From April 1st, 2021 onwards, any businesses with an annual total turnover above 5 Cr will be a part of the E-Invoicing under GST. In the near future, this slab could go down to 1 Cr or lesser. With more taxpayers entering the e-Invoicing system, the businesses shall understand the fundamental requirements and the same they may expect from their ERP. In this article, we will share 7 ERP Changes for 100% Compliance of E-Invoicing, which will fully comply with all the e-invoicing rules as well as the GST laws. Few of the changes mentioned in the article are mandatory while some of them will help upgrade your GST e-Invoicing experience.
Seamless integration of the ERP system and E-Invoicing portal.
Your system should identify the differences between the types of transactions.
Below are the major types of transactions that your ERP solution should identify:
- Business to Business (B2B)
- Business to Government (B2G)
- Supply applicable for
- Reverse Charge
- Supply through e-commerce operators
- Exports
Your ERP system should notify these categories based on the tax category at the time of e-Invoice generation.
Separate B2B & B2C Invoices
As per the above discussion, it is obvious that e-invoicing applies only to the B2B transactions including the B2G transactions as well. ERP should be able to identify B2B invoices from the B2C invoices. This provision would be very useful when there are lots of invoices to be reported to the ERP portal. Classifying these invoices manually is a burdensome task. E-Invoicing solution will help you to process a large volume of invoices along with the proper classification of them. Identify IRN, QR Code in the e-Invoice Generated
IRP allows a uniquely generated IRN (Invoice Reference Number) to every e-Invoice generated on the IRP portal. For the same e-Invoice, an inimitable QR code is implanted with the information matching to that particular e-invoice under GST. Your e-Invoice will be digitally signed and it’s an important part of the validation process. Our ERP software recognizes the unique IRN number and is capable to print it on the hard copy. It should spontaneously detect the QR code on the e-Invoice & should assign it to the printed e-Invoice for further reference.
It should be qualified to detect the digital signature fixed on the e-invoice received from the IRP portal. This digital signature is proof that your e-Invoice is authenticated by the government which will help you in filing the GST returns in the future. If it is not in your ERP, then you have to make suitable arrangements for the same.
Required Fields as per E-Invoice Schema
One of the main & leading tasks of any ERP system is to provide all the required fields as per the plan provided by the IRP portal. This is a significant step towards an effective e-Invoice generation process. When your ERP is well integrated with the scheme notified by the CBIC, it will be a quick procedure added for an e-Invoice generation. Omitted any one of the obligatory fields will fail the e-invoice generation. Later are the ‘Mandatory Fields’ in the e-Invoice Schema.
As we saw 7 ERP Changes for 100% Compliance of E-Invoicing. Sooner or later all the businesses have to get their IT infrastructure ready for the e-Invoicing system. Our ERP Integration can help you create smooth integration between your ERP and the e-Invoice portal, IRP.
LogiTax’s ERP Addition gives you the subsequent benefits:
• One-click e-Invoice generation right from your ERP
• Allows bulk generation of e-Invoices along with bulk cancellation
• Fit in with all the major ERPs
• 100% compliant with the GST Laws
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