No.PR-248 September 10, 2020 New Delhi E-invoicing will simplify the GST return system by reducing reconciliation problems and compliance burden: say experts at PHDCCI video conference PHD Chamber of Commerce and Industry (PHDCCI) organized a video conference on Navigating GST E-Invoicing through Digital Platform here today. While explaining the e-invoicing system to be introduced from 1st October, 2020, experts opined that e-invoicing will simplify the GST Return System by reducing reconciliation problems and compliance burden. Welcoming the Government’s move to introduce e-invoicing, Mr. R S Sachdeva, Mentor, Punjab State Chapter, PHDCCI stated that this is a big move towards digitalisation of the business and commerce landscape. It is aimed at ensuring standardisation, uniformity and interoperability across the GST ecosystem. He added that e-invoicing will eliminate the tedious task of compilation of invoices at the end of a return period and also help in curbing tax evasion. Mr. Sachdeva shared that PHDCCI has organized series of seminars on GST in different cities of Punjab to help industry members understand and comply with the GST Tax system. In his introductory remarks, Adv. Pawan K Pahwa, Chair, Taxation Committee, Punjab State Chapter & Partner, Panacea Legal Services said that the mechanism of e-invoicing is being introduced in view of large scale tax evasion. He added that the new system will help in improving sales reporting and compliance as supplies through invoices not authenticated by GST Portal will be considered as invalid invoice and will not qualify for input tax at the buyer’s end. Addressing the Session, Mr. Krishan Arora, Partner, Grant Thornton India said that e-invoicing is a big IT driven change in the system. He shared that under-reporting of sales has resulted in huge loss to the Government. Therefore, the new system is being introduced from 1st October, 2020. He added that e-invoices reduce the risk of fraudulent bills from a buyer’s perspective as the authenticity of the e-invoices is validated automatically. Explaining the process of e-invoicing, Mr. Arora informed that E-invoicing is a system in which B2B invoices are authenticated electronically by GSTN for further use on the common GST portal between suppliers and buyers. It will require uploading of invoice details on a notified Invoice Registration Portal (IRP) where validation of key invoice particulars would be undertaken, and a unique number called IRN along with a digitally signed QR code will be issued. Post issuance of the IRN and QR code, the uploaded invoice will attain the status of a Government validated document. Since every invoice has to be validated, this necessitates the transformation of existing accounting ERPs and an overhaul of related processes for a successful adaptation to the newly envisaged requirement. He informed that their company, Grant Thornton India has developed user friendly software which will make the compliance of e-invoicing very easy. Mr. Karan Kakkar, Associate Partner and Mr. Parikshit Jain, Associate Director, Grant Thornton India made a detailed Presentation to explain the various aspects and working of the new software developed by their company. They informed that their software can be integrated into the users existing ERP system or can be used externally. They shared that this user friendly software is a cloud based tool with many inbuilt features like generation of invoice in PDF format, bulk uploading of invoices, archiving of data for 8 years, timer for reminding cancellation of invoice (if required). Thanking the speakers for sharing very useful information, Adv. Pawan K Pahwa said that as a few weeks are left for implementation of the new invoicing system, it is time for companies to have some utility for their accounting system to comply with the new requirements. He said that although initially, e-invoicing will be mandatory only for companies having turnover of Rs. 500 crores and above but shortly the Government intends to make it applicable to companies with turnover from Rs. 100-500 crores as well. Therefore, industry should make it a point to be ready to integrate the new system of invoicing in their accounting system. More than 100 leading Industrialist from Pan India participated and benefited from the programme. Ends Media Division PHD Chamber of Commerce and Industry
PHD Chamber of Commerce and Industry, established in 1905, is a proactive National Apex Chamber working at the grass-root level and with strong national and international linkages.