Guide to Generate e-invoice and IRN from GST Portal

The most oftenly asked question by taxpayers “how to generate e-invoice from GST portal…?”. Some might think it’s a simple process of generating invoices electronically through the GST portal. But that’s not what it is…? Generating e-invoice is the way of validation of all of your invoices in standard structure (given by CBIC) generated for B2B/B2G exporters.?

Before going through the complete process to generate e-invoice let’s understand “what GST E-invoice is and it benefits…???

What is GST E-Invoice??

E-invoice is a mechanism by which the GST Network electronically validates all B2B invoices, not an invoice that you can download or create using the GST Portal (GSTN). Direct e-invoice generation from the common site is not practical.

To make sure the invoices produced by your accounting software are legitimate and may be used for procedures like creating e-way bills and completing GST returns, e-invoicing or authentication is necessary. In order to have them checked uniformly, the process entails submitting business invoices made using various accounting software to the GST Portal.

The programme cannot fetch all of the invoices straight to the GST system since the forms of the invoices produced by various GST return filing software may vary. As a result, the government made the decision to adopt a standard format (Schema), which mandates that all accounting software adhere to a consistent structure before being submitted to the GST portal for authentication and validation.

How is generating GST E-Invoice beneficial?

Generating e-invoices through the GSTIN portal offers a lot of benefits to exporters and more specifically to the small business owners. Let’s discuss about it;?

• E-invoice can be further used for creating e-way bills.?
• E-invoicing provides automatic reconciliation to consumers for exporters.?
• E-invoices can be created for Debit/Credit Notes, Invoices, and other eligible documents.
• Time Saving- Electrical invoicing saves a lot of time by cutting the extra steps from the offline process. Having a standard structure also saves time in fetching all the data in a single time.
• Reduce Costs- Online process saves the cost of paper and postal fees that will automatically reduce cost, after learning or following these simple steps will also reduce the cost e-invoicing.?
• Easy and followable process in similar structure- Having a followable structure in steps in a similar way makes it very easier than paper work.?
• Easier to keep track of invoices- E-invoicing maintains all of your data and keeps the track of every invoice generated with this process for a longer time.?

Step-by-step guide to generate e-invoice

Creating the invoice on taxpayers ERP

Using his or her billing or accounting software, the seller or supplier will generate an invoice in the required format (e-invoice schema). It must provide the necessary information.

For each B2B invoice, the supplier's accounting programme will produce a JSON file. We'll upload the JSON file to the IRP.

Generation of the unique IRN

The seller would then use a typical hash-generation process to create a distinct Invoice Reference Number (IRN).

Generation of the QR Code

The seller will now upload JSON for each of the invoices as well as IRN to the Invoice Registration Portal, either directly or through third-party software.

Back-end processing of a valid e-invoice

If an IRN hasn't previously been uploaded by the provider, IRP will produce one or check the hash/IRN attached with JSON.

The legitimacy of the file will subsequently be verified against the GST central registry.

After successful verification, it will add a QR code to JSON and its signature to the invoice.

The previously created hash will serve as the new E-IRN. invoice's It will serve as that e-exclusive invoice's identifier for the duration of the fiscal year.

Sharing of Data?

The uploaded information will be accessible to both the E-way bill and GST systems.

E-invoice Downloading?

The digitally signed JSON, IRN, and QR code will be sent back to the seller through the portal in a return message.

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