MODE OF
E-INVOICING AND USAGE OF INVOICE SOFTWARE
Generally, there is a belief that COVID -19 had
significant impact of in currency circulation.
The Covid put greater thrust on digitization and dependence on
contactless transactions. Also, there
was tremendous growth in the usage of UPI, IMPS mode in financial transaction.
Many platforms like PhonePe, Google Pay became more popular as alternate modes
of fund transfer. Even, there is a belief
that the demonization helped in reducing the dependence on hard currency. The
demonetization intended to reduce the usage of hard currency in financial
transactions. However, the currency circulation is going in an accelerated mode
during all the previous years.
Currency in Circulation (CiC) includes banknotes and
coins. Presently, the Reserve Bank issues notes in denominations of `2, `5,
`10, `20, `50, `100, `200, `500 and `2,000. Coins in circulation comprise 50
paise and `1, `2, `5, `10 and `20 denominations. According to RBI report, the
volume for the Banknotes in circulation in terms of value, reached INR
31,05,721crores by 2022, almost double prior to demonization.
Currency in circulation is the amount of money that has
been issued by monetary authorities minus currency that has been removed from
an economy. Currency in circulation is an important component of a country’s
money supply. Currency in circulation can consider as currency in hand because
it is the money used throughout a country’s economy to buy goods and services.
The currency in circulation in a country is determined by the nation’s need or
demand for cash. RBI is responsible for
ensuring that there is enough money in circulation to meet the economy’s
commercial demands, and for releasing additional notes and coins when there is
a demand for the same.
Now, with the reduction of threshold limit on e-invoicing
to INR 5 crores by Jan 1, 2023, one can expect further control on currency
circulation. The process of validating
all E-invoices in B2B transactions by the GST Network (GSTN) will push up
further digitization in commercial transactions soon the threshold limit is
brought down. This will compel all
commercial firms to depend on reliable invoice software to run their business
since the GSTIN portal needs data points to validate e-invoices. E-invoicing ensures that the invoices
generated by accounting software are valid throughout. The system automatically
compiles such data during the GST filing process.
The invoice software helps to go for e-invoicing in order
to facilitate e-invoicing. Such software generates invoices, transmit the data
to GSTin portal. It further pushes up
digitization in work environment and reduce the usage of currencies.
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