In India, an e-invoice is an electronic invoice that is generated and transmitted using the Indian government’s e-invoicing system. The system, which was launched in 2020, is mandatory for businesses that have a turnover of more than Rs. 500 crores.
The e-invoicing system is part of the Indian government’s effort to digitize and streamline the tax compliance process for businesses. Under the system, businesses must generate invoices electronically and transmit them to the government’s e-invoicing portal. The portal then validates the invoice and issues a unique invoice reference number (IRN) and QR code, which must be included on the invoice.
The e-invoicing process in India includes the following steps:
Businesses generate an invoice in a specific format using Miracle Accounting Software
The invoice is then transmitted to the GST portal, where it is validated and assigned a unique identification number (IRN)
The invoice is then sent to the recipient, who is able to view and download the invoice from the GST portal
The invoice is also sent to the tax authorities for compliance and record-keeping purposes.
The e-invoicing system in India is intended to make the invoice process more efficient and transparent, and to reduce the potential for fraud or errors. By requiring businesses to transmit invoices electronically, the government can more easily track and monitor transactions, ensuring that businesses are paying the correct taxes.
Note that e-invoice is a part of the e-way bill system which is mandatory for the transportation of goods valued over INR 50000.
