Rajat Negi

Important notes on e-Invoice

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The GST registered individual can use the e-Invoice System to upload all B2B invoices to the Invoice Registration Portal (IRP). The IRP provides the user with a unique Invoice Reference Number (IRN), a digitally signed e-invoice, and a QR code.

Terminologies related to e-Invoice

  • QR Code: The QR code, often known as a quick response code, is an important feature of the e-Invoice. The IRP will assign a rapid response code to each invoice that is uploaded, and it will include.
    Supplier/taxpayer GSTIN The recipient’s GSTIN. Invoice number as entered into the ERP/accounting/billing software by the supplier/taxpayer. Invoice was created on this date. Value of the Invoice (taxable value and gross tax). The invoice’s total number of line items. HSN The main item’s code (the line item having the highest taxable value).


  • IRP: “Invoice Registration Portal” is the acronym for “Invoice Registration Portal.” This is the central location where the taxpayer must upload invoices. The IRP verifies the authenticity of the taxpayer’s GST invoices and assigns an IRN and QR code to each invoice that has been authenticated.


  • IRN: Invoice reference number is abbreviated as IRN. The Invoice Registration Portal (IRP) generates a unique invoice identification number using a hash generating algorithm. This IRN is a 64-character reference number that GSTIN assigns to each invoice it issues throughout a fiscal year.


  • E-Invoice Schema: It might be time-consuming to decode multiple invoices for different systems and stakeholders. The standard e-invoice in form INV-01 was created to make it easier for a taxpayer and a buyer to transmit invoice data in a consistent manner. A schema is a structured invoice template or format. In GST, the invoice received through the government portal that includes the IRN and OR Code is known as a “e-Invoice.” The taxpayer then distributes the QR code to the purchaser/recipient of the goods/services. The entire value of all taxable supplies, exempt studies, exports, and inter-state supplies made by a person with the same PAN on an all-India basis is referred to as aggregate turnover.


e-Invoice and its mechanism

The e-invoice procedure entails adhering to a defined protocol that allows taxpayers to make and read electronic invoices in a consistent manner. Through the government-assigned dynamic quick response (QR) code, any computer system may read the e-Invoice raised by the taxpayer. This method assigns an Invoice reference Number (IRN) and a QR code that serves as a unique identification for the invoice filed.

The Invoice Schema is the sole thing that the e-Invoicing system defines. This implies that taxpayers are not required to create or raise invoices on the IRP. Taxpayers are required to create invoices using their internal accounting/billing software or ERP as part of the system’s procedure. These invoices should be uploaded to the “Invoice Registration Portal” by taxpayers. The IRP will verify the invoice data and send back a digitally signed e-Invoice with a unique “Invoice Reference Number” IRN and QR code.

who should use e-Invoice

From 1 April 2021, taxpayers having an aggregate revenue of INR50-100 crores in any previous financial year must install this new invociing mechanism mandatorily. SEZ-units, including free trade and warehousing zones, insurance businesses, banking companies, and financial institutions are among the industries that are excluded from e-invoicing (including NBFCs).
Transportation companies that move items by road in a goods carriage. suppliers of passenger transportation services Admission at multiplex cinemas is paid for by taxpayers.

Procedures for E-Invoice

  1. Taxpayers should use their internal accounting system or ERP to create invoices that follow the e-Invoice model.
  2. They must upload the invoice that was generated to the Invoice Registration Portal. Taxpayers can use the Offline tools to upload invoices here.
  3. I received the signed electronic invoice, as well as the IRN and QR code.

Final Words

If an invoice that should have been registered on the IRP isn’t, it won’t be considered a legitimate tax invoice for all GST purposes. Non-issuance of an invoice carries a penalty of 100% of the tax owed or Rs.10,000 (whichever is greater) every occurrence of non-compliance. An incorrect invoice may result in a Rs.25,000 penalty. With real-time invoice manipulation reporting. Fake GST invoices are easily traceable.

I hope, I gave you some insights about e-Invoice and delivered it in the best possible way. 

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Rajat Negi

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