Path breaking e-invoice initiative which is poised to revolutionalize the way business interact with each other. The e-invoice system, the game changer in the GST System, was launched on 1st oct,2020 for the business with aggregate turnover of more than Rs.500 crore in the financial year.
Currently, there are three modes of generation of IRN in NIC system. First is the direct API interface of ERP system of the tax payer with NIC system. Second is the API interface of ERP system of the tax payer through GSP with NIC system. Third is using the offline tool for bulk uploading of invoice and generating IRNs. Around 15% of the tax payers are using the offline tool for the IRN generations and 85% are integrating through API.
Benefits of E-Invoice System.
Presently,the generation of IRN using API interface is allowed for business with aggregate turnover more than Rs.500 crores,GSPs and shortlisted ERPs.Now, direct access will be extended to the tax payers using E-way Bill API interface. Generally, the big business will eanble their suppliers and clients to use their ERP/SAP system for generation of invoice.Therfore it has been decided to facilitate them to enamble their suppliers and clients to use their integration channel.
E-invoicing under GST will help secure instant loans without much documentation. It will majority benefit the MSMEs as banks can rate them on the basis of these e-invoices and other GST Data which will be readily available in public domain.
GST Data based lending gives a more realistic view of business operations and hence better estimate of the business's credit-worthiness.GST Data based lending can transformed if used correctly.It is not only just a more efficient way of lending but also a safer one.