e-Invoicing under GST

What is e-invoicing under GST?

e-Invoicing is a reporting system, not a new invoice type. You still issue a regular GST invoice to your buyer — but you must first register it on the government's Invoice Registration Portal (IRP). The IRP validates the data, assigns a unique Invoice Reference Number (IRN) and returns a digitally signed QR code that must be printed on the invoice.

The IRP also pushes the invoice data directly into your GSTR-1 and your buyer's GSTR-2B — eliminating data-entry errors and ITC mismatches.

e-Invoicing threshold — ₹5 crore (as of August 2023)

e-Invoicing is mandatory for businesses whose aggregate annual turnover exceeded the applicable threshold in any financial year from 2017-18. The limit has been reduced progressively:

Which documents require e-invoicing?

• B2B tax invoices (including exports and SEZ supplies)
• Credit notes
• Debit notes

B2C invoices do not require e-invoicing. For inter-state B2C supplies above ₹1 lakh, a Dynamic QR Code must be printed — but this is separate from the IRP-generated IRN.

Who is exempt from e-invoicing?

Even above ₹5 crore, these categories are exempt:

• Banks, financial institutions and NBFCs
• Insurance companies
• Goods Transport Agencies (GTAs) issuing consignment notes
• Passenger transport service providers
• Cinema/multiplex/exhibition admission services
• SEZ units (as supplier; SEZ developers are not exempt)
• Government departments for non-commercial purposes
• OIDAR service providers

How IRN and the QR code work

The IRN is a 64-character SHA-256 hash of four fields: Supplier GSTIN, Financial Year, Document Type (INV / CRN / DBN) and Document Number. The same invoice number can never produce a duplicate IRN — and any change to the invoice after IRN generation requires cancellation and re-generation within the 24-hour window.

The signed QR code contains: supplier and buyer GSTINs, IRN, invoice number, date, value, number of line items, main HSN code and digital signature. Anyone can verify by scanning with the GST e-invoice verification app.

End-to-end e-invoicing flow — 5 steps

1. Prepare the invoice JSON — in your billing software using the GSTN e-invoice schema: supplier/buyer GSTINs, HSN codes, GST rates, taxable values and tax amounts.
2. Upload to IRP — via REST API, bulk offline utility or your billing app's built-in e-invoicing integration (available at einvoice1.gst.gov.inand authorised private IRPs).
3. IRP validates — checks active GSTINs and valid HSN codes. Invalid invoices are rejected with an error code.
4. Receive IRN and QR code — on success: 64-character IRN, signed JSON and Base64-encoded QR code image. The IRP simultaneously sends data to GSTN for GSTR-1 auto-population.
5. Embed on invoice PDF — print the IRN and QR code on every copy. Within 24–48 hours the data appears in your GSTR-1 and buyer's GSTR-2B.

Cancellation and amendment rules

• Cancellation on IRP: allowed within 24 hours of IRN generation only.
• After 24 hours: issue a credit note; report via amendment tables in GSTR-1.
• You cannot amend invoice content after IRN is generated — generate a new IRN with a corrected invoice and a credit note against the original.

Penalties for e-invoicing non-compliance

• ₹10,000 per invoice under Section 122 CGST Act for issuing an invalid invoice.
• 2% of invoice value (up to ₹25,000) under Section 125 for general non-compliance.
• Buyer cannot claim ITC — a direct financial impact on your business relationship.

How billing apps automate e-invoicing

GST billing software integrated with the IRP API fetches the IRN automatically — you raise the invoice and the IRN and QR code are embedded in the PDF before it reaches the buyer. BillRaja generates GST-compliant invoices with the correct CGST/SGST/IGST split and HSN codes — the foundation for e-invoice-ready JSON. Use the GST invoice generator for a complete bill-to-PDF workflow.