What is E-Invoicing and Why it is Important for India?

The change in the country’s tax system has proven to be a boon to the ever-growing economy. Being the largest democracy in the world, the reform in the tax system has not only strengthened the Indian economy but also made the tax system more transparent than ever.

Following the introduction of the game-changing Goods and Services Tax (GST) Act, B2B (business to business) and business to government e-billing has now also been implemented. In the world’s largest economy like India, electronic bills are introduced into B2B transactions initially to reduce tax evasion in the country.

After the footprints of India, European countries are planning to implement the same in their business. Implementation of an electronic invoicing system will help them digitize their economy and open new doors to their business potential in terms of revenue generation and more job creation.

Electronic invoicing or electronic invoicing refers to the method of processing and creating invoices in electronic form with the help of a common platform between buyers and suppliers. With the implementation of the Goods and Services Tax (GST) electronic billing system, GSTN will electronically verify all B2B invoices according to certain restrictions. All businesses across the country can create electronic invoices with the help of available Plug and run the ERP software Which contains the electronic billing module.

The importance of electronic invoicing for business

It can help your business grow as well as maintain transparency in every financial transaction. The importance of electronic bills is mentioned below:-

(1) It saves time

Prior to the introduction of the electronic invoicing system, financial records were not so organized. Often times, it was manually or through the use of multiple programs. As the logs are scattered, the potential for errors increases. To eliminate the chances of errors and save time, electronic invoicing is implemented to reduce the steps traditionally followed. As a result, it helps save a great deal of time for both suppliers and buyers. It also automates the GSTR 1 gaskets thus saving a significant amount of time.

(2) It helps in cost control

As the country moves towards a digital economy, it is placing more emphasis on paperless work. Since electronic invoices are created and approved by the government to be an original invoice, they can be shared electronically online with buyers and sellers with confidence.

(3) Reduce the chances of error

With manual creation of invoices, there are higher chances of errors. As a result, it can create a lot of inconsistencies in business transactions. To avoid these types of problems, it is best to look for electronic billing software. With the help of the program, it will be easy for buyers and sellers to maintain the highest level of transparency during the entire business processes.

(4) improve customer satisfaction

Customer satisfaction is very important to any business. The e-billing app helps to save 90% of processing costs. Since it does not depend on paperwork, the customer can get the full advantage of early payment plus he can get the best deals on every purchase.

(5) Reduce the chances of fraud

With real-time electronic invoice tracking, the chances of fraud are minimal or zero. The electronic billing app has given a strong hand to the tax authorities to crack down on fraudsters.

Takeaway final

For a developing country like India where tax evasion is a common problem, an electronic billing app will solve the problem to a great extent. Apart from this, it will also help in maintaining transparency in the long run for all the organisations. In the coming time, it will boost the Indian economy and take the country on the path of progress and prosperity.

Electronic billing system launched by TYASuite

as a young person Cloud ERP Service Provider TYASuite has taken a step forward to launch electronic billing solutions to its valued customers to help them mitigate complications. It is one of the leading cloud ERP service providers that help organizations simplify their businesses.

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