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E-Invoicing Under GST: Part 8 - Everything you need to know about Invoice Registration Portal

  • Feb 15, 2020 | Divita S Gupta

Latest update: The government introduced a new GST e-invoice scheme under which businesses with turnover of Rs 500 crore and above will generate all invoices on a centralised government portal starting October 1, 2020. Earlier, the turnover threshold for businesses was set at Rs 100 crore.

Now that e-invoicing has been introduced, those businesses willing to take up e-invoicing will need to know the workflow for getting their invoices electronically authenticated. A major instrument in this process is an IRP or Invoice Registration Portal. It generates and assigns an Invoice Registration Number or IRN to every GST invoice. This article outlines the functions and working of an IRP.

What is Invoice Registration Portal (IRP)?

An Invoice Registration Portal is an e-registrar that operates through a Government sanctioned website and assigns Invoice Reference Numbers (IRN) to each invoice/credit note/debit note. The invoice details can be uploaded onto the Invoice Registration Portal using a prescribed mode for the purpose of either generating or validating the Invoice Reference Number (IRN) of the invoice uploaded.

What are the functions of an IRP?

The IRP performs the following tasks:

1. Generation and validation of hash/IRN for invoices:

Once the invoice is generated by the seller using their own accounting or billing system, it needs to be uploaded to the invoice registration portal. The invoice can be generated using any software utility including those using Microsoft Excel or the Offline Utility provided by the GSTN.  The invoice must conform to the e-invoice schema that is published and adheres to the mandatory parameters. When an invoice is uploaded without a hash, the IRP will validate and generate a hash or IRN for that invoice.

2. De-duplication check:

The seller is required to upload the JSON of the e-invoice (along with the hash, if generated) into the IRP.  The JSON may be uploaded directly on the IRP or through GSPs or through third party provided Apps.  The IRP then conducts a check of the hash/IRN of an invoice for any duplication or repetition by comparing the same with information stored in the Central Depository.

3. Digital Signing of validated invoices:

All validated invoices are digitally signed by the Invoice Registration Portal using the private key of the IRP. This digitally signed JSON is then made available to the supplier as well as the vendor party for real time accessing.  One of the most significant benefits of integrating the e-invoicing system into your business operations is sharing the uploaded data with the GST and e-way bill system - this means no more multiple data entry.

4. Generation of QR codes in respect of validated invoices:

Finally, the system will return a digitally signed JSON with a unique Invoice reference number to the seller and a QR code. The registered invoice will also be sent to the seller and buyer on their email address as provided in the invoice. The following parameters will be available through the QR code:

  • GSTIN of supplier
  • GSTIN of recipient
  • Invoice number as given by supplier
  • Date of generation of invoice
  • Invoice value (taxable value and gross tax)
  • Number of line items
  • HSN Code of the main item (the line item having the highest taxable value)
  • Unique Invoice Reference Number (hash)

5. Sending the invoice via email:

The validated invoice will be sent to the email address of the buyer and the seller as mentioned in the invoice in a bid to facilitate real time accessing.

6. Offline app:

The IRP will provide an offline app to authenticate the QR code of an invoice offline and view its basic details. The complete details of the invoice would be available only after connecting to the portal.

7. Integration with GST and E-Way Bill system:

Once the invoice is uploaded to the IRP, it will be validated and a digitally signed e-invoice along with IRN will be returned by the IRP to the seller, the GST System and to the E-Way Bill System. Sellers will be required to adhere to the schema prescribed by the GSTN. The GST System will update the ANX-1 of the seller and ANX-2 of the buyer, which in turn will determine the taxpayer’s liability and Input Tax Credit. The E-Way bill system will create Part-A of the e-way bill using invoice data that was electronically authorised by the Invoice Registration Portal. This Part-A will be attached to Part-B of the e-way bill which will contain the vehicle number.

Direct Invoice Generation on IRP

Many people think that e-invoice will be generated from a centralized government tax portal. This is a myth. Taxpayers will be required to continue generating their own invoices using accounting or billing software, keeping in view the varied needs of the item master, buyer master, UQC etc. along with sub-second response from IR Portal (IRP). Thus, direct creation/generation of e-invoice from GST portal or any other government portal is not envisaged/planned.

How can you register for e-invoicing?

It's simple. The GST Network has provided eight free accounting/billing software that assist in generating an invoice as a JSON file. Here's how you can register your e-invoice.

  • Web based registration of e-invoice.
  • API based registration of e-invoice.
  • SMS based registration of e-invoice.
  • Mobile app-based registration of e-invoice.
  • Offline tool based registration of e-invoice.
  • GST Service Provider/ GST Suvidha Provider based registration of e-invoice.

To know more about our E-invoicing and GST compliance solutions, contact us here.

Follow our E-invoicing under GST Series on the links below:

  1. E-Invoicing Under GST: Part 1 - What is an e-invoice?
  2. E-Invoicing Under GST: Part 2 - E-invoicing and the Tax Department
  3. E-Invoicing Under GST: Part 3 - Benefits of e-invoicing
  4. E-Invoicing Under GST: Part 4 - Documents to be reported under e-invoicing
  5. E-Invoicing Under GST: Part 5 - How does e-invoicing work?
  6. E-Invoicing Under GST: Part 6 – E-Invoicing Workflow from Supplier to Invoice Registration Portal
  7. E-Invoicing Under GST: Part 7 - Workflow from IRP to Buyer and GSTN or E-Way Bill System
  8. E-Invoicing Under GST: Part 8 - Everything you need to know about Invoice Registration Portal
  9. E-Invoicing Under GST: Part 9 – Features of e-invoice system you need to know
  10. E-Invoicing Under GST: Part 10 – How to register your e-invoice
  11. E-Invoicing Under GST: Part 11 - Myths around e-invoicing
  12. E-Invoicing Under GST: Part 12 – Frequently asked questions on e-invoicing

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.