{"id":20439,"date":"2020-11-27T14:38:45","date_gmt":"2020-11-27T09:08:45","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=20439"},"modified":"2020-11-27T14:42:19","modified_gmt":"2020-11-27T09:12:19","slug":"msmes-to-incorporate-new-it-system-that-support-e-invoicing","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/msmes-to-incorporate-new-it-system-that-support-e-invoicing\/","title":{"rendered":"MSMEs to Incorporate New IT system that Support e-invoicing"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In continuation of extending e-invoicing across the nation, the Government of India has decided to make it mandatory for MSMEs whose annual turnover is more than 100 cr. Taxpayers would get around 50 days to incorporate a new IT system for the implementation of e-invoicing. Previously, the firm earning more than Rs 500 crore comes under the ambit of this requirement.\u00a0<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/msmes-to-incorporate-new-it-system-that-support-e-invoicing\/#Impact_of_Announcement_Implementing_IT_Infrastructure_in_50_days\" >Impact of Announcement\nImplementing IT Infrastructure in 50 days<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/msmes-to-incorporate-new-it-system-that-support-e-invoicing\/#How_E-invoicing_would_Benefits_Tax_Authority\" >How E-invoicing would Benefits\nTax Authority?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/msmes-to-incorporate-new-it-system-that-support-e-invoicing\/#Tips_for_Easy_Implementation_of_the_E-Voicing_within_the_Organization\" >Tips for Easy\nImplementation of the E-Voicing within the Organization&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/msmes-to-incorporate-new-it-system-that-support-e-invoicing\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_Announcement_Implementing_IT_Infrastructure_in_50_days\"><\/span><strong>Impact of Announcement\nImplementing IT Infrastructure in 50 days<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Previously, small businesses were not liable to abide by such a provision. But after this announcement, the government mandates to implement e-invoicing for everyone. Now, this would drive the MSMEs to set up or upgrade their existing IT system that thoroughly supports e-invoicing.<\/p>\n\n\n\n<p>Some experts have predicted\nthat in most of the cases the businesses might find it daunting to abide by\nsuch a requirement. The reason being is that the cost of setting up\nan IT system is considerably higher, and not all entities\ncan bear such expenditure. Also, the time offered by the government to complete\nthis requirement could act as a constraint for these entities.&nbsp;<\/p>\n\n\n\n<p>The medium scale industries are now required to act accordingly for system up-gradation to ensure conformity with the existing invoicing regulations. Moreover, the tax experts have claimed that the Government\u2019s action regarding the deployment of e-invoicing across industries is a part of a systematic blueprint drafted by the <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST<\/strong><\/a> implementation committee. On a whole, the phase-wise implementation sounds to be an authentic approach, where MSMEs would get enough time to make changes to their existing IT system.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What\nis E-invoicing?&nbsp;<\/h3>\n\n\n\n<p>E-invoicing is generally referred to as electronic billing. As per the GST, framework invoices are considered an imperative part of the system.\u00a0E-invoicing offers plenty of benefits to the taxpayers such as: <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-is-E-invoicing.png\" alt=\"E-invoicing\" class=\"wp-image-20444\" width=\"521\" height=\"496\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-is-E-invoicing.png 945w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-is-E-invoicing-300x286.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-is-E-invoicing-768x731.png 768w\" sizes=\"(max-width: 521px) 100vw, 521px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_E-invoicing_would_Benefits_Tax_Authority\"><\/span>How E-invoicing would Benefits\nTax Authority?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The electronic regulations\nalso indicate that the tax authorities will be able to track down the fake\ninvoices and criminal and duplicitous credits availed by business entities\nsternly. In the view of false invoices, the government has already started\nblocking ITC (input tax credit) of any entities.&nbsp;Input tax credits (ITC)\nare part of the tax paid by an entity that could be utilized to set out the tax\nobligations for the future. As per many tax experts, many business entities are\nnegatively utilizing the GST system for the sake of the fiscal benefits.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tips_for_Easy_Implementation_of_the_E-Voicing_within_the_Organization\"><\/span>Tips for Easy\nImplementation of the E-Voicing within the Organization&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are some productive\nsuggestions to successfully implement e-voicing in the business entity, those\nare as follows:-<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ask Yourself- Why Your\nCompany Need E-Invoicing?&nbsp;<\/h3>\n\n\n\n<p>E-invoicing is in the nascent\nstage and most of the companies are not familiar with it.&nbsp;Therefore, you\nneed to work from the ground up to check its viability. First, try to outline a\nchecklist for determining if your company is ready to adapt to the changes or\nnot. Your checklist might enclose the following questions:&nbsp;<\/p>\n\n\n\n<ul><li>To what extend e-invoicing would benefit my company?\u00a0<\/li><li>Does my company fit the criteria of e-invoicing?\u00a0<\/li><li>Can my existing IT system seek some change in regards to the implementation of the e-invoice schema?