Everything You Ought to Know About IRN in E-Invoice
IRN is a unique number that can be generated for any invoice uploaded on the Invoice Registration Portal (IRP). We will try to cover all the aspects related to IRN in this blog.
What is IRN?
The full form of IRN is Invoice Reference Number; IRN is a 64-character unique number that can be generated for all the invoices on the IRP using a hash generation algorithm under the new e-invoicing system. It shall be noted that at the time of providing the invoice to the recipient, the supplier needs to mention IRN on this invoice. IRN helps the tax officers to authenticate the transaction either via IRP or offline app.
What Details are used to Generate IRN?
The Invoice Reference Number (IRN) is generated on the basis of the following details:
- GSTIN of the Supplier
- Financial Year
- Type of Document
- Invoice Number
Pre-requisites to Generate an IRN
Here is the list of pre-requisites to generate an IRN:
- A person generating IRN must be a GST registered taxable person.
- At the time of generating IRN, the taxpayer must have the required document such as invoice, credit, or debit note.
Invoice Reference Number (IRN) Example
Here is an example through which you can understand the algorithm of an Invoice Reference Number (IRN):
- GSTIN of the supplier- 31AAMFF1571T10R
- Financial Year – 2020-21
- Document Type – CDN
- Invoice Number – 2020-21/DL/01
How to generate an Invoice Reference Number (IRN)?
The taxpayer who falls under the e-invoicing mandate needs to generate an e-invoice with IRN and a signed QR code. He/she can easily generate IRN under this new e-invoicing system either using an e-invoicing portal or by integrating e-invoicing software in their existing ERPs such as Oracle, SAP, Microsoft Navision, etc including in-house ERPs. However, before choosing any e-invoicing software provider read the following points.
Who are Eligible to Generate E-Invoice?
As per the recent mandate, any taxpayer whose aggregate turnover in any financial year 2017-18, 2018-19, and 2019-20, exceeds INR 100 Crores dealing in B2B and export supplies needs to generate an e-Invoice. However, there is speculation that this new e-invoice system can be implemented to all the taxpayers who are dealing in B2B and export supplies and whose turnover is more than INR 5 Crores.
Invoice Reference Number (IRN) validity
The IRN generated for an invoice will stay forever. However, any e-invoice generates on IRP stays for up to 24 hours. After that, you cannot download the generated e-invoice.
How to Validate an Invoice?
After registering an invoice on the IRP, IRP issues Invoice Reference Number (IRN) and a signed QR code, through these things a recipient or buyer can easily validate an e-invoice, whether it is registered on the IRP or not. However, to check the authenticity of an e-invoice issued the user needs to download a QR code mobile application.
How Can GSTrobo® Help You?
GSTrobo® a division of Binary Semantics Ltd. is a one-stop GST compliance software provider that offers industry-leading GST, e-way bill, and e-invoicing software. These solutions not only seamlessly integrate with all the ERPs but also automates most of your GST process. So, choose GSTrobo™ to stay GST compliant.
