What is E-invoicing Under GST?
E-invoicing (electronic invoicing) is a system where B2B invoices are reported to the government's Invoice Registration Portal (IRP) in real time. The IRP validates the invoice and returns a unique Invoice Reference Number (IRN) and a QR code — both of which must appear on the final invoice issued to the buyer.
💡 Current E-invoicing Threshold (2026)
Mandatory for taxpayers with aggregate annual turnover exceeding ₹5 crore in any preceding financial year from FY 2017-18 onwards.
E-invoicing Threshold History
| Effective Date | Turnover Threshold |
|---|---|
| October 1, 2020 | ₹500 crore and above |
| January 1, 2021 | ₹100 crore and above |
| April 1, 2021 | ₹50 crore and above |
| April 1, 2022 | ₹20 crore and above |
| October 1, 2022 | ₹10 crore and above |
| August 1, 2023 | ₹5 crore and above (current) |
Who is Exempt from E-invoicing?
Even if turnover exceeds ₹5 crore, the following are exempt:
- Insurance companies, banks, financial institutions, NBFCs
- Goods Transport Agencies (GTA)
- Registered persons supplying passenger transportation services
- Multiplex cinema operators (for admission tickets)
- Special Economic Zone (SEZ) units (not developers)
- Government departments and local authorities
Which Documents Require IRN?
| Document Type | IRN Required? |
|---|---|
| B2B tax invoice | Yes |
| B2B credit note | Yes |
| B2B debit note | Yes |
| Export invoice | Yes |
| B2C invoice (unregistered buyer) | No |
| Bill of supply (exempt/composition) | No |
| Delivery challan | No |
E-invoicing Process — Step by Step
- Prepare invoice in your accounting software or billing system
- Upload to IRP — send invoice data in JSON format to einvoice1.gst.gov.in (or via API)
- IRP validates the invoice details and checks for duplicate IRN
- IRN generated — a unique 64-character hash code is returned
- QR code generated — IRP returns a signed QR code containing key invoice details
- Print on invoice — the IRN and QR code must appear on the final invoice issued to buyer
- Auto-populated in GSTR-1 — e-invoice data flows automatically into your GSTR-1
⚠️ Time Limit for Reporting
From May 1, 2023, taxpayers with turnover above ₹100 crore must report e-invoices within 7 days of the invoice date. For others above ₹5 crore, there is currently no strict time limit but prompt reporting is recommended.
Penalty for Not Generating E-invoice
Failure to generate IRN when required results in:
- Invoice treated as invalid — buyer cannot claim ITC
- Penalty of ₹10,000 per invoice under Section 122
- Penalty of 100% of tax due if intent to evade is established
- Department may disallow ITC to recipient — creating liability for your client
E-invoicing Portals (IRP)
The government has authorised multiple Invoice Registration Portals. The main ones are:
- NIC IRP: einvoice1.gst.gov.in (government portal)
- GSTN IRP: einvoice6.gst.gov.in
- Several private IRPs also authorised — check gst.gov.in for current list
Frequently Asked Questions
My turnover was ₹6 crore last year but ₹4 crore this year — must I generate e-invoices?
Yes. Once your turnover has exceeded ₹5 crore in any financial year from FY 2017-18 onwards, e-invoicing remains mandatory going forward — even if turnover falls below ₹5 crore in subsequent years.
I use Tally / Zoho Books — do they support e-invoicing?
Yes. Most major accounting software (Tally Prime, Zoho Books, QuickBooks, Busy, Marg) have built-in e-invoicing integration that automatically generates IRN and embeds the QR code on invoices.
Can I cancel an e-invoice?
Yes — but only within 24 hours of generation on the IRP. After 24 hours, cancellation on IRP is not possible. You must then issue a credit note instead.
Does e-invoicing apply to SEZ supplies?
Yes — supplies to SEZ units and SEZ developers (as recipients) require e-invoicing. However SEZ units themselves (as suppliers) are exempt from generating e-invoices.