Key Takeaways
- E-invoicing is mandatory for B2B invoices above the ₹5 crore annual turnover threshold, and larger taxpayers face strict time limits for reporting invoices to the IRP.
- A GST-ready ERP should generate IRN, QR code and e-way bills directly from the sales invoice, with no re-typing.
- Automatic GSTR-2B reconciliation protects your input tax credit.
- Always confirm current rules with your CA, because GST requirements are updated frequently.
For Indian businesses, an ERP that is not GST-ready is not really an ERP. E-invoicing, e-way bills, ITC reconciliation and audit trail requirements have turned compliance into a daily process rather than a monthly one. This checklist shows the features to insist on when choosing or upgrading your ERP.
1. Direct e-invoice (IRN) generation
When a B2B invoice is saved, the ERP should send it to the Invoice Registration Portal (IRP) through a GSP or direct API, receive the IRN and signed QR code, and print them on the invoice automatically. Cancellations and credit notes should follow the same flow. Larger taxpayers also face time limits for reporting invoices to the IRP, so automation avoids rejected or late invoices.
2. E-way bill generation from the invoice or delivery challan
The ERP should create the e-way bill (Part A and Part B) using invoice, transporter and vehicle details, and allow updates for vehicle changes or extensions. Stock transfers between branches and job-work movements should also be covered.
3. HSN/SAC and tax rate masters
Every item and service should carry the correct HSN/SAC code and GST rate, with support for rate changes from a specific date. This matters whenever GST rates are rationalised.
4. GSTR-1 and GSTR-3B ready data
Look for summary reports in the government format, JSON export or direct filing via GSP, and validation checks that flag missing GSTINs, wrong place of supply or invalid HSN codes before filing.
5. GSTR-2B reconciliation
Your ERP should import GSTR-2B and match it against purchase bills automatically, showing matched, mismatched and missing invoices. This helps you claim only eligible input tax credit and follow up with vendors who have not uploaded invoices.
6. TDS and TCS handling
Correct deduction on vendor payments, TCS on applicable sales, and reports for quarterly returns save your accounts team significant effort.
7. Audit trail (edit log)
Companies are required to maintain accounting software with an audit trail that records every change and cannot be disabled. Confirm that your ERP logs who changed what and when, and keeps that history.
8. Multi-GSTIN and branch support
If you are registered in multiple states, the ERP must manage separate GSTINs, inter-state stock transfers as supplies, and state-wise returns from one database.
Quick compliance checklist
| Feature | Must-have? | Why it matters |
|---|---|---|
| IRN + QR generation | Yes (if above threshold) | Invoice validity |
| E-way bill from invoice | Yes | Goods movement compliance |
| GSTR-2B reconciliation | Yes | Protects ITC |
| Audit trail | Yes | Companies Act requirement |
| Multi-GSTIN | If multi-state | State-wise compliance |
| TDS/TCS | Usually | Income-tax compliance |
Tally, Odoo or custom ERP for GST?
Tally has strong GST features for accounting. Odoo supports Indian GST localisation and e-invoice/e-way bill integration through connectors. A custom ERP can integrate directly with a GSP API and match your exact workflow. Compare them in our guide to Odoo vs custom ERP vs Tally.
Note: GST thresholds and timelines change. This article is general information, not tax advice; confirm current rules with your Chartered Accountant.
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Explore ERP DevelopmentGet a Free QuoteRelated reading: Odoo vs Custom ERP vs Tally · ERP Implementation Guide
Frequently Asked Questions
Is e-invoicing mandatory for all businesses?
No. E-invoicing applies to B2B supplies by businesses whose aggregate annual turnover exceeds the notified threshold (currently ₹5 crore), with certain exempt categories. Check the latest notification with your CA.
Can ERP generate e-way bills automatically?
Yes. A GST-ready ERP connected to the e-way bill system through a GSP or API can generate e-way bills directly from invoices or delivery challans.
What is GSTR-2B reconciliation in ERP?
It is the automatic matching of your purchase records with the GSTR-2B statement from the GST portal, so you can identify mismatches before claiming input tax credit.
Does Odoo support Indian GST?
Yes. Odoo has an Indian localisation for GST, and e-invoice and e-way bill integration can be configured through connectors or custom development.
