Lighthouse ERP offers enables business to meet statutory compliances like E-Invoicing and TCS. These Solutions are easy to deploy and use in areas of finance and accounting, procurement, supply chain, sales & distribution.
Lighthouse believes in keeping the things simple and understanding with clarity for the clients. Our clients benefit from our solutions, deep ERP expertise, and flexible business models. This leads to benefits such as business agility, easy and faster access to intelligent technologies, lower operational costs, and greater process efficiencies.
Lighthouse helps customers easily transition to e-invoicing to scale their business and meet regulatory compliance requirements. It will help achieve digital automation with paperless business transactions.
The Government of India introduced e-invoicing to accomplish the automatic generation of invoicing through government web portal as they were unable to monitor the movement of goods without access to live data across Indian states and cities.
The E-invoicing process needs sellers to upload invoice details on the GSTN tax portal. This will in turn generate an Invoice Reference Number (IRN), a unique identification number which will be used to track the movement of goods.
Tax Collected at Source or TCS makes the seller of goods liable to collect taxes at the rate of 0.1 per cent if the sale invoice transaction value is higher than Rs 50 lakh or if the buyers turnover exceeds 10 Crores in the previous financial year.
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The key benefit of E-invoice under GST is to eliminate the unnecessary steps like manual entries of data, accuracy checks, and elimination of swapping software. To dig more into the benefits of E-invoicing, let us further read down.
As mentioned earlier, E-invoicing cuts down many manual steps involved in the process. These steps slow down the entire process, hence with the emergence of E-invoicing, the unnecessary steps are eliminated. It will be a onetime reporting of e-invoices on the GST portal.
Customers get their E-invoice on their desired platforms, which- enables them to take advantage of early payment discounts. Also, E-invoice saves up to 90% of processing costs and time as compared to the paper invoice.
When compared with paper invoices, E-invoicing stands out by reducing both cost and mistakes which often occur in paper invoices. With the increase in automation, mistakes and typos can be avoided. The stacks and piles of paper invoices are also reduced, cutting the cost.
E-invoicing also shines when it comes to keeping track as it is easier to send, view, and pay electronically than to perform the tedious job of managing invoices manually. It is also easier to keep track of dates and time when the E-invoice is sent and received by the customer profiting the business.
When an invoice is sent electronically, one can always access it and view it anywhere and anytime on one platform on any device. This gives complete control over the process invoicing process to a degree of certainty.
With the implementation of E-invoicing, the fake entries which used to occur in manual processes will be reduced drastically. Also matching double entries and reconciliation error will also be reduced as the records will be in complete sync ensuring the integrity of records.
All the public sector entities in European countries have implemented the E-invoicing process from their suppliers from April 2019. Mexico and Brazil are some of the other states that have legislation which requires that sales transactions are to be documented in an E-invoice format.
All these benefits of E-invoicing under GST have pretty much summed up the necessity to implement E-invoicing in India.
These benefits and impacts of the implementation of E-invoicing will surely make the invoicing process easier and enable the businesses to crush out more profit. This process will also make managing the invoices easier, keeping the record in order and errorless.