e-Invoice is an authenticated GST invoice with IRN and digitally-signed QR Code printed on the invoice.
e-Invoicing, also known as Electronic Invoicing is a type of online authentication of invoices under GST. This authentication is done by the Government system via IRP( Invoice Registration Portal).
Using IRP, every invoice gets a unique IRN(Invoice Reference Number) and a digitally signed QR Code. The QR Code includes all the essential details related to the invoice. IRP system automatically signs the invoice by extracting the necessary details from the invoice.
All the GST registered businesses that come under B2B, B2G, and export businesses have to create e-Invoice under GST. Once the invoice gets authenticated and IRN is generated, it is compulsory to upload the e-Invoice on the GST portal in real-time.
Only the GST registered supplier can issue the e-Invoice. But it doesn’t mean, all the suppliers should issue e-Invoice. There are some criteria which the Government has issued -
B2B, B2G(Business to Government), and export businesses can issue e-Invoice.
Businesses having the Aggregate Annual Turnover of more than 50 crores should create e-Invoice.
The transporter and the buyer can not issue e-Invoice. But, eCommerce operators can issue e-Invoice on their platforms on the behalf of the seller.
Following are the businesses that can not generate e-Invoice under GST -
NBFC(Non-Banking Financial Company)
Business registered under SEZ unit(Special Economic Zone)
Supplier of transportation service for passengers
The E-Invoice transaction under B2B(includes both domestic and export) and B2G.
eCommerce operators have also covered under e-Invoice.
In the case of RCM(Reverse Charge Mechanism), the transaction of B2B supply under SEZ is also covered under e-Invoice.
Under RCM, if the transaction comes from an eCommerce platform then e-Invoicing under GST is covered.
There is no need to create IRN for SEZ units but for the business under SEZ developer, it is compulsory to create an IRN invoice.
The transporters and buyers are not allowed to create e-Invoice. Only the supplier can create the e-Invoice under GST. The transaction which happened under importing of goods or services is also not covered under e-Invoice.
E-invoice is not required for B2C(Business to Consumer). But any B2C business having more than 500 crores aggregate annual turnover is complied to have a self-generated QR Code on the invoice.
Only 3 types of documents can be created under GST e-Invoicing.
Delivery challan and bill of Supply are not considered under GST e-Invoice.
To generate IRN invoice, it is important to have the following details on the e-Invoice. All these data points are essential to generate an e-Invoice.
Supplier GSTIN (GST Number)
Suppliers’ invoice number
The financial year in govt. Specified format. (YYYY-YY). For example, 2019-20
Description of goods or services
GST Rate (5%, 18%, 28%)
GST Type (CGST/SGST/IGST)
Total Invoice Value
For creating a successful IRN generation of the invoice. One should keep 2 things when creating the invoice.
In IRN generation a maximum of 1000 line items is allowed per e-Invoice.
“Nil” value must be passed under the mandatory field if you don’t want to add value to the same.
Create an invoice with all valid data. The above heading(^) will show all the valid details to be added to the invoice.
Now, click on Generate IRN. This request is now sent to the IRP directly via Refrens software.
Once the invoice is authorized by the IRP system, the invoice is assigned a unique IRN with a digital signature QR Code. This is termed an e-Invoice.
IRP, known as Invoice Registration Portal is an instrument used to assign the unique IRN (Invoice Reference Number) to the GST invoice, debit note, and credit note.
IRN (Invoice Reference Number), also known as the hash is a unique number assigned to GST invoice, debit note, and credit note under the e-Invoicing system. It helps the government to identify the e-Invoice generated in India.
GSP (GST Suvidha Provider) acts as a middleman between the GST portal and taxpayers. They help taxpayers to access the GST portal using API under the e-Invoicing software.
No, it is not possible. For every e-Invoice, there is only one unique IRN generated.
After creating an invoice, you have to submit the invoice to the IRP system which then validates the invoice and authorizes it by assigning them a unique IRN and QR code. Here, IRP assigns a QR Code to the invoice on the basis of the selected information of invoice, IRN, and its generation date. IRP, a government-regulated portal assigns the QR Code to the invoice hence, it adds authenticity to the invoice.
An e-Invoice can be generated from any software which provides an e-Invoicing solution. You should be able to create invoices easily, generate IRN without any hassle. You should go for the option of printing the IRN and QR Code on the invoice and the same should be visible in your GSTR 1 report.
Refrens is a complete solution for billing and e-Invoicing system. You can create invoices for free of cost. One-click to “Generate IRN”. Easy to download and print on the invoice. Refrens also provide essential reports like GSTR1 for filing the taxes.