Benefits of E-invoice System
enefiBenefits of E-invoice Systemts of E-invoice System
The major
benefits of e-invoice system are as follows:
1. Standardization:
One time
reporting on B2B, SEZ and export invoice data in the form it is generated to
reduce reporting in multiple formats.
2. Seamless Reconciliation:
Reconciliation
and data verification between suppliers and recipient will be seamless and thus
provide better control over input tax credit computation and claim.
3. Lesser Compliance:
Reduction
in overall compliance burden. Substantial reduction in input credit
verification issues as same data will get reported to tax department as well to
buyer in his inward supply (purchase) register.
4. Automation:
Auto-generation of Sales and Purchase
Registers (ANX-1 and ANX-2).To generate Sales and purchase register (ANX-1 and
ANX-2) from this data to keep the Return (RET-1 etc.) ready for filing under
New Return.
5. Elimination of fake invoices:
Reduction of tax evasion, System level
matching of input credit and output tax.
6. Information Availability:
Near
real-time availability of information to all the relevant participants in the
supply chain.
On receipt of info thru GST System as buyer
can do reconciliation with his Purchase Order and accept/reject in time under
New Return
7. Environment friendly:
The need
of the paper form of the multiple copies of way bill is eliminated. Hence, the
tons of paper are saved per day. Officials saved of monotonous work collecting
and matching the manual work with the returns of the taxpayers.
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