What is Invoice Reference Number (IRN)
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The Invoice Registration Portal (IRP) using a hash generation algorithm, under the new e-invoicing system will generate a unique number for each document such as an invoice or debit or credit note submitted on GST Portal or e-way bill portal then this generated unique number or hash will become the IRN (Invoice Reference Number) of the e-invoice.
This shall be unique to each invoice and hence be the unique identifier for each invoice for the entire financial year in the entire GST System for a taxpayer. And the GST Systems will create a central registry where hash sent by all IRPs will be kept to ensure the uniqueness of the same.
You can generate the unique Invoice Reference Number (IRN) (in technical terms hash of 3 parameters using a standard and well-known hash generation algorithm e.g. SHA256). This is an optional step, The seller can also generate this and upload it along with invoice data. The 3 parameters which will be used to generate IRN (hash) are:
A hash generation algorithm is a function that converts a message or a string consisting of characters (alphabets + numbers + certain special characters) into a series of numbers such that the resulting numbers cannot indicate the original message.
Yes, there will be one more API, released shortly, to generate the e-way bill based on IRN and Part-B details.
Presently, the taxpayers who have been notified. That is, taxpayers whose turnover is more than Rs 500 Crores and registered GSPs can generate IRN only.
The IRN (hash) will be generated by the GST System using GSTIN of supplier or document creator, financial year and the unique serial number of the document/invoice. The IRN can also be generated by the seller.
The serial number of invoices will be unique for a GSTIN for a Fin Year and the same has to be captured by the Supplier’s ERP.
Then the supplier has to keep the IRN against each of its invoices. It will be advisable to keep the same in the ERP as an invoice without IRN will not be a legal document.
An Accountant, GSTP, GST blogger, Website Creator, SEO Builder & Co-founder of the website https://gstportalindia.in for the help of GST Taxpayers of India. Having a perfect accounting experience of more than 10 years in a Private Ltd Company.
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Hi Mayur, Thanks for information, I have one quention you have mentioned 2 lines for IRN generation algo. Which one algorithm is used.
Invoice Reference Number (IRN) (in technical terms hash of 3 parameters using a standard and well-known hash generation algorithm e.g. SHA256)
IRN is generated using the computer algorithm (RSA256)