The Importance of Invoice Reference Number
in E-way Bill System
E-way bill deferred to ease the transportation of goods under a unified system is widely embraced by the taxpayers, who are willing to generate it online through the portal, enjoying the portal simplified features to do the task effortlessly.
But, how do they get the tedious task done so easily? Thanks to one of the GST’s new tool, that helps to achieve its goal. The tool is called as Invoice Reference Number (IRN). Let’s take a walk through this new term:
Invoice Reference Number
The Invoice Reference Number can be obtained electronically by a registered taxable person from the GST Common Portal. To do so it is required to upload a tax invoice issued by the taxpayer in Form GST INV- 01. The IRN shall be valid for a period of 30 days from the date of uploading.
Utilization of IRN
Usually, 3 sets of invoices are issued:
- Original is for the buyer
- Duplicate is for the transporter
- Triplicate is for the seller
Now, where does the IRN makes the task easy?
To digitize the revenue process at the check posts, instead of all the above paperwork, a transporter can use IRN only. The risk of losing an invoice is eliminated, when IRN is generated.
Likewise, a good amount of time is wasted at the state borders while validating documents regarding inter-state movements of goods. The problem gets coupled when every individual has its own format of permits, waybills and declaration forms. Here, the IRN comes to the rescue of such transporters, who dare to spread their wings wide, beyond their home state.
With so many balls to juggle, can this robust tool really help? And up to what extent? Find some of the unknown diverse benefits of the IRN:
- It is a boon for the transporters, transporting multiple consignments, as it cuts the time and dealing with the burdensome documentation is not needed.
- The human intervention in documentation is also reduced, ultimately leading to the abolition of tax evasion and corruption.
- Serves the dual purpose as, on generating it, Part A of the E-way bill will get auto-populated.
- This accompanies all consignments and is valid across the nation.
- Cuts off the transporters waiting time.
Unfortunately, despite all these lucrative easy wins, IRN lies on the darker side and puts a question mark on its existence!
Till today, the execution of IRN is deterred and the taxpayers are still skeptical about its fruition. The generation of e-way bills in the trial phase probably signifies the fact that, at least businesses and transporters have started seeing the brighter side, hence soon they need to be equipped to handle IRN as well. Only after implementing it, we can make the most out of it.