{"id":674,"date":"2021-02-10T06:42:09","date_gmt":"2021-02-10T06:42:09","guid":{"rendered":"https:\/\/www.gstrobo.com\/blog\/?p=674"},"modified":"2022-03-22T13:42:29","modified_gmt":"2022-03-22T13:42:29","slug":"benefits-of-e-invoicing-for-msmes","status":"publish","type":"post","link":"https:\/\/www.gstrobo.com\/blog\/benefits-of-e-invoicing-for-msmes\/","title":{"rendered":"Benefits of E-Invoicing for MSMEs"},"content":{"rendered":"\n

E-invoicing has become a reality for businesses with a turnover of INR 500 Crores or more on 1st<\/sup> October 2020. Then, on 1st<\/sup> January 2021, e-invoicing got implemented on businesses having INR 100 Crores or more turnover.  Moreover, as per the recent mandate e-invoicing will be applicable for all businesses with turnover INR 20+ crores from 1st April 2022.<\/p>\n\n\n\n

\"benefits-of-e-Invoicing-for-msme\"<\/figure><\/div>\n\n\n\n

MSME Full Form and Meaning<\/strong> <\/h3>\n\n\n\n

The full form of MSME is Micro, Small, and Medium Enterprises. MSME was introduced by the Government back in the year 2006. The Ministry of Micro, Small, and Medium Enterprises is the governing body that is responsible for the formulation and administration of MSME rules and laws. <\/p>\n\n\n\n

The definition of MSMEs was re-defined by the Micro, Small, and Medium Enterprises Development (Amendment) Bill, 2018. As per this new definition, MSMEs types are grouped based on their annual turnover. <\/p>\n\n\n\n

Type of MSME <\/strong><\/td>Turnover<\/strong> <\/td><\/tr>
Micro <\/td>5 Crores <\/td><\/tr>
Small <\/td>5 Crores to 75 Crores <\/td><\/tr>
Medium <\/td>75 Crores to 250 Crores <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Benefits of E-Invoicing for MSMEs<\/strong><\/h3>\n\n\n\n

One of the primary reasons why the government introduced e-invoicing<\/a> is to abolish tax evasion and reduce fake invoicing. Below are some of the benefits which MSMEs can enjoy under e-invoicing:  <\/p>\n\n\n\n

  1. E-Invoicing <\/strong>Help<\/strong>s<\/strong> MSMEs <\/strong>to <\/strong>Secure Loans Faster <\/strong> <\/li><\/ol>\n\n\n\n

    Getting loans has consistently posed a significant challenge for MSMEs. MSMEs need to file a plethora of documents to get a loan sanctioned from banks and other financial institutions. However, with e-invoicing<\/a> in place, MSMEs can secure loans fast and easily, as banks can score them based on the compliance rating. <\/p>\n\n\n\n

    1. Reduced<\/strong> Complianc<\/strong>e<\/strong> Burden<\/strong> <\/li><\/ol>\n\n\n\n

      Since all the systems are integrated with one another, e-invoice data streams to GSTN and e-way bill system, which will ultimately reduce compliance burden. <\/p>\n\n\n\n

      1. Easy <\/strong>Tracking of Invoices <\/strong> <\/li><\/ol>\n\n\n\n

        In the newly introduced e-invoicing system, it is easy to track the status of e-invoices<\/a> whether they are approved, denied, or pending by the client. <\/p>\n\n\n\n

        1. 100% Accurate ITC Claim<\/strong> <\/li><\/ol>\n\n\n\n

          There are chances of errors in case of manual filing GST returns<\/a> this could cause differences in the ITC availed and proposed. Since details are available in GSTR-2B and GSTR-3B<\/a> on a real-time basis, with e-invoicing the taxpayer can claim Input Tax Credit (ITC) easily and accurately. <\/p>\n\n\n\n

          1. Reduced Fake<\/strong>\/ Duplicate<\/strong> Invoices<\/strong> Incidents<\/strong> <\/li><\/ol>\n\n\n\n

            E-invoice mechanism has helped tax authorities to restrain the tax evasion incidents by keeping track of fake invoices or duplicate invoices that are issued. <\/p>\n\n\n\n

            How Can GSTrobo\u00ae Help you?<\/strong> <\/h3>\n\n\n\n

            GSTrobo\u00ae<\/a> (a division of\u202fBinary Semantics<\/a>) is an authorized GSP and enlisted SDA with GSTN. GSTrobo\u00ae has an integrated and collaborative approach between E-Invoice,\u202fGST compliance<\/a>,\u202fE-Way bill<\/a>\u202f& telematics that has helped many organizations go digital completely with ease.<\/p>\n","protected":false},"excerpt":{"rendered":"

            E-invoicing has become a reality for businesses with a turnover of INR 500 Crores or more on 1st October 2020. Then, on 1st January 2021, e-invoicing got implemented on businesses having INR 100 Crores or more turnover.  Moreover, as per the recent mandate e-invoicing will be applicable for all businesses with turnover INR 20+ crores from 1st April 2022. … <\/p>\n","protected":false},"author":1,"featured_media":834,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"ub_ctt_via":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[66],"tags":[194,192,193],"class_list":["post-674","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-e-invoicing","tag-benefits-of-e-invoicing-for-msmes","tag-msme","tag-msme-full-form"],"aioseo_notices":[],"featured_image_src":"https:\/\/www.gstrobo.com\/blog\/wp-content\/uploads\/2021\/02\/Benefits-of-E-Invoicing-for-MSMEs-2.jpg","author_info":{"display_name":"GSTrobo","author_link":"https:\/\/www.gstrobo.com\/blog\/author\/gstblog\/"},"_links":{"self":[{"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/posts\/674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/comments?post=674"}],"version-history":[{"count":15,"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/posts\/674\/revisions"}],"predecessor-version":[{"id":2119,"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/posts\/674\/revisions\/2119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/media\/834"}],"wp:attachment":[{"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/media?parent=674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/categories?post=674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gstrobo.com\/blog\/wp-json\/wp\/v2\/tags?post=674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}