Most Indian businesses already deal with GST. E-invoicing adds a step: certain invoices must be registered on the government's Invoice Registration Portal to get a unique reference number and QR code. Your ERP or accounting software should handle this without extra typing.
The rules and the turnover limit for e-invoicing change over time. Always check the current position on the GST portal or with your chartered accountant. This article does not give legal or tax advice.
What good software should do
- Create the invoice in the required format.
- Send it to the portal and store the reference number and QR code on the invoice.
- Let you cancel or correct an invoice within the allowed rules.
- Create e-way bills for goods movement when required.
- Keep your data ready for GST returns.
A buyer's checklist
- E-invoicing connection. Is it built in, or does it need an add-on?
- E-way bills. Can you create them from the invoice or delivery document?
- Returns support. Does it prepare the data you need for your returns?
- Updates. Who updates the software when rules change, and how fast?
- Multiple GSTINs. If you have several registrations, can one system handle them?
- Audit trail. Can you see who created, changed or cancelled an invoice?
- Reconciliation. Can you compare your books with what appears on the portal?
Questions for your implementation partner
- Have you set this up for a company in our industry?
- What happens if the portal is down when we need to invoice?
- Who maintains the integration after go-live?
- How do you test it before we start using it live?
Common mistakes
- Assuming the software is compliant without testing real invoices.
- Skipping staff training on cancellations and corrections.
- Not planning for rule changes.
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FAQ
Does every business need e-invoicing? It depends on your turnover and the current rules. Ask your accountant.
Can small businesses use the same software? Many ERPs and accounting tools offer it. Check the plan you plan to buy.