\u00a0<\/li><li>Does my existing program or software offer the feature of e-invoicing integration?\u00a0<\/li><li>Do my employees need some training to get accustomed to e-invoicing?\u00a0<\/li><li>How various stakeholders would react to such changes?\u00a0<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Get Accustomed to the\nE-Invoice Schema<\/h3>\n\n\n\n<p>Previously, there was no\nstandard format or regulation for the generation of e-invoices. But with the\nintroduction of e-invoicing, things will be changed entirely. The e-invoicing\nwould adhere to a standard format for all organizations. Since e-invoicing\nadheres to various industry standards; there would be a common format available\nto all businesses for preparing an invoice for their vendors. The format will\nbe comprehensive and comprises of three parts- master, e-invoice schema, and\ne-invoice template. It would be prudent for the employees to get accustomed to\nvarious data fields under the new format.&nbsp;<\/p>\n\n\n\n<p>Along with the e-voicing, the\nbusinesses can also generate e-ways bills at the time of generating the Invoice\nReference Number (IRN). Understanding the process of generating e-invoices,\nissue of e-way bills &amp; return filing would help maximize the company\u2019s\nefficacy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Track Eligible Vendor to\nSync Your ERP Systems<\/h3>\n\n\n\n<p>Updating your ERP system with\nthe new e-invoicing standards could be a challenging undertaking.&nbsp;Since it\ncannot be sync without expertise, you might be required to track a suitable\nvendor who can effectively align your ERP system with new e-invoicing\nstandards. Don\u2019t forget to consider the experience and other important detail\nof the vendors before getting them on board. <\/p>\n\n\n\n<p>The software solution must\nfacilitate the dynamic updates and the vendor should be able to render seamless\nsupport through the e-invoicing journey. Entities outfitted with the old ERP\nsystem need not replace them entirely. All they need to find the vendor who can\nreconfigure the existing system with the new scheme.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Integrate the Existing\nSystem with the E-Invoice Standards<\/h3>\n\n\n\n<p>With the government providing a strict timeline for the adoption of e-invoicing every organization seeking prompt integration of e-invoicing standards into their <strong>ERP systems<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Enterprise_resource_planning\"><strong>[1]<\/strong><\/a><\/sup><strong>. <\/strong>There are several methods available to the organization to integrate the software system. Currently, the organization can opt for SFTP-based, API-based, and utilities such as Excel to serve this purpose.\u00a0<\/p>\n\n\n\n<p>The API-based solution is\ntime-consuming and thus required a deliberate approach as compared to an\nexternal utility such as Excel. But API-based solution seeks no manual\nintervention and facilitates the generation of e-invoices in real-time. So it\nwould be better to opt for an in-built solution that can maximize efficacy in\nthe long run. However, such a decision must be taken on account of the volume\nof invoices and budget constraints<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">&nbsp;Draft the Action Plan to Launch E-Invoicing<\/h3>\n\n\n\n<p>The installation of a new\nsystem is a cumbersome undertaking in every aspect. Collective effort is\nsomething that a company would require for the successful implementation of any\nsystem. If possible, arrange a definitive program to train your employees about\ne-invoicing. Also, outline the clear objectives regarding the same. From the\nintroductory stage to final implementation, everything must be shared with the\nstakeholders to maintain transparency. During the testing phase, try to\npinpoint possible errors while generating the invoices. Make sure that the\ne-invoice contains all the necessary information that needs to comply with the\nnew system&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The businesses with <a href=\"https:\/\/corpbiz.io\/msme-registration\"><strong>MSME registration<\/strong><\/a> that have successfully complied with the existing prerequisites would now have to concentrate on their procurement procedures. Companies must ensure that their existing IT system should have a robust mechanism in place to rectify any complications regarding the e-invoices.\u00a0Of course, all this would incurred considerable expenditure.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/e-invoicing-under-gst\/\">\nA Coast-to-Coast Coverage of E-Invoicing in GST\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In continuation of extending e-invoicing across the nation, the Government of India has decided to make it mandatory for MSMEs whose annual turnover is more than 100 cr. Taxpayers would get around 50 days to incorporate a new IT system for the implementation of e-invoicing. Previously, the firm earning more than Rs 500 crore comes [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":20458,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[176],"tags":[1254],"acf":{"service_id":"71"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3561,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20439"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=20439"}],"version-history":[{"count":21,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20439\/revisions"}],"predecessor-version":[{"id":20463,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20439\/revisions\/20463"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/20458"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=20439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=20439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=20439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}