Steps to Generate an e-Invoice
Back-end Processing of a Valid e-Invoice
FAQs on e-Invoice and IRN
Step 1 – Creation of the Invoice on the Taxpayer’s ERP
The first step involves creating the invoice in the taxpayer's ERP system, adhering to the e-invoice schema.
Ensure the invoice includes mandatory fields such as Supplier GSTIN, Document Type Code, and Document Date.
Use a sequential Document Number for unique identification.
Include details like Supplier Legal Name and Address as per PAN records.
Step 2 – Generation of the Unique IRN
The next step is generating the Invoice Reference Number (IRN) using the e-invoice portal.
Upload the invoice data to the Invoice Registration Portal (IRP).
The IRP validates the data and generates a unique IRN.
The IRN is a 64-character alphanumeric code.
Step 3 – Generation of the QR Code
Once the IRN is generated, the IRP also generates a QR code for the invoice.
The QR code contains vital invoice details like GSTIN, Invoice Number, and IRN.
It is digitally signed by the IRP.
Ensure the QR code is printed on the invoice for verification.
Validation by IRP
The IRP validates the invoice data against the GSTN records.
Checks for duplication and data consistency.
Converts invoice numbers to uppercase for uniformity.
Ensures compliance with the latest GST rules.
Transmission to GST System
Post-validation, the IRP transmits the invoice data to the GST system.
Updates the GSTN with the validated invoice details.
Facilitates auto-population in GSTR-1.
Ensures seamless integration with the GST ecosystem.
Storage and Retrieval
The validated e-invoice is stored for future reference and retrieval.
Stored securely in the GST system.
Accessible for audits and compliance checks.
Retrievable using the unique IRN.
What is an e-Invoice?
An e-Invoice is an electronically generated invoice that is reported to the GSTN for B2B, B2G, and export transactions. It includes a unique IRN and a QR code for verification.
Who is required to generate e-Invoices?
Businesses with an annual turnover exceeding ₹5 crore in any financial year from 2017-18 onwards must generate e-Invoices as per the latest GST notifications.
How is the IRN generated?
The IRN is generated by the Invoice Registration Portal (IRP) after validating the invoice data uploaded by the taxpayer. It is a 64-character alphanumeric code.
What information is included in the QR code?
The QR code includes details such as the Supplier GSTIN, Invoice Number, IRN, and the digital signature of the IRP. It is essential for invoice verification.
Can I generate an e-Invoice for B2C transactions?
No, e-Invoicing is currently applicable only for B2B, B2G, and export transactions. B2C transactions are not covered under the e-Invoicing mandate.
What happens if I fail to generate an e-Invoice?
Failure to generate an e-Invoice can lead to penalties under GST law and may result in non-compliance issues, affecting input tax credit claims.
Is there a deadline for reporting e-Invoices?
Yes, invoices must be reported to the IRP within 7 days from the date of issue, as per the latest GST advisory for businesses with a turnover of ₹100 crore or more.
Can I amend an e-Invoice once generated?
Amendments to e-Invoices are not allowed. Any changes must be made through a credit or debit note, which should also be reported to the IRP.
How do I ensure the authenticity of an e-Invoice?
The authenticity of an e-Invoice can be verified using the QR code, which contains the IRN and is digitally signed by the IRP.
What are the consequences of duplicate IRN generation?
Duplicate IRN generation is flagged by the IRP with error codes, and such invoices are not accepted. Ensure unique invoice numbers to avoid duplication.