Also called e-invoicing, IRN, Invoice Reference Number, IRP
An e-invoice is a normal tax invoice that is also reported to an Invoice Registration Portal (IRP). The portal checks it and returns an Invoice Reference Number (IRN) and a signed QR code, which must be printed on the invoice. The details then flow into the GST system automatically.
It is mandatory for B2B invoices, credit notes and debit notes when a business's aggregate turnover in any financial year since 2017-18 has crossed ₹5 crore. Sales to ordinary consumers do not need an IRN. An invoice that should have had one and did not is not treated as a valid invoice, so the buyer may lose input tax credit.
A distributor with ₹7 crore turnover bills a retailer ₹1,18,000 including GST. Before the goods leave, the invoice is uploaded, an IRN comes back and the QR code is printed. Without the IRN, the retailer could struggle to claim the input tax credit. Okount prepares e-invoice files ready to upload.