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The new GST regime has made life simpler and more organized for taxpayers in many ways. At the same time, the new administration has made the task of accountants or account managers challenging. As they are the ones responsible for overseeing all accounting processes on a daily basis. The new tax rules require a slew of chores and a multitude of tasks, including bookkeeping, GST returns, e-invoice generation, GST reconciliation etc.
All these may appear burdensome to account managers, but there are some specific, reliable, and effective solutions that can not only complete all the necessary groundwork but are also entirely GST-compliant to make their lives easier accountants.
Account management solutions to ease the burden
Account managers are responsible for ensuring that all GST returns are submitted accurately, and they must verify all information before submitting. To give clients correct advice and remain clear of any legal entanglements or penalties, they must keep up with the most recent GST rules and regulations and maintain proper documentation.
All these tasks can easily be managed by modern accounting solutions which maintain all the records of purchases, sales, and inventories, and can simply handle all these jobs with ease. These technologies, which offer real-time information and produce customizable bills, can be used by accountants to lessen their workload. These programs can manage purchases and sales and handle all bank-related transactions.
E-invoicing and unique IRN
Many of the basic GST complexities that an account manager must deal with include e-invoicing and the creation of invoice reference numbers (IRN). According to the e-invoicing mandate, all companies with yearly revenue of more than Rs 10 crore are required to create electronic invoices, which must then be electronically transmitted to a GST Authorized Invoice Registration Portal like IRIS IRP. The threshold for generating an e-invoice for B2B transactions has been reduced from Rs 10 crores to Rs 5 crores, starting August 1, 2023.
That means the task of the GST account manager would increase further, as after successful authentication, a unique invoice reference number is generated for each invoice by the IRP (Invoice Registration Portal). All these tasks are performed by the account managers, who oversee the process to maintain compliance.
E-invoicing system’s workflow
E-invoicing under GST facilitates standardization and interoperability. Let us first understand the basics of e-invoice generation. This process must be adhered to by all applicable GST-registered businesses as per the standard format notified by the Central Board of Indirect Taxes and Customs (CBIC).
Their reporting must be done per the e-invoice schema and mandatory parameters.
Sellers’ accounting software must be capable of creating a JSON file, be connected to a utility, and be used to interact with the accounting/billing system, or ERP. Also, there must be an offline tool to generate e-invoices by keying-in invoice data.
The second step of the e-invoicing system’s workflow is the generation of a 64-character unique IRN, either through an offline tool or by using an API through GSP integration.
The next step is the generation of QR codes. The IRP system, after the generation of the IRN, digitally signs the e-invoice and generates the QR code. The QR codes, which include all the vital information of the supplier and the recipient, make the validation of e-invoices easier through any handheld device.
IRP and IRN
IRP (Invoice Registration Portal) validates the authenticity of the invoices used in the GST ecosystem. The portal acts as a registrar and helps in generating invoices by allotting invoice reference numbers (IRN) and QR codes. The key functions of the portal include:
- Generation of hash algorithm unique code
- Verification and digital signature of the approved invoices
- QR code generation and e-mailing of invoices
- Integration of GST and E-way bill framework
The IRP generates the IRN. It is basically a hash computed by IRP, which is a must for every invoice issued by the supplier to its recipient. It needs to be digitally signed, as a GST invoice will be valid only with a valid IRN.
The tax officers can verify the genuineness of the transaction using IRN through the GST portal as well as through the offline app.
Common errors to avoid
There are certain pitfalls that an account manager should avoid while generating an e-invoice and reporting to IRP, as there are significant chances of errors. The government has listed out the common error messages that taxpayers may receive if an erroneous entry is made and has also suggested resolutions for them. An account manager should be prepared to deal with all these issues promptly.
