Avalara, Inc., a leading provider of cloud-based tax compliance automation for businesses of all sizes, today announced the availability of Avalara India GST e-invoicing, an end-to-end solution that helps companies manage e-invoicing requirements and comply with India’s e-invoicing reform.
The new offering builds on Avalara’s range of technological solutions available to improve the Goods and Services Tax (GST) compliance experience for businesses in India by validating, storing, and managing invoices, and providing the option to automate GST returns and e-way bills.
The latest announcement on e-invoicing enforcement, beginning October 1, 2020, has created urgency among businesses to conform with the new legislative reform and has increased the compliance and technological challenges on businesses.
Under the Central Board of Indirect Taxes and Customs rule, businesses having an annual turnover above Rs. 500 Crores (approximately USD 68 million) in India will be required to generate tax invoices or debit-credit notes from their enterprise resource planning (ERP) or other accounting systems and register their transactions with the government-authorised invoice registration portal.
After the portal verifies the invoice, it is digitally signed by the GST Network (GSTN), which generates the signed e-invoice with an Invoice Reference Number (IRN) and a Quick Response code (QR Code). These e-invoices are then issued to the business for maintaining records and sharing with their business stakeholders.
Complying with new e-invoicing requirements means that businesses must update their ERP and accounting systems to manage their GST reporting obligations effectively. Global enterprises operating in India will also need to comply with e-invoicing requirements, which requires the continuous generation of e-invoices with correct IRNs and QR codes. Due to the real-time nature of e-invoicing, businesses that manually generate e-invoices will face added complexity and burden.