Studies have shown that the total cost of manual paper invoicing can be much higher than e-invoicing. The Indian Union Budget 2015-16 has allowed Invoices, Challans, and Consignment notes etc., to be digitally signed with digital signature certificates and sent to customers electronically. As per the regulations pertaining to invoicing, an invoice can be authenticated by means of a digital signature.
What is e-Invoicing?
e-Invoicing (electronic invoicing) is the exchange of invoice documents between a supplier and a buyer in an integrated electronic format. Unlike traditional paper invoices or even PDF invoices sent via email, e-invoices are created, sent, and processed electronically using a specific standard. This automation helps streamline the invoicing process, reduce errors, and improve efficiency.
As a part of Goods and Services Tax (GST) regulations in India, all invoices and forms that are uploaded as a part of GST filings are required to be digitally signed. E-Lock Digital Signature software help your organization become GST compliant and save costs and improve process efficiency. PKI based Digital signatures are legally valid in India and other countries, hence the organizations can now send and store electronic invoices that are digitally signed using digital signature certificates.
Organizations can digitally sign their documents from anywhere, anytime, at just click of the mouse and easily transfer, store and retrieve signed documents. As a part of ‘Digital India’ initiative, many Organizations are shifting to paperless office. E-Lock provides different types of digital signing software suitable to different types of companies with different needs. We provide either independent, standalone software or solutions that can integrate with your applications to enable digital signing from within your application/ ERP. All types of organisations whether large or small, whether using ERPs, tally or MS office can use our digital signature solutions for digitally signing invoices and other documents.
Digital signing solution components:
- Class 2 or Class 3 Individual and Organization digital signature certificates or Document Signer certificates issued by any certifying authority in India
- E-Lock digital signing software
How Digital Signatures Work in e-Invoicing:
- Invoice Creation: The supplier creates an e-invoice using their accounting or invoicing software.
- Digital Signing: The e-invoice is signed with a digital signature, ensuring its authenticity and integrity. This involves the use of a digital certificate issued by a trusted Certificate Authority (CA).
- Transmission: The digitally signed e-invoice is sent to the buyer electronically.
- Verification: The buyer’s system verifies the digital signature to ensure the invoice’s authenticity and that it hasn’t been tampered with.
- Processing: Once verified, the invoice can be processed for payment in an automated manner.
How Digital Signatures Work in e-Invoicing:
- Authentication: Digital signature validates the identity of the invoice sender, ensuring that the invoice is from a legitimate source.
- Integrity: Ensures that the content of the invoice has not been altered since it was signed. If any changes are made, the digital signature will get invalidated.
- Non-repudiation: Digital signatures provide non-repudiation, meaning that the sender cannot later deny sending the e-invoice or claim that its contents were altered.
- Efficiency and Speed: e-Invoices are processed faster than paper invoices. They eliminate the need for manual data entry and reduce the risk of errors.
- Compliance: Meets legal and regulatory requirements for electronic transactions in many jurisdictions, making it legally binding and enforceable.
- Streamlined Workflows: With the use of digital signatures, the process of sending and receiving e-invoices becomes faster and more efficient.
- Security: E-invoices often contain sensitive financial information. By using digital signatures, the confidentiality of this data is safeguarded, as the signature encrypts the document, making it nearly impossible for unauthorized parties to access or modify the information.
- Environmental Benefits: Digital Signature reduces paper usage and the associated environmental impact.