return forms, ensuring accuracy. According to the GST council's recommendations, the e invoicing system encompasses two key aspects:
- Adoption of a standardized invoice format, promoting consistency and efficient data exchange.
- Registration of these standardized invoices with the government through the Invoice Registration Portal (IRP) to verify their authenticity.
The invoice details need to be verified with the government records and get the unique registration number. Additionally, the supplier/vendor is required to submit these E-invoice on the GSTN portal for the validation purpose, following which, it can be used for return filing and EWB generation. Decoding the entire process of E invoice generation, right from the invoice creation to sharing the same with buyers (for reconciliation).
Here is a step-by-step guide for generating a Valid E-invoice:
1. Invoice Creation:
Start by creating your invoice using accounting or billing software, adhering to the prescribed E invoicing format.
Notably, it's not mandatory to use the government's tax portal for e invoice generation. You have the flexibility to continue using your preferred accounting software as long as it can generate invoices in the required E invoicing format.
InstaInvoice feature allows users to create e invoice in just a few seconds, significantly speeding up the invoicing process.
2. Swift Invoice Registration Number (IRN) Generation:
You have the option to generate a unique Invoice Reference Number (IRN) using a standard hash-generation algorithm. Alternatively, if you choose not to generate one, the government's IRP system will do it for you.
3. Hassle-Free Upload on the Invoice Registration Portal (IRP):
Upload each B2B invoice, whether generated through accounting software or third-party tools, in the form of a JSON file on the Invoice Registration Portal (IRP). If you've generated an IRN, make sure to include it in the upload.
4. IRP Validation of Invoice Information:
The IRP takes charge of validating the details within the JSON file. If you didn't generate an IRN, it generates one for you.
5. Effortless Digital Signature and QR Code Generation:
Following successful validation, the IRP digitally signs the invoice data and generates a QR code within the JSON file.
6. Seamless E-Invoice Data Transmission:
The validated data is seamlessly shared with both the E-way bill and GST systems. This data is then used to auto-populate various GST Annexures and other related documents.
7. E-Invoice Receipt back to Supplier’s ERP:
The portal will send the digitally signed JSON along with IRN and QR code back to the seller. The invoice will also be sent to the buyer on their registered email id.
While the E invoicing system is being introduced to curb tax evasion and simplify GST compliance for a taxpayer, it should be noted that selecting the right invoicing solution can play a crucial role in your compliance journey.
Bizongo InstaInvoice is a one-stop platform for you to view, share and collaborate with your customers and suppliers alike, while managing the entire communication with the GST systems in a hassle-free manner.
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Perks of Using Bizongo InstaInvoice
Bizongo is a powerful tool that offers a plethora of advantages that can transform the way you manage your e invoice and streamline your financial processes.
1. Lightning-Fast Invoicing: Say goodbye to hours spent crafting e invoice. With Bizongo InstaInvoice, you can generate invoices in a matter of seconds. Time is money, and this tool helps you save both.
2. Error Elimination: Human errors in invoicing can be costly and time-consuming to rectify. Bizongo InstaInvoice minimizes the chances of errors, ensuring that your invoices are accurate and compliant.
3. Maximum GST Compliance: Staying compliant with GST regulations is a must for any business. InstaInvoice takes the guesswork out of GST compliance, ensuring that your invoices adhere to the latest requirements.
4. Simplified Data Entry: No more wrestling with complicated forms on government portals. InstaInvoice simplifies the entire process, making data entry a breeze.
5. Invoice Reference Numbers (IRN) in Seconds: Generating IRNs and QR codes is a snap with InstaInvoice. This means you can expedite your payment processing and ensure a smooth financial workflow.
6. Centralized Dashboard: Keep all your e invoice, payment deadlines, and outstanding balances neatly organized in one central dashboard. Stay in control of your finances without the hassle of jumping between different platforms.
7. Automated Management: Worried about last-minute changes or cancellations? InstaInvoice automates the creation and submission of e-invoice, reducing the need for manual debit and credit notes.
8. Government Portal Integration: Seamlessly integrate with government tax portals. InstaInvoice ensures that your e invoice are submitted and recorded with tax authorities effortlessly.
9. Enhanced Communication: Effective communication with both customers and suppliers is essential for a successful business. InstaInvoice facilitates efficient communication, making collaboration smoother than ever.
10. Real-time Updates: Stay informed with real-time updates on your e invoice, payment statuses, and compliance changes. InstaInvoice keeps you ahead of the curve.
Bizongo InstaInvoice is more than just an e invoicing tool; it's your key to unlocking unparalleled efficiency and precision in your financial operations.
Join the ranks of savvy businesses that are transforming their invoicing processes with this game-changing solution.
