IRN stands for Invoice Reference Number in the GST system. It is a unique number generated for every e-invoice issued by businesses. The IRN ensures that each invoice is verified and recorded in the GST system for better transparency and compliance.
IRN Definition & Meaning
The Invoice Reference Number (IRN) is a 64-character unique number assigned to an e-invoice by the GST portal. When a business generates an invoice, it is uploaded to the Invoice Registration Portal (IRP), where the IRN is created. The IRN is generated using a combination of the taxpayer’s GSTIN, invoice number, and financial year.
Why IRN is Important in GST
The IRN is essential for businesses that issue e-invoices under GST. It ensures that invoices are properly recorded in the GST system, reducing the chances of fraud or errors. By using the IRN, businesses can streamline their tax processes, avoid duplication of invoices, and simplify GST compliance. Additionally, the IRN helps the government track invoices more efficiently, making the GST system more transparent and effective.
