The past few years have brought about tremendous changes in the Indian tax system. With the introduction of the GST Act, few statutory elements were added to it – starting with the E-way bill and the latest addition being the E-invoicing. Currently, E-invoicing is mandatory for all B2B businesses with a turnover that exceeds Rs. 100 crores in the previous financial year. However, according to the latest news, starting from 1st April 2021, all B2B businesses may have to implement e-invoicing in their billing and ERP software.
E-invoicing is a standard invoice format that eventually has to be followed by all businesses. To make the task of generating e-invoices easy, you can integrate IRP (Invoice Registration Portal) with your existing ERP or billing software. In TallyPrime, this integration process is quite simple and you can generate an e-invoice in any format you want.
A. What is Electronic Invoicing (e-Invoicing)?
E-Invoicing is used for authentication or registration. In the e-invoicing process, businesses need to upload all their B2B transactions on the Invoice Registration Portal (IRP). Following this and upon authentication, the IRP will provide a unique Invoice Reference Number (IRN) for all invoices, which need to be converted into a QR code and printed on the invoice for validation. Additionally, for all applicable transactions, businesses would also need to generate e-way bill numbers along with the e-invoices.
B. e-Invoice Solution in TallyPrime
With the latest TallyPrime software, businesses can experience a seamless transition to the e-invoicing system as it offers easy integration with the IRP portal. Tally is a well-known GST Suvidha Provider (GSP) and as such, makes it simple to send your invoices directly to the IRP via the use of the GSP route.
Upon authentication by the IRP, TallyPrime will receive the IRN and directly convert it into a QR code, thus saving you considerable time. You can then print the QR code on your invoice. Here, TallyPrime will also help you to generate e-way bill number for applicable transactions.
E-Invoicing integration with TallyPrime offers the flexibility to send all selected invoices to IRP. Using the GSP, you can generate both – the E-invoice and E-way bill. You can also track the status of each invoice – be it generation, cancellation, update IRN, among others. What’s more, it also allows you to generate an offline JSON file.
C. Benefits of E-Invoicing Integration With TallyPrime
- Verified Invoices: The primary benefit of the e-invoicing system is verification. The IRP portal will verify the invoices generated and issue the IRN number which will be directly sent to TallyPrime. TallyPrime will then convert it into a QR code along with all other invoice information and help you print it on your invoice. This makes return-filling easy, as it saves you the trouble of cross-verification.
- Easier E-Way Bill Generation: By integrating e-invoices with TallyPrime, you can also generate bulk E-way bills on applicable transactions as well as file returns easily, thereby saving significant time on statutory compliance.
- Easier Return Filing: Integration of e-invoicing with TallyPrime will also make return-filling easy, as on the invoice registration portal (IRP), E-way bill and GST portal are integrated. This ensures that upon verification, both these portals receive a copy of the verified e-invoice, which makes bulk return filing simple.
- Corrections and Alteration: With the e-invoice integration, you also get the option of modifying, cancelling and deleting an e-invoice, which was not possible earlier. This feature of correction and alteration before the final return filing helps you to steer clear from penalties.
- Accurate Claims For ITC: In this process, the Input Tax Credit (ITC) calculation is automated, which minimises the risk of over-claiming or under-claiming and ensures that you can make accurate claims at all times.
D. How to Create e-Invoices From TallyPrime?
The e-invoices feature is available with TallyPrime version 1.1. You need to update your Tally.ERP to the latest version as well as renew your TSS to get the new e-invoicing feature.
- Step 1: Log into your invoice registration portal (IRP) » choose API integration with ERP » set your GSP to ‘Tally.’ Next, set username and password and make a note of it.
- Step 2: In Tally, go to the configuration in the Sales Voucher » enable ‘e-invoicing and e-way bill’ in the ‘GST details’ section.
- Step 3: Create a Sales Voucher. Fill in the required details » click on ‘yes’ to get the e-way bill » click on ‘save.’
- Step 4: Once you save the entry, a pop-up will show with the message ‘Do you want to generate an e-invoice?’, press ‘yes.’
Next, make use of the username and password created in step 1 to login. You’ll get the invoice with the IRN and QR code. To take a printout, click on ‘print.’
#Important Things to Note Before Starting E-Invoicing in TallyPrime
1. On the Invoice Registration Portal
- Register yourself on the e-invoice portal and create an API user to directly exchange invoices from TallyPrime to the e-invoice portal.
- When creating an API user, select Tally (India) Pvt. Ltd as your preferred GSP.
- Make a note of the newly created API user credentials and use them on TallyPrime when prompted to provide e-invoice user credentials.
2. Within Tally
Ensure the TallyPrime Release 1.1 is unblocked or put in the exception list of your firewall and anti-virus software.
i) Verify Your Masters
- The ledger and item masters should carry the right HSN/SAC.
- The rates should be right for HSN/SAC
- Check if the Masters are configured for the right ‘Type of Supply’ i.e classification of the master as ‘Goods’ or ‘Service’
ii) Verify Your Party Masters
- Make sure that the party master as the right address and pincode
- Ensure the GSTIN entered for the registered (regular/composite) party is correct
Note, Invoice number starting with ‘0’ is rejected by the NIC portal, so avoid starting the invoice with ‘0’.
- In the transaction section, enter all mandatory information for e-invoices (Bill-To and Ship-To as applicable). Also, if you need to generate an e-way bill along with e-invoices, then make sure to enter all the required information as applicable (vehicle number, document number, distance etc)
To safeguard data, you can also create users with ownership rights. This way only specific users will be allowed to upload invoices directly into the e-invoice portal.