What is an E-invoice?

 

Electronically generated, verified B2B invoices for interchange between suppliers and customers are produced by the GSTN (Goods and Services Tax Network). From the point where the supplier creates the invoice until the buyer processes it, the actual practice of e-invoicing should be electronic.

 

To ensure a decrease in GST avoidance, the idea of GST E-invoice creation was taken into consideration. Businesses with a revenue of more than INR 500 crore are mandated to provide electronic invoices under the GST regime as of October 31, 2020. However, from January 1, 2021, companies with a revenue of more than Rs 100 crore will need to provide electronic invoices.

 

To improve productivity, reduce error handling, and assist organizations in complying with e-invoicing legislation, e-invoicing solutions may help replace human processes with automated business rules and actions.

 

Definition of E-invoice:

E-invoicing, sometimes referred to as electronic invoicing, is a billing method where the buyer receives the bill invoice electronically through the use of preset structured data exchange.

 

There are two major ways to make this trade electronic. The first is a point-to-point link between the buyer and the seller, which is typically the case when utilizing EDI invoicing. The alternative route involves a network of multiple buyers and sellers. The network model is the one that is now most often utilized, and because of how scalable and effective it is for all parties, e-invoicing is expected to increase in prominence.

 

What is not considered an E-invoice?

Not all digital invoices are e-invoices, despite the fact that there are several recognized e-invoice types. The following two invoice types didn't make the cut:

 

●     Unlike PDF invoices, which are frequently sent by email, e-invoices are electronic. PDF invoices cannot be processed automatically since they are not provided in a structured manner.

 

●     Paper or bill invoices are not regarded as electronic invoices since they were not created electronically, even if they have been converted to digital format.

Original Source : What is an E-invoice?


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