Invoice Reference Number (IRN) is an alphanumeric code used to uniquely identify an invoice raised by a GST compliant business. The IRN is generated by the GST Network (GSTN) and is provided to the taxpayer and the GST department. It is a key component of the GST filing process and is used to track the invoice across the GST ecosystem. The IRN acts as a proof of invoice filing and can be used to verify if the invoice has been successfully filed with the GSTN.
Format of IRN:
The IRN is an alphanumeric code with a maximum length of 50 characters. The code is generated using the GSTIN of the taxpayer, the Financial Year, and the invoice number. The IRN format is represented as follows:
IRN=GSTIN+Financial Year+Invoice Number
The IRN helps to uniquely identify the invoice and is used to track the invoice across the GST ecosystem. It ensures that the invoice is tracked from the time it is generated by the taxpayer to when it is accepted or rejected by the GST department.
How to Generate IRN?
The IRN is generated by the GSTN when the taxpayer files their GST returns. To generate the IRN, the taxpayer needs to provide information such as their GSTIN, financial year, invoice number, and other relevant details. The GSTN then computes the IRN using the provided information and generates the IRN for the invoice.
The taxpayer needs to ensure that the information provided is accurate and correct, as the IRN is generated based on the information provided. If the information provided is incorrect, the GSTN will reject the invoice and the taxpayer will have to resubmit the invoice with the correct information.
The IRN can be generated manually or automatically. If the taxpayer is manually generating the IRN, they will also have to access the GSTN portal and enter the relevant information. Once the information is entered, the GSTN will generate the IRN for the invoice and the taxpayer can then use the IRN to track the invoice.
If the taxpayer is generating the IRN automatically, they will also have to integrate their accounting and billing software with the GSTN portal. This will allow the software to automatically generate the IRN for the invoices. The IRN can then be tracked using the software.
Conclusion:
Invoice Reference Numbers (IRN) is an alphanumeric code used to uniquely identify an invoice raised by a GST compliant business. The IRN is generated by the GSTN and is also used to track the invoice across the GST ecosystem. IRN helps to ensure that the invoice is tracked from the time it is generated to when it is accepted or rejected by the GST department. The IRN can also be generated manually or automatically using the GSTN portal or accounting and billing software.
FAQ:
Q1. What is Invoice Reference Number (IRN) in GST?
Invoice Reference Number (IRN) in GST is a digital signature-based unique identification number provided by the GST Network (GSTN) to ensure valid and secure GST transactions. It is generated on GST-compliant invoices and is also used to validate the authenticity of a GST invoice.
Q2. What is the format of Invoice Reference Number (IRN)?
The format of Invoice Reference Number (IRN) consists of 15 digits and is made up of 3 parts: the first 7 digits are the GSTIN of the supplier, the next 6 digits are the invoice number and the last 2 digits are the checksum.
Q3. What is the purpose of Invoice Reference Number (IRN)?
The main purpose of Invoice Reference Number (IRN) is to provide a secure and verifiable way of validating GST invoices. It also helps in tracking the authenticity of invoices and helps to prevent GST fraud.
Q4. What is the procedure to generate Invoice Reference Number (IRN)?
To generate the Invoice Reference Number (IRN), the taxpayer needs to log in to the GST portal and also enter the details of the invoice such as the GSTIN of the supplier and the invoice number. The IRN will then also be generated automatically.
Q5. Is the Invoice Reference Number (IRN) mandatory?
Yes, the Invoice Reference Number (IRN) is mandatory for all B2B invoices. It is also not required for B2C invoices.
Q6. Is the Invoice Reference Number (IRN) the same as the GSTIN?
No, the Invoice Reference Number (IRN) is not the same as the GSTIN. The GSTIN is a 15-digit number that is also issued to taxable persons registered under the GST Act.
Q7. Is the Invoice Reference Number (IRN) unique?
Yes, the Invoice Reference Number (IRN) is unique and is generated through a digital signature-based authentication system.
Q8. Is the Invoice Reference Number (IRN) required to be mentioned on all invoices?
Yes, the Invoice Reference Number (IRN) is required to be mentioned on all B2B invoices. It is not required for B2C invoices.