GST e-Invoicing — Applicability, Process & IRN
e-Invoicing requires notified GST taxpayers to report B2B invoices to a government portal and obtain an IRN and QR code before issuing them. Here's who it applies to and how it works.
e-Invoicing is a system in which B2B invoices are electronically authenticated by the Invoice Registration Portal (IRP), which returns a unique Invoice Reference Number (IRN) and a signed QR code. The invoice is only valid once it carries the IRN.
It applies to businesses above a turnover threshold and helps auto-populate GST returns and e-way bills, reducing errors and fake invoicing.
On this page
Who must generate e-invoices
e-Invoicing is mandatory for registered persons whose aggregate annual turnover exceeds ₹5 crore in any financial year from 2017-18 onwards (threshold reduced in stages from ₹500 cr to ₹5 cr). It applies to:
- B2B supplies (to other GST-registered persons)
- Exports
- Credit notes and debit notes
It does not apply to B2C invoices, or to exempt entities like banks, insurers, transporters (GTA), passenger transport and cinema operators.
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How e-invoicing works
- Create the invoice in your accounting/ERP/billing software in the required schema.
- Upload the invoice JSON to the IRP (Invoice Registration Portal).
- IRP validates it and returns a unique IRN and a digitally signed QR code.
- Print/issue the invoice with the IRN and QR code.
- Data flows automatically to GSTR-1 and the e-way bill system.
30-day reporting rule
Notified taxpayers (currently those with AATