Electronic Invoicing is a new Jargon in India. Indian Government has made it mandatory for companies with more than 100 Crores to do electronic invoicing from April 1st, 2020.
Business are supposed to generate E- invoices before shipment of the products. The Invoices will be electronically authenticated by the government. This method of invoicing is already in practice in Latam countries like Chile, Brazil, Argentina etc.
E-way bill might become redundant as both the Electronic Invoicing and the E-way bill will serve the same purpose. Electronic invoicing will be much effective than E-way bill as the GSTR 2A reconciliation process will be easier. The Vendors needs not wait for the buyers to upload their returns and based on the E-invoicing Process the reconciliation can take place.
Eventually, Electronic Invoicing will be become mandatory for all the companies over a period of time. One of the advantages with the Electronic invoicing is that the same document can also be electronically used by the buyer to do the accounting in their books by making few tweaks.
So, it’s time for all the companies to prepare for the Electronic Invoicing to avoid the last-minute preparations like we did for GST.
Please also find the link to the India government documentation on the Electronic Invoicing.
