We have discussed the process how to generate e invoice in gst portal and IRN separately in various articles. In this article, we will talk about the e invoicing process flow system from its starting point to know how to generate IRN in GST portal. The overall flow of e invoicing process (e invoice step by step process) can be divided into two major parts:
Step 1: Generation of Invoice The Business (seller) generates the invoice through their internal billing system, which could be any software including an excel sheet or any GSTN provided offline utility. Note:
Step 2: To know how to upload e invoice in GST portal Once the invoice is generated. How to generate IRN number, the Business/seller uploads/reports the invoice JSON to the IRP. Note:
Step 3: Generation of IRN The IRP will then generate an Invoice Reference Number (IRN) based on the seller’s GSTIN, Document Type, Document Number and Financial Year. This IRN generation portal will be a unique identity for the invoice. Note:
Step 4: Digital Signature and QR Code
Step 5: Invoice is sent back to the seller The digitally signed e-Invoice JSON is sent back to the seller along with the allocated QR code.
Step 6: Sharing of invoice data with other Government portals. The IRP will concurrently share the invoice data with the GST and e-Way bill System.
Step1: Sharing of invoice data with the GST System and E-Way Bill System The digitally signed e-Invoice and the IRN are shared with the GST system and the e-Way bill system automatically. This helps in auto-populating details in GST returns and e-Way bills.
Step 2: Auto-Population of data in GSTR-1 Once the GST System receives the required information from the IRP, it will automatically update the GSTR-1 of the concerned business/seller.
Step 3: Issue of e-Invoice to buyer On the other side, the business/seller can convert the digitally signed e-Invoice JSON into a PDF and share it with the buyer to complete the transaction. The allocated QR code has to be a part of the final invoice shared.
The Government is bracing up the system to bring more and more Taxpayers under the e-Invoicing bracket. The e-Invoicing mechanism will assist businesses to achieve a seamless and efficient flow of GST Output Tax and Input Tax Credit. Since all transactions will be validated and digitally signed by the IRP, tax authorities can keep track of the significant transactions and curb tax evasion as well.