| Jul-11-2023

Critical Challenges for Chartered Accountants related to the new e-Invoicing System

The introduction of e-invoices was approved by GST council during its 37th meeting held in September 2019 with the key objective to ensure inter-operability of e-invoices across the GST ecosystem. Invoice being a key document and e-invoicing being a reform related to it, it is extremely important for businesses to understand it fully and prepare for it, accordingly. In the recent update, from 1st August 2023, e-Invoicing will be essential for all the registered persons whose aggregate turnover (based on PAN) in any prior fiscal year from 2017-18 onwards exceeds 5 crores. 

What is e-Invoicing? 

e-Invoice known as ‘Electronic invoicing’ is a system in which all B2B invoices are electronically uploaded and authenticated by the designated portal. 

Best e-Invoicing Software Solution for Businesses in India 

Generate e-Invoice Instantly in TallyPrime 

Post successful authentication, a unique Invoice Reference Number (IRN) is generated for each invoice by IRP. Along with IRN, each invoice is digitally signed and added with a QR code. This process is collectively called as e-invoicing under GST 

Know more on IRN, Format and process to generate it.

Challenges surrounding e-invoicing

While the government aimed at simplifying the invoice generation process by introducing e-invoicing for businesses, there seem to be some resistance from the B2B business owners. Let’s look at some of the challenges which will be faced by taxpayers on the implementation of the new provisions under e-invoicing: 

  • Capturing real time data through an integrated ERP system  
    One of the primary challenges is capturing real-time data through an integrated ERP system. Invoice generation is a time-sensitive process, and with the implementation of e-invoicing, businesses need to seamlessly modify their existing invoice generation processes to comply with the new provisions. Chartered accountants can play a crucial role in helping businesses adapt their software or ERP systems to incorporate the required changes without disrupting their existing methods. 
  • Sorting B2B and B2C invoices  
    Another challenge is distinguishing between B2B and B2C invoices. E-invoicing is applicable only to B2B transactions, while B2C invoices only require the generation of e-way bills. Sorting through a large volume of invoices to identify B2B transactions can be a time-consuming task. Chartered accountants can assist businesses in developing efficient systems and processes to filter and categorize invoices correctly, minimizing the effort involved. 
  • Tracking of invoices  
    Tracking invoices is another area that presents challenges. While an offline tool is available for generating e-invoices, the manual process of generating JSON files, authenticating invoice data, and uploading it to the Invoice Registration Portal (IRP) can be cumbersome, especially for businesses dealing with high volumes of invoices. Chartered accountants can guide businesses in selecting appropriate software solutions that streamline the tracking of invoices, providing real-time status updates and ensuring compliance with the e-invoicing requirements. 
  • Revised workflow to process relevant documents 
    Furthermore, the revised workflow for processing relevant documents adds complexity to the e-invoicing process. Separate workflows need to be created for delivery challans, bill of supply, job work, and similar transactions. This additional effort can be minimized with the assistance of chartered accountants who can provide insights on developing streamlined workflows and integrating them into existing business operations. 

While e-invoicing is a new concept under GST, and challenges and drawbacks may emerge during its full-fledged implementation, businesses can benefit from the expertise of chartered accountants. These professionals can help businesses make a smooth transition to the e-invoicing system by selecting suitable GST software, providing guidance on compliance, and assisting with crucial functions such as e-invoice generation, cancellation, bulk uploads, and data validation. 

In conclusion, chartered accountants play a vital role in helping businesses overcome the challenges associated with the implementation of e-invoicing. Their expertise can ensure that businesses efficiently adapt their processes, navigate the complexities of the new system, and maintain compliance with GST regulations. By leveraging the knowledge and guidance of chartered accountants, businesses can successfully transition to e-invoicing while minimizing disruptions and maximizing the benefits of this reform. 

Know more about e-invoices in GST 

e-invoicing Software 

e-Invoice in GST 

GST Invoice 

How to Generate E-Invoice in GST 

How to Transit to e-Invoice System 

Invoice Reference Number (IRN) 

Who Should Issue an e-Invoice in GST 

Generate e-Invoice Instantly in TallyPrime 

How to Generate Bulk e-Invoice in TallyPrime 

Working of e-Invoice System 

Similar reads

Highlights of Interim Budget 2024-25 regarding GST

The Hon’ble Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, while presenting the Interim Budget 2024-25 in Parliament today asserted that by unifying the highly fragmented i


Read More


The Goods and Services Tax Network (GSTN) ushers in a transformative update to the GSTR-1 return, unveiling two pivotal tables – Table 14 and Table 15.


Read More

5 New Capabilities of TallyPrime that Simplifies GST Compliance for Your Business

The latest release of TallyPrime is loaded with key features such as GST reconciliation ( GSTR-2A, GSTR-2B, and GSTR-1), multi-GSTIN support in a single company, powerful report filters, and..........


Read More

Key Recommendations of the 52nd GST Council Meeting: All You Need To Know

Key Recommendations of the 52nd GST Council Meeting: All You Need To Know 📌 A. Recommendations relating to GST rates on goods and services: 📢 I. Changes in GST rates of goods: ➡️ GST rates for "F


Read More

E-invoice Rejections & Resolutions

NIC has published the following error codes, error message, the reasons for the errors and the corresponding resolutions to help you resolve errors faced during e-Invoice upload to the NIC portal.


Read More