Decoding E-Invoicing: A Comprehensive Glossary of E-Invoicing
Here's the glossary of e-invoicing terms
IRN (Invoice Reference Number): IRN is a unique identifier assigned to each invoice reported on an IRP. It's generated by hashing the supplier's GSTIN, financial year, document type, and document number.
Reference Number (IRN): It does not involve generating invoices through a government portal.
AATO (Annual Aggregate Turnover): AATO is calculated based on a taxpayer's PAN and the information in their GSTR-3B returns. It represents the total turnover during a financial year and determines e-Invoice reporting applicability.
Enablement: Enablement involves registering and activating a taxpayer for e-Invoicing on the GST portal, allowing them to report e-Invoices on any of the six IRPs. Taxpayers can be automatically enabled based on AATO or self-enable through the portal.
E-Invoice QR Code: An e-Invoice QR Code is a two-dimensional barcode containing invoice information. Parameters include GSTINs of the supplier and recipient, invoice number, generation date, value, IRN, etc.
GSTR-1: GSTR-1 is a monthly or quarterly return where taxpayers detail outward supplies, including e-Invoice data.
Credit Note: A Credit Note documents an increase in the value of a previously issued invoice and is typically issued by the seller.
Debit Note: A Debit Note records a decrease in the value of a previously issued invoice and is generally issued by the seller.
E-Invoice QR Code Verifier App: This app scans and validates QR codes on e-Invoices using digital devices.
GSTIN (Goods and Services Tax Identification Number): GSTIN is a distinct identification number allocated to registered taxpayers under the GST system.
E-Invoice FO (Front Office) Portal: The official GSTN web portal provides e-Invoice-related functions, including enablement status, generation, and IRN search. Links to IRPs, schema, codes, and more are also available.
JSON Format: JSON is a standard data format used to upload e-Invoice data in a predefined schema (INV01).
B2B Invoices: B2B invoices pertain to business-to-business transactions. E-invoicing requirements apply to certain taxpayers' B2B invoices based on their turnover.
API for e-Invoice Reporting: IRPs offer API-based e-Invoice reporting. APIs are protocols for integrating software applications.
ERP System: Enterprise Resource Planning (ERP) software manages daily business activities. While taxpayers can use their ERP for invoice generation, B2B invoice details must be reported on an IRP.
OTP: One-Time Password (OTP) is a single-session or transaction password. It's used during IRP registration for mobile number verification.
Auto-population: After validation and IRN allocation, e-Invoice data auto-populates into the supplier's GSTR-1 form.
E-Invoice schema: The structured framework (INV-1 - Version 1.1) defines e-Invoice structure, including mandatory and optional fields, format, and rules.
Master codes: Master codes are predefined codes like HSN, country, currency, and state codes used in the e-Invoicing system.
Signed e-Invoice: A digitally signed e-Invoice is validated by IRP, receives an IRN and QR code, and is provided a unique identity.
E-Invoice Schema: The standardized format in which the e-invoice data is structured for easy processing and exchange.
E-Invoice Template: A pre-designed format for e-invoices that includes mandatory fields and structured information.
XML: Extensible Markup Language, a format used to encode structured information in a machine-readable way.
Debalina Deb Roy
Experienced blog writer with a passion for storytelling and a knack for engaging readers. Adept at researching and creating captivating content across various topics, with a focus on providing valuable insights and a unique perspective. Proven track record of delivering high-quality articles that resonate with audiences.
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