2. E-invoicing is an electronic authentication
mechanism that is implemented under the
Goods and Services Tax (GST) system.
It involves registering all B2B invoices and export
invoices generated by a business with an Invoice
Registration Portal (IRP) like IRIS IRP and obtaining
a unique identification number for each invoice,
known as the Invoice Reference Number (IRN).
4. • Easy Reconciliation of Accounts
One of the biggest challenges faced by businesses under GST is
matching their purchase data with the supplier’s returns reflected in
GSTR 2A and GSTR 2B. With e-invoicing, businesses can
overcome this challenge as the auto-population of data makes GST
reconciliation easier and more accurate. The IRN, QR code, and
JSON Response make the invoice data interoperable, reducing the
risk of data entry errors and making the reconciliation process
smoother.
5. • Improved Financial Flexibility
With e-invoicing, businesses have access to credit opportunities as
many lenders have started building their credit models around GST
data. This provides businesses with easier access to financing
options like bill discounting or financing, improving their financial
flexibility and stability
6. • Real-Time Tracking
E-invoicing provides businesses with real-time visibility into their
invoices, allowing them to stay on top of their finances and quickly
address any issues that may arise. This helps businesses to be
proactive and make informed decisions, leading to better financial
management.
7. • Enhanced Cash Flow and Cost Saving
With e-invoicing, businesses can receive payments faster as the process is
streamlined and automated. This can significantly improve cash flow, freeing
up resources for other investments and operations. E-invoicing eliminates the
need for physical invoicing, reducing paper and printing costs, as well as
reducing the need for manual labor and data entry. Additionally, it saves time
and money spent on manual reconciliation processes, resulting in significant
cost savings for businesses.