In the third phase of e-invoicing rollout, the government has made e-invoicing mandatory for entities whose turnover is above 50 Cr from 1st April 2021. E-invoicing would be applicable for business to business transactions. E-invoicing was rolled out for entities with 500 crore and more turnover from October 1 last year and later extended to entities with 100 crore and above from January 1 this year. The government had earlier planned to extend e-invoicing to all entities from April 1, 2021, but has refrained, taking care of interest of small entities. Notification no. 05/2021-Central Tax dated 08.03.2021 brought it into effect.
E-invoicing is aimed at bringing in more transparency in sales reporting, minimizing errors and mismatches, automating data entry work, and improving compliance. It will help prevent tax evasion once it is made mandatory for small and medium firms in phases.
E-Invoice is a compliance requirement that stands in the critical path of making a sale and earning revenue. Keeping this in mind, GSTZen offers different solutions to meet the varied needs of businesses. The key functionality of GSTZen software is to read a tax payer’s invoice details, validate all details, create invoice data as per the schema prescribed by the government, and register the invoice with the government and receive an acknowledgement, and finally provide details of the acknowledgement to the taxpayer.
GSTZen’s solutions support multiple Data Sources through different Data Access methods. The following diagram depicts options provided by GSTZen.