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How to Generate E-invoices in the GST Portal

This is the ultimate guide to generating e-invoices in the GST portal. You can state the entire process In a capsule form as:

Invoice Creation >> IRN Generation >> Invoice Uploading>> Authentication and Signing >> Data Sharing >> Downloading of E-invoices.

Invoice Creation

If you wish to generate e-invoices in the GST portal, the first step is the creation of the invoices.

You require your suppliers to generate invoices regularly as a business or a seller. Therefore, they must complete e-invoice reporting by adhering to a format, a proper procedure and implementing mandatory conditions.

The required fields are

  • Transaction specifics
  • Buyer’s details, including state code, pin code, location, address, GSTIN, account number, IFSC code, payment mode, and so on.
  • Supplier’s details, including a supplier’s address, GSTIN, and other information
  • Item list information, including quantity, GST rate, SI no., rate, assessable value, total invoice value, CGST/IGST/SGST amount, batch name/number, and so on.
  • Document specifications
  • Value details

As the next step in generating e-invoices in the GST portal, your supplier must create an e-invoice in the prescribed format using billing or accounting software. Furthermore, the software must be able to generate a JSON of the final invoice using the following modes:

  • This service’s billing and accounting system
  • An offline tool.

After creating the JSON file, the software will upload the file to IRP.

IRN Generation

The seller would then use a standard hash-generation algorithm to generate a unique Invoice Reference Number (IRN). IRN is generated based on four parameters:

  • Seller’s GSTIN
  • Invoice number
  • Fiscal year (YYYY-YY)
  • Document type (INV/DN/CN)

If the seller generated the IRN, the supplier would first have the option to create a ‘hash’ by considering critical parameters such as the supplier’s invoice number, GSTIN, and fiscal year. After this hash is validated, it becomes the IRN of the e-invoice.

It is optional for suppliers to generate IRN. In cases where they don’t, IRP will do it for them. In both cases, the IRP Portal will perform a duplication check to ensure this IRN is unique.

 

Invoice Upload

Now, the seller would upload JSON for each invoice and IRN to the Invoice Registration Portal, either through third-party software or through a GST Suvidha Provider.

Authentication and Signature

If the supplier has not yet uploaded an IRN, IRP will either validate the hash/IRN attached with JSON or create one.

Then, IRP authenticates the file against GST’s central registry.

Following successful verification, IRP will update the invoice with IRP’s digital signature on the invoice data and add a QR code for the supplier to the JSON file. On the other hand, IRP will notify the supply seller of the e-invoicing via email (if provided in the invoice) after the e-invoice generation.

The previously generated hash will be the new IRN of the E-invoice. Therefore, the e- invoice’s unique identity will be for the entire fiscal year.

Download of E-invoices

The e-invoicing portal will return the digitally-signed JSON to you, along with the IRN and QR code. And send the invoice to your buyer’s registered email address.

Thus, generating e-invoices in the GST portal resolves and plugs your significant gap in data reconciliation by reducing mismatch errors. In addition, the interoperability of the e-invoices helps minimise data entry errors.

Furthermore, the real-time reporting of invoices on the e-invoice Portal reduces the chances of manipulation to avoid the tax and facilitates auto reporting of invoice details in GSTR-1 of the supplier and GSTR-2A of the recipient.

Read more about GST e-Invoicing