Invoice Reference Number (IRN) in e-Way bill system

GST brings transparency and develops mutual trust between the Revenue and the taxpayers. Most of the compliance process- return filing, registration, and sometimes even proceedings intend to happen without meeting a tax officer in person! Let us now focus on one of GST’s new tools to achieve its objective-an Invoice Reference Number(IRN).

Latest Update

4th April, 2025

With effect from June 1, 2025, IRP will treat invoice numbers as case-insensitive for IRN generation. All invoice numbers in any format will be converted to uppercase to avoid duplication and ensure consistency.

How does IRN Help?

Under normal circumstances, three sets of invoices are issued as follows:

• Original for the buyer
• Duplicate for the transporter
• Triplicate for the seller

Instead of the above paperwork, a transporter may opt for IRN as it digitizes the revenue process at the check posts. It reduces the waiting time for the transporter at the revenue check post and helps taxing authorities keep track of the goods being transported. There is no risk of losing an invoice if an IRN is generated.

What is an Invoice Reference Number (IRN)?

An IRN is a number that a GST-registered taxpayer may generate from the e-way bill portal by uploading an invoice in Form GST INV- 01. This will be valid for a period of 30 days and can be used instead of a physical tax invoice. Hence, IRN is a boon for transporters who transport multiple consignments, where otherwise, the documentation would have been burdensome.

IRN tries to ease the process of documentation to a great level. IRN also serves a dual purpose where a taxpayer can get Part A of his E-way bill auto-populated on generating it.

The Detailed Format of the form to Obtain IRN

Let’s now understand what the GST INV-1 looks like and what are the different details that must be filled in it. Let us group the form into four parts for a better understanding.

Part A

Form GST INV-1 is like any other form under the GST Law and begins with the basic details of the taxpayer/ supplier. The following are the contents of Part-A: 

• GSTIN and the supplier’s name are auto-populated.
• The address of the registered or principal place of business needs to be entered.
• Enter the Serial number and the date of the invoice.
   

Part B

Part B section requires the taxpayer to fill in details about the recipient. The following details need to be entered:

• GSTIN (for registered taxpayers) or UIN (for embassies/UN organizations).
• Recipient and consignee names.
• The address and state code of the recipient and consignee (the state code is the first two digits of the GSTIN, e.g., Karnataka = 29).
• If both parties and the delivery address are the same, the consignee's details are typically the same as the recipient's. However, different GSTINs may apply if the recipient and consignee are distinct or if goods are delivered to a third party or job worker, especially in cases of interstate shipments or factory deliveries.
   

Part C

Part C consists of details of the type of supply that the taxpayer is making. Regarding the transaction, whether the supply is a B to B supply( Business to Business) or a B to C supply( Business to customer) must be declared.

Part D

Part D consists of all information related to the consignment of goods billed. It includes the following:

• Enter the goods description and HSN code.
• Add quantity and unit price to calculate the taxable amount.
• Depending on whether it's an inter-state or intra-state transaction, calculate CGST, SGST, or UTGST.
• Mention freight, insurance, and packing/forwarding charges in the Tax Invoice. Upload the details to the e-way bill portal to generate an IRN for future use by the taxpayer and transporter.

Implementation Status

The Invoice Reference Number (IRN) system is now fully operational and applicable to businesses with varying turnover thresholds. Below is the complete timeline of key milestones from the inception to the current status: