e-Invoicing: Glossary for Beginners

e-Invoicing means reporting details of specified GST documents to a Government-notified portal i.e., Invoice Registration Portal (IRP) and obtaining an Invoice Reference Number (IRN). It doesn’t mean the generation of invoices by a Government portal.

IRP (Invoice Registration Portal)

It is a government approved platform where notified persons upload or report invoices. Currently, six portals are authorised to generate IRN on reporting of invoices as per Rule 48(4) of the CGST Rules. Reporting invoices and generating Invoice Reference Numbers (IRN) on any of these portals is free of charge.

IRN (Invoice Reference Number)

The unique identifier for every invoice reported on an IRP. It is based on the computation of a hash of the supplier’s GSTIN, the financial year, the document type, and the document number.

AATO (Annual Aggregate Turnover)

AATO (Annual Aggregate Turnover) for e-Invoicing is calculated based on the PAN of a taxpayer and the information provided in their GSTR-3B returns. It represents the total turnover of the taxpayer during a financial year and is used to determine the applicability of e-Invoice reporting requirements.

Enablement

The process of registering and enabling a taxpayer for e-Invoicing on the GST portal, allowing them to report e-Invoices on any of the six IRPs. Taxpayers are automatically enabled for e-Invoicing based on AATO but if not enabled they need to be self-enabled on the portal (https://einvoice.gst.gov.in).

GSTIN (Goods and Services Tax Identification Number)

A unique identification number assigned to each registered taxpayer under the GST system.

GSTR-1

A monthly or quarterly return that taxpayers need to file, which contains details of outward supplies, including e-Invoice data.

Debit Note

A debit note is a document issued by a seller to notify the buyer of an increase in the quantity and/or value/taxes of a previously issued invoice. It serves as an instrument to adjust for errors, sales returns or any other similar circumstance.

Credit Note

A credit note, on the other hand, is issued by a seller to inform the buyer about a reduction in the quantity and / or value/taxes of a previously issued invoice. This decrease can occur due to factors like discounts, rebates, or overpayments etc.

e-Invoice QR Code

A type of two-dimensional barcode that can be read by a digital device and provides information about the invoice. The QR code generated for e-Invoicing includes parameters such as the supplier’s GSTIN, the recipient’s GSTIN, invoice number, date of generation of the invoice, invoice value, IRN, etc..

GSTN e-Services App

The mobile application designed to enhance the verification process for B2B e-invoices. It allows users to easily verify e-Invoices by scanning the QR code, providing key details of the invoice and the live status of the IRN, whether active or cancelled. The app also enables users to search for registered business details using GSTIN or PAN and view their return filing history, and the return filing status of the business.

e-Invoice FO (Front Office) Portal

The official web portal provided by GSTN where taxpayers can access various e-Invoice-related functionalities, including enablement status, e-Invoice generation, and searching for IRNs. It also provides links to all six IRPs, e-Invoice schema, master codes, enablement status, search IRN functionality, etc. (Link https://einvoice.gst.gov.in )

JSON Format

JSON (JavaScript Object Notation) is a standard data interchange format. For e-Invoicing, the invoice data must be uploaded in a predefined schema INV01 in JSON format.

API for e-Invoice Reporting

IRPs offer API-based functionality for reporting e-Invoices. API (Application Programming Interface) is a set of protocols for building and integrating software applications.

B2B Invoices

These are invoices issued in a business-to business transaction. e-Invoicing requirements in India currently apply to B2B invoices for certain taxpayers, based on their annual turnover.

ERP System

Enterprise Resource Planning (ERP) system is a type of software used by companies to manage their dayto-day business activities. Taxpayers can continue to generate invoices from their current ERP system, but details of all such B2B invoices need to be uploaded or reported on an Invoice Registration Portal (IRP) in a notified format.

OTP

One-Time Password (OTP) is a password that is valid for only one login session or transaction. During the registration process on an IRP, an OTP is sent to the registered mobile number for verification.

Auto-population

This refers to the automatic filling in of data in a field. In the context of e-Invoicing, once an e-Invoice has been validated and has received an IRN, the data from the e-Invoice is auto-populated into the supplier’s GSTR-1 form in the GST system.

e-Invoice schema

(INV-1 – Version 1.1) The e-Invoice schema is a predefined and standardised framework that defines the structure of the e-Invoice, including mandatory and optional fields, their format and rules for the generation of an e-Invoice.

Master codes

Master codes refer to a set of pre-defined codes used in the e-Invoicing system, such as HSN codes, country codes, currency codes, state codes, and others.

Signed e-Invoice

This refers to an e-Invoice that has been digitally signed by the Invoice Registration Portal (IRP) after validation. The signed e-invoice is provided with a unique IRN and QR code.

GST E-Invoice: Mandatory To Be Uploaded Within 30 Days w.e.f. April 2025 – Click Here

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