The GST laws have evolved and have brought about transparency between the Taxpayers and the Department. With the help of technology, most of the compliance processes, including registrations, filing of returns, invoice validation, etc., are now facilitated in a faceless manner.
Taxpayers transporting goods valuing more than INR 50,000 have to generate an e-Way Bill to complete the transportation. Along with the e-Way Bill, the transporter is expected to carry a duplicate copy of the invoice. To help taxpayers and transporters reduce paperwork, the concept of IRN was introduced in the e-Way Bill system.
An IRN is a unique reference number allotted to an invoice. It can be obtained from the e-Way Bill portal by uploading the relevant invoice in Form GST INV- 01. This IRN is valid for a period of 30 days and can be used instead of a physical tax invoice (that is required to be carried along with the goods being transported).
With the Invoice Reference Number:
- The clearance time at check-posts is reduced (for transporters).
- Tax Authorities can track goods being transported digitally.
- Manual errors and instances leading to loss of invoice can be avoided.
- Documentation is reduced for transporters shipping multiple consignments.
- Part-A of an E-Way bill can be auto-populated.