An electronic invoice (e-invoice) is an invoice that is issued, transmitted, received, processed and stored electronically using specific document formats. E-invoices are digital throughout the entire document life cycle, from issuance to archiving.
How does e-invoice work?
'e-Invoicing' or 'electronic invoicing' is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal. All invoice information will be transferred from this portal to both the GST portal and e-way bill portal in real-time.
What is the purpose of e-invoicing?
Electronic invoicing (also called e-invoicing or einvoicing) is a form of electronic billing. E-invoicing methods are used by trading partners, such as customers and their suppliers, to present and monitor transactional documents between one another and ensure the terms of their trading agreements are being met.
Why e-invoice is required?
It will also reduce input tax credit verification issues. Better management and automation of the tax-filing process. Reduction in the number of frauds as the tax authorities will also have access to data in real-time. Elimination of fake GST invoices getting generated.
Is e-invoicing mandatory?
Under Goods and Services Tax (GST) law, e-invoicing for business-to-business (B2B) transactions has been made mandatory for companies with turnover of over Rs.500 crore and Rs.100 crore from October 1, 2020, and January 1, 2021, respectively.
How can a person create an electronic invoice?
How to Create an Electronic Invoice
Download your free electronic invoice template.
Add your business information like its official name, your name and email address.
Include your logo, if you have one.
Add the client's information such as their name and street and email address.
Add an invoice number and invoice date.
Are electronic invoices legal?
The electronic invoice is a legal and fiscal substitute for the paper bill. This technological system is currently being rolled out in countries around the world. A common mistake is thinking that any invoice that is sent and received by electronic means constitutes an electronic invoic
Who is eligible for E-invoice in GST?
Updated on 8th March 2021: As per the recent CGST Notification 05/2021, entities having turnover above Rs. 50 Cr. are required to generate E-Invoice from 1st April 2021. E-invoicing has been the biggest and one of the most talked-about changes when it comes to GST in 2020.
What is GST e-invoice?
GST e-invoice is the introduction of the digital invoice for goods and services provided by the business firm generated at the government GST portal. The businesses can match this number with the invoices which are written in the sales return and paid taxes for verification.