e-Invoicing under GST May Soon Become a Reality
Indian economy drastically changed after the introduction of GST, this, in turn, brought reform in Indian indirect system. The GST council is planning to introduce electronic invoicing under goods and services tax so as to bring more transformation under GST and to modernize the business conducts.
If India adopts the e-invoicing system, then all the business has to generate each and every invoice, bills directly through Goods and services tax network. This will help the businesses as they do not have to enter their invoices at the time of filing their GST Returns as well as the GST Network in getting the data directly hassle-free.
The e-invoicing will be effective as it will help the GST authorities to tackle the tax evasion as there have been incidents of tax evasions since the implementation of the GST.
Howsoever, it must be noted that most of the tax evasion incident takes place in the case of B2C invoices and predominantly this happens in case of services.
To implement e-invoicing in India the Goods and service tax council has set up a panel so as to validate its feasibility. The panel of this committee consists the chief of GST Prakash Kumar along with the Central and state government members and special secretary Mr Rajeev Ranjan as the convenor. This team of experts will study the e-invoicing system of different countries such as South Korea and Latin America before its implementation in India.
How e-Invoicing Will be a Wise Choice for India?
The e-invoicing is a step towards a better future of India as it may help the Indian economy to grow. The electronic invoicing will be a wise choice for India in the following ways:
Promoting Digital India and Paperless Invoicing
One of the most common impacts will be that the e-invoicing will help to promote Digital India and paperless invoicing. Along with this, it will also reduce the paper consumption cost of the businesses. And in the nearer future, it will reduce the paper wastage to almost 60% to 70% approximately including carbon papers.
Proper Invoice Management
Electronic invoicing or e-invoicing will help the businesses to maintain proper records of invoices as they will be able to view and download the invoices directly through the GST Networks.
As the invoices will be directly generated by the GST networks under e-invoicing module, it will help the businesses to manage their cash flows and to make timely payments. In addition to this, with efficient technology implementation and digitization, the business would be able to make the most out of data in real-time.
Reduces the Tax Evasion
If e-invoicing gets implemented in India there will be less indirect tax-evasion as under e-invoicing system the businesses will have to generate the invoices directly through GST Network. This will helps the GST authorities to control the tax evasion or may lead to the eradication of it as well in the nearer future.
E-Way Bill Generation
The e-invoicing may also empower the businesses to generate e-way bill directly as the businesses will have to generate the bills or invoices directly. So, considering this fact the e-way bill generation procedure may also get simplified with the introduction of e-invoicing.
Increases Invoices Transparency
The e-invoicing will also help in increasing the invoices transparency as the supplier and recipient both will be able to view the invoices anytime and anywhere. This will be possible as the e-invoices will be there in the database of the GST networks.
Some other benefits or e-invoicing will be:
- Increased invoice accuracy
- Reduced efforts for chasing behind the delayed payments
- Faster invoice-processing
The Bottom Line
Through all the above statements we can clearly conclude that once the e-invoicing gets properly implemented in India it will not only be fruitful for the Indian economy but also for the existing businesses. In addition to this, it will have a lesser impact on the environment as there will be less use of paper.