E-invoicing is now mandatory for businesses with turnover above ₹5 crore. This guide explains what e-invoicing is, which businesses are covered, and the steps to generate a valid e-invoice.
What Is E-Invoicing Under GST?
E-invoicing (electronic invoicing) is a system where B2B invoices are authenticated electronically by the GST Network (GSTN) before being issued to buyers. The invoice gets a unique Invoice Reference Number (IRN) and a QR code.
Who Must Comply?
| Turnover Threshold | Applicable From |
|---|---|
| > ₹500 Crore | October 2020 |
| > ₹100 Crore | January 2021 |
| > ₹50 Crore | April 2021 |
| > ₹20 Crore | April 2022 |
| > ₹10 Crore | October 2022 |
| > ₹5 Crore | August 2023 |
Who Is Exempt?
- Insurance, banking, and financial institutions
- Goods transport agencies
- Passenger transport services
- SEZ units (for supplies from SEZ)
- Government departments
How to Generate an E-Invoice
- Prepare the invoice in your accounting/ERP software
- Upload JSON to the Invoice Registration Portal (IRP)
- Receive IRN — a unique hash generated by the IRP
- QR code is embedded in the invoice
- Share the authenticated invoice with your buyer
Benefits of E-Invoicing
- Auto-population of GSTR-1 — no manual data entry
- Faster ITC claims for buyers
- Reduced tax evasion and audit risk
- Easier reconciliation
Penalty for Non-Compliance
Invoices issued without IRN are invalid under GST law. ITC claimed by buyers on such invoices will be reversed. Penalty: ₹10,000 per invoice or 100% of tax due, whichever is higher.