Generation of GST Invoice Reference Number (IRN)

The current article explains the structure of the Invoice Reference Number; a brief understanding of the e-invoice schema and steps to generated the Invoice Reference Number (IRN).

Structure of Invoice Reference Number–

Basically, Invoice Reference Number (i.e., IRN) is a 64-character long number allotted by the e-invoice portal. IRN is generated using the hash generation algorithm. Notably, IRN is uniquely generated for each invoice uploaded on the e-invoice portal.

64-character long IRN consists of the following parts/ details-

Understanding e-invoice schema–

Notably, e-invoice doesn’t mean the generation of an invoice from the GST portal. Under e-invoice, a supplier will firstly generate normal invoice via ERP/ accounting software. Thereafter, reporting of the invoice is to be done electronically as per the e-invoice schema.

E-invoice schema consists of both the mandatory fields and optional fields. Accordingly, the supplier needs to ensure that the ERP/ accounting software, used for generating a normal invoice, supports the set parameters.

List of the mandatory field as per e-invoice schema notified in July 2020 are-

• Document Type Code,
• Supplier’s Legal Name,
• Supplier’s GSTIN,
• Supplier’s Address,
• Suppliers’ Place,
• Suppliers’ State Code,
• Suppliers’ PIN Code,
• Document Number,
• Preceding Invoice Reference and date,
• Document Date,
• Recipient’s Legal Name,
• Recipient’s GSTIN,
• Recipient’s Address,
• Recipient’s State Code,
• Place of Supply State Code,
• PIN Code,
• Recipient’s Place,
• Invoice Reference Number (IRN),
• Shipping To – GSTIN,
• Shipping To – State; PIN Code and State Code,
• Dispatch From – Name; Address; Place and PIN Code,
• Service (Y/N),
• Supply Type Code,
• Item Description,
• HSN Code,
• Item Price,
• Assessable Value,
• GST Rate,
• IGST Value, CGST Value and SGST Value,
• Total Invoice Value.

Steps for the generation of Invoice Reference Number (IRN)-

In order to generate IRN, the supplier needs to follow the below narrated steps-

STEP 1 – Generation of normal invoice-

The supplier is firstly required to generate normal invoice using the ERP/ accounting software. However, the supplier has to see and ensure that all the above-mentioned mandatory e-invoice schema parameters are satisfied.

STEP 2 – Generation of JSON file-

JSON is a short form of JavaScript Object Notation. The ERP/ accounting software of the supplier should be capable of generating the JSON file of the normal invoice prepared at STEP 1.

STEP 3 – Generation of Invoice Reference Number (IRN)-

JSON file so generated at STEP 2 now needs to be uploaded on the Invoice Registration Portal (IRP). Such uploading can either be done in any of the following manners-

Post submission of JSON file, IRP will undertake the following procedure-

• Carry out duplication check with GST system. In other words, it will verify that the same invoice by the same supplier in the same Financial Year is not uploaded twice.
• On confirmation, IRP will generate IRN. Further, it will digitally sign the JSON and add a QR code to the same.
• Send back the digitally sign JSON to the supplier.
• IRP will also share the uploaded invoice with GST as well as the e-way bill system.

Notable points-

• Following returns will be auto-updated, based on the e-invoice data forwarded to GST system-
  • Form GSTR-1 of the supplier; and
  • Form GSTR-2B/ GSTR-2A of the buyer.
• With the help of e-invoice data forwarded to e-way bill system, ‘Part A’ of the respective e-way bill will be updated. Accordingly, in order to create/ generate the e-way bill, only vehicle number will be needed to be entered.