We have discussed in the previous article about the Digital Revolution of e-Invoicing system. In this article, we have further analyzed the e-Invoicing system and listed down the main issues and concerns surrounding the e-Invoicing system and how Webtel could be a great help to overcome these issues.
As we already know that the new e-Invoicing system has come into effect from 1st October 2020. Any new system or change comes with some issues and concerns in it. Thus, keeping this in mind, our experts at Webtel, have listed down a few critical challenges that you may face while integrating an e-Invoicing system.
#1 Integration into ERP System
For implementing the e-Invoicing system, every taxpayer (who falls under the prescribed category) needs to integrate his ERP systems to generate e-Invoices. The ERP system should allow him to quickly and easily change the format of e-invoices to comply with the recently launched schema.
#2 Separating B2B and B2C invoices
e-Invoicing system is applicable to all B2B transactions only and not B2C transactions. For e.g., if you want to generate an e-way bill for B2B transactions then you need to filter out only B2B invoices from the pile of invoices. This separation process of B2B and B2C invoices will take a considerable amount of time and effort if facility for same has not been given by ERP.
#3 Cancellation and Amendment of e-Invoice
Partial cancellation of e-invoice is not allowed as per the new e-Invoicing system, you need to fully cancel it even for a small change. Please note, that the e-invoice on the IRP can be canceled within 24 hours only. But yes, if it is required, then you can make edits or amendments anytime in the invoice details on the GST portal with proper clarifications of such editing requirements
#4 Reconciliation of e-invoice data
Sometimes we have to make changes in GSTR-1 even after uploading the invoice to the IRP. In such a case, a separate reconciliation of invoices needs to be carried out with the help of any tool or utility.
#5 Different workflow to process different documents
Since the e-Invoicing system applies only to B2B transactions, you need to perform a different workflow to process B2C invoices, bills of supply, delivery challans, and other similar types of transactions. Creating an altogether separate workflow for different types of invoices will take time and effort.
#6 Storage of Data & Report Generation
Since the data stored on the IRP is available for 24 hours only, you need to ensure that the necessary data is downloaded well in time.
#7 Generating Report
Reports can be generated on a daily basis only. But the system allows the user to change the date and generate the report of a particular date.
#8 Other Critical Challenges
Apart from the abovementioned challenges, there are few questions come in taxpayer’s mind such as:
Will the auto-populated data in the e-way bill be revoked when an e-invoice is cancelled due to incorrect details?
Do we need to obtain an e-invoice from the purchase or not?
… And many more like this.
e-Invoicing is an altogether a new concept under the GST Regime. The aforementioned challenges have been listed on the basis of experiences faced by professionals and companies. But the real challenge will be different on the basis of human-by-human and will get unfolded only when everyone will work on it on a real-time basis.
If you are experiencing any other challenges or have any other concerns in this e-Invoicing system, then feel free to tell us by commenting below.
However, by choosing Webtel integrated e-Invoicing software, you will be assured that your transition from a traditional invoicing system to an e-Invoicing system will be seamless and hassle-free.
Good luck!