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3 August 2019

Understanding the GST eInvoice Service

In the world of business, there is a lot to be learned.
Given its vast nature, it is something that one can’t really figure out at a single step.

The above holds true for just about everything that one engages in, from the actual startup process to the hiring of employees, the taxation regimes and so on.
One of the most confusing things among them all happens to be that of the taxation process, or more specifically, the paperwork involved.

This is very much true for taxation as much as for anything else. When it comes to the issue of GST, it can be said that the filing process is about as complicated as for anything else.

In an effort to simplify this process of filing GST returns for a specific GST number, in Delhi or otherwise, the government is mulling on the creation of an invoice service.
This is something that has been considered a great step in making the process more efficient for both businesses as well as tax authorities.
It may sound like a rather complex thing, but is in fact very easy to understand.

To start off, one needs to understand the concept of an invoice.
Whenever a business entity engages in the sale of goods or services, a bill is issued that has details of the business, sales, the amount charged, etc.

For the most part, this was done the old fashioned way, using pen and paper. All of these invoices would then be recorded for further calculations, for purposes ranging from business planning to the filing and payment of taxes.

The eInvoice service of GST, whether for GST registration in Delhi or elsewhere sought to create a centralized electronic invoice service, in which all existing transactions would be transmitted using an official electronic channel.

A good example that one can compare this system to, would be that of a telephone or mobile bill, sent to the end-user via email as opposed to physical mail. An invoice is somewhat similar.
Also to note here is that the government has implemented similar systems in the past, such as that of electricity bills, which were made available online to consumers, as opposed to sending them a physical bill at the end of the month. 

There are several advantages to the eInvoice system, the most important of which are mentioned in the list below.

1. Filing Tax Returns

The biggest  advantage of an invoice service is that it helps to speed up and simplify the process of tax filing for a given gst number, in delhi as well as any other state.
With every single transaction available on the GST invoice system, all that a business has to do is get the total amount of taxes to be paid, and finish the job.
There is no need for one to spend a great deal of time, calculating the exact amount of taxes to be paid and so on, in order to get the job done.
This is something very important to remember, if one were to apply for a GST, in Delhi or anywhere else.

2. Claiming Tax Credits & Benefits

The existing tax regime allows for several programs that promote business growth and development.
One of the criterions when it comes to claiming these tax credits and benefits is that of paperwork. This is a good point to remember, if one were to register for GST, in Delhi or any other state for that matter.
Given that all the necessary paperwork is already present with the government, it will allow for any existing tax credits and benefits to be claimed with relative ease. You can get more details about these tax credits and benefits, by checking up with a suitable GST consultant in Delhi or whichever state you reside in.

3. Curbing Tax Evasion

The third advantage of the eInvoice service, is that of curbing tax evasion for any given GST no, in Delhi or otherwise.
Since all transactions under GST registrations are updated in real-time, there is a smaller margin by which tax evasion could take place.
This could help in curbing the lack of law enforcement and corruption were inherent in many parts of Indian society.

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