What is the IRP in India's e-invoicing system?
The IRP (Invoice Registration Portal) is the GST system's e-invoicing portal operated by the GSTN (Goods and Services Tax Network) in India. Businesses above the applicable turnover threshold must upload their invoices to an IRP, which validates the data, generates a unique IRN (Invoice Reference Number), digitally signs the invoice, and returns a QR code. The IRP-validated invoice is the legally compliant document.
How does the IRP e-invoicing process work?
IRP process: (1) Supplier's ERP or billing system generates invoice data in the prescribed JSON schema; (2) Supplier submits to the IRP (multiple IRPs exist including NIC's e-invoice portal, accredited private IRPs); (3) IRP validates GSTIN, invoice data format, and deduplication; (4) IRP generates IRN (SHA-256 hash of GSTIN + invoice number + financial year + document type); (5) IRP digitally signs the invoice and generates a QR code; (6) Signed JSON with IRN and QR code returned to the supplier; (7) Supplier embeds QR code on the printed/PDF invoice sent to buyer.
Frequently Asked Questions
- What is the IRN and how is it calculated?
- The IRN (Invoice Reference Number) is a unique 64-character hash generated by the IRP for each e-invoice. It is computed as a SHA-256 hash of four parameters: the supplier's GSTIN, the invoice number, the financial year (e.g., 2024-25), and the document type (INV for invoice, CRN for credit note, DBN for debit note). The IRN ensures uniqueness and prevents duplicate invoice registration.
- Which businesses must comply with India's e-invoicing mandate?
- India's e-invoicing mandate applies to GST-registered businesses above the notified turnover threshold. The threshold has been progressively reduced: initially INR 500 crore (2020), then INR 100 crore, 50 crore, 20 crore, 10 crore, and 5 crore. As of 2023, businesses with aggregate turnover above INR 5 crore in any preceding financial year must comply. Further reductions in the threshold are expected.
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