These are some of the error codes and error messages that ensue from the portal:
| Error Code | Error Message | Reason | Resolution |
| 2150 | Duplicate IRN | Attempting to register a document again which is already registered and IRN is generated | Don't fire the same request simultaneously. This results in one request giving the error as 'Duplicate IRN request'. Best way to avoid firing of IRN request repeatedly for the same request, is update in your system with IRN number when the response comes back. Next time check the IRN, if it is not there, then fire for IRN. |
| 2172 | For intra state transaction IGST amounts is not applicable for item - {0} and Sl. No {1} , only CGST and SGST amounts are applicable. | IGST amount is being passed for Intra State transaction where as CGST and SGST are applicable. | Please check the applicable taxes for current transaction. If the State code of Point of Supply (POS) of recipient is same is state code of Supplier, then CSGT and SGST applies. However, under exception circumstances as per rule if IGST is applicable for intrastate transaction, then pass the ‘IGST_on_IntraState_Supply’ flag as ‘Y’ with IGST value so that system can process your request. |
| 2176 | Invalid HSN code(s)-{0} | Wrong HSN code is being passed | Pl check the HSN code being passed and Cross-check the correctness of HSN code on e-invoice portal. Still, if you feel it is correct, then please send the details to the helpdesk for verification at e-invoice system side. |
| 2182 | The taxable value of all items must be equal to the total taxable value. | Sum of taxable amounts of all items should be equal to invoice level taxable amount. | Please check the request payload for the taxable value validation. Total Taxable Value = Taxable value of all line items |
| 2189 | Invalid total Invoice Value | Invoice level total value has not been calculated as per the passed values. | Invoice level total value is equal to totals of all the total item value plus other charges minus discount with tolerance limit of +/- One. Pl refer to the validations in sandbox portal. |
| 2193 | AssAmt value should be equal to (TotAmt - Discount) for HSN - {0} and Sl. No {1} | Incorrect assessable amount is passed for the specified item. | For the specific item, assessable amount should be arrived at by deducting discount from total amount |
| 2194 | Invalid total item value for HSN - {0} and Sl. No {1}. | Total item value passed is incorrect. | Total item value should be sum of assessable value, all tax and cess values, other charges with tolerance limit of +/- One. Please refer to the validations in the portal. |
| 2211 | Supplier and recipient GSTIN should not be the same. | Same GSTIN has been passed for Supplier and Buyer GSTIN. | Self generated Invoice are not allowed for e-invoice generation. |
| 2212 | The recipient GSTIN cannot be URP for supply type {0}. | Un Registered Person (URP) is passed wrongly for B2B type of transaction. | For this type of transaction, actual GSTIN needs to be passed |
| 2227 | SGST and CGST Amounts should be equal for HSN - {0} and Sl. No {1} | For the specified item, CGST and SGST amounts are not equal | CGST and SGST amounts should be same for the specified item. |
| 2233 | Duplicate SI nos are not allowed in items. | Duplicate serial number for the items has been sent in the item list. | The serial number of the items in the item list should be unique in an invoice. |
Things to look for in your e-invoicing solution
For a GST account manager, a seamless e-invoicing solution is a must, and hence, before selecting one, a few things must be considered:
- Capability to generate e-invoices instantly-The e-invoicing solution must be capable of generating e-invoices instantly, as it is the primary requirement of the software. It can send the details directly to the IRP in the prescribed format. It should further download the authentic statement and automatically prints the QR code, IRN, etc.
- Bulk invoice generation feature -The next key requirement of an e-invoice solution for the business is bulk e-invoice generation and cancellation capability, as in a fast-paced world, no one can wait to generate e-invoices.
- An integrated solution - The e-invoice software must provide a comprehensive solution. It should be an integrated solution that includes GST return filing and e-way bill generation.
- Reliable and uninterrupted services - The software must provide a holistic style for error handling and be reliable. The solution should have near-zero downtime for uninterrupted e-invoice generation.
- Have the feature of invoice cancellation - The use of the software becomes crucial when there is a case of duplicate data entry, mistakes, or the need to cancel the order. The software should be aptly equipped to handle all these scenarios and can automatically send the details to IRP for cancellation of the IRN if cancellation is required.
- Data security-The most important factor that needs to be considered while selecting an e-invoicing solution is data security. The software should provide two-factor authentication and have an advanced user access management facility.
Conclusion
To sum up, it can be said that, though the introduction of GST has increased the workload of accountants, they are the ones going to benefit immensely from this regime. There has been an increase in clientele, with accountants playing a major role in making GST a reality. The scope of work has increased enormously, both advisory and compliance related.
IRIS IRP is the Govt. recognized Invoice Registration Portal (IRP) for businesses to prepare invoices
With IRIS IRP, we offer an end-to-end solution for e-invoice management and beyond
How to Connect?
- Generate e-invoices one-by-one or in bulk
- Use Excel Utility for on-premise solution requirements
- Upload batch data on cloud application for segregated teams
- Integrate IRP APIs with your ERP to get on-the fly IRNs
What do you get?
- Expertise - We have a team of domain and tech experts
- 100% Data Confidentiality
- 99.9% Up-time
- Smooth and Efficient IRN generation
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IRIS IRP is the Govt. authorized Invoice Registration Portal (IRP) for businesses like yours to prepare e-invoices. Schedule a free call with us and start generating IRN promptly