B2B invoices are digitally submitted to a system where they are verified by the GSTN (Goods and Services Tax Network) using a procedure known as electronic invoicing, or E-Invoicing in India. The goal of the implementation of e-invoicing is to ensure that all Indian businesses across various industries utilize a standard format, making compatibility easier. An IRN or Invoice Reference Number is generated for each and every e-invoice that is generated.
First, starting on October 1, 2020, companies having a revenue of at least 500 crores rupees were required to use invoices. Second, starting of the first of January 2021, e-invoicing in India was made available to companies having a revenue of at least 100 crores rupees. E-invoicing in India was made available to companies having a revenue of at least rupees 50 crores started on April 1st 2021, as part of the third phase. As of 1 April 2022, it is applicable to companies with a turnover of more than 20 crores.
Benefits of E-Invoicing in India
The corporate sector is different now than it was before the Covid pandemic. E-invoicing in India is proven to be quite useful for all parties involved as more businesses use digital solutions. The following are the benefits of e-invoicing.
- Better Accuracy
E-invoicing has a number of advantages, including improved accuracy and a decrease in human error. There is a limited possibility for error because no human data entry is necessary. The data is directly obtained from the e-invoices, and since the billing systems also keep track of the data, it further assures that there are no errors committed during e-invoicing in India. Better visibility will be possible as a result, which is another advantage come by the great accuracy of e-invoicing in India.
- It Saves Time
Time savings are a huge advantage of e-invoicing for all companies. The procedure of generating an IRN (Invoice Reference Number) for an e-invoice is fully digitally and takes only a few minutes. Traditional invoices used to take a long time to generate and upload the invoice information to the government portal for use in filing returns. Processing, tracking, sending, and approving invoices now take less time thanks to e-Invoicing in India.
- Security of data
One of the key benefits of e-Invoicing in India for businesses is that it guarantees data protection. Before, invoices were not secure, and there was a higher risk of tax leakage and fraud. Some companies engaged in unethical activities by using fake invoices. The possibility of fraud has significantly diminished since e-invoicing in India was introduced because it is impossible to create and submit a fake invoice. Data security and the legitimacy of all electronically generated invoices are verified through their authentication.
- Cost-Effective
Businesses can save money by using e-Invoicing in India instead of the old-fashioned methods of invoicing and reporting. Since everything is done digitally, every business can save more money. This is advantageous from an energy perspective as well because electronic invoicing uses less energy than paper invoices do.
- Efficiency of Financial operation
Another benefit of invoicing is its efficiency. The financial process wasn’t as easy or efficient for businesses before the introduction of e-invoicing in India as it is now. E-invoicing provides relief because it ensures that the administrative job doesn’t take as much time, which is helpful given that these organizations frequently have a heavier workload and manages many company aspects. While electronic invoicing is less difficult, traditional invoicing needed a lot of time and effort.
E-Invoicing with Online IRN
E-invoicing in India is made much simpler with online IRN. Online IRN is an IRN generator tool that easily and quickly generated IRNs for e-invoices. According to your needs, Online IRN has the capacity to generate IRNs for e-invoices in bulk. Utilizing OnlineIRN, you can upload all of your invoices to IRP (Invoice Reference Portals). It will generate a unique Invoice Reference Number (IRN), which the software will digitally authenticate and return to you. Additionally, a QR Code including the specific IRN and all significant invoice parameters will be generated.
