6 Tasks to Complete Before You Start Your E-Invoicing Journey

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According to GST Notification No.?10/2023, companies with an annual revenue of more than 5 crore during any fiscal year have to finish their formalities for electronic invoicing starting on 1. August, 2023.?Using a business management system that is effective such as TallyPrime will assist businesses in navigating this transition without difficulty.

There are a number of essential aspects businesses should be aware of prior to implementing e-invoicing for example, the specifics of e-invoices and deadlines and any extended deadlines that have been announced.?In this article, we will try to clarify the various aspects of e-invoicing and to clear up any confusions surrounding this topic.

We will present to you the 6 essential steps you must complete prior to setting the software as well as infrastructure for preparing and submitting electronic invoices.

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Which companies can file electronic invoices?

This is the most crucial aspect you need to know as an owner of a company. you can file and sending e-invoices when your Annual Aggregate Turnover (AATO) is greater than Rs.5 crore in any of the financial years beginning in 2017-18.?Here are some key facts you need to be aware of about the AATO:

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The eligibility for annual aggregate turnover was set at Rs.?10 crore. However the threshold has been increased at 5 crore.?5 crore by the 1st August 2023.

Only the actual supply of your business will be taken into consideration when calculating your turnover.?Tax payments are excluded when calculating the AATO of your company.

Have you inspected the status of your electronic invoices?

You've checked and confirmed that the turnover of your business is in line with the criteria for eligibility of the GST obligation.?What's next??To ensure an efficient e-invoicing process be sure to check the status of those electronic invoices before you start.?A few things you should keep in mind are:

To verify this, visit this site: Invoice Registration Portal, and determine whether you have a GSTIN (Goods & Service Tax Identification Number) is activated or not.?You can refer https://einvoice1.gst.gov.in

If the invoice feature isn't enabled You must enable it prior to launching your e-invoicing file.?We'll give you more specific instructions for this in the next step.

There's a vital aspect to be aware of - there is no requirement to create an e-invoicing account just because your GSTIN has cleared the status of enablement.?If, for any reason, your company is not exempt from electronic invoices, and you have informed the appropriate authorities of this it is possible to ignore this issue even if your GSTIN is able to be used.

What do you do when GSTIN isn't enabled?

If you fall under the e-invoicing mandate with respect to your AATO and your GSTIN is not yet enabled, you have to first enable it before you can start any e-invoicing formality, you can visit https://einvoice1.gst.gov.in ?for the same.

Electronic invoices that are able to be issued in the context of GST simplifies the process and precise.?Companies can keep track of their invoices and stay clear of errors or discrepancies in the procedure.

You can go to the link mentioned at the end of step 2 in order to determine the status of enabling the status of your GST ID Number.?If it's not working you can use the link provided in this section to enable it manually.

What do you do when you're GSTIN is activated, however, your AATO does not qualify for electronic invoices?

The next step is to will address the opposite situation from that we have discussed previously.?Let's say your AAG was not more than the amount of Rs5 crores during any financial year prior to 2017-18, however your GSTIN still has been activated as you verified its status during the 2nd step.?Here's how to do it:

Raise a ticket and inform the relevant authorities of this concern and ask for your GSTIN be blocked for electronic invoicing.

Resolve the Problem: Click the link provided to submit the issue and get the status disabled as soon as you can.

Do you have the option of leaving your GSTIN on the website even when you aren't subject to the requirement to e-invoice your turnover??The answer is simple.?While the fact that you are GST enabled might not have a major effect on the business you run, it can cause confusion to your clients.

Customers can now check on any business's NIC (National Informatics Center) website.?If they find that your AATO isn't covered by the e-invoicing requirement, but your GSTIN is enabled and they want to know, they can request the form of declaration from you.

Therefore, in order to avoid confusion and additional procedures, it's best to open an inquiry and have your GSTIN disqualified immediately you notice that it is disabled in the portal.

Logging in to the portal for live invoices

Your AATO is subject to the e-invoicing requirement and your GSTIN is now registered through the portal.?What's next??Before moving on into the second step establishing your internal e-invoicing software with TallyPrime You must first sign up with an online invoice register portal (IRP) from the Federal Government.

Visit this link ?https://einvoice6.gst.gov.in/login ?to register yourself and your GSTIN on this live portal.?This is a crucial step since you will be able to start creating electronic invoices once you sign up in this IRP In this way, you'll be able to manage multiple GSTINs and produce a multitude of electronic invoices, which will save you time and effort.

GSP Registration

After you've activated your GSTIN and registered it on the portal for invoices, the next step is to sign up the third-party application vendor you use for electronic invoices.

Your third-party application might be one of the following: GSP (GST Suvidha Provider) or an the ASP (Applications Service Provider) or another ERP (Enterprise Resources Planning) provider, such as Tally Solutions.

Whatever option you choose however, you should choose it from your IRIS IRP portal and authorize API access according to.

Conclusion:

Electronic invoices have drastically simplified the way businesses generate and manage their invoices with precision and effectiveness.?But, for this method to succeed the businesses that fall within the requirements of e-invoicing regarding their turnover must finish these six steps without failing.

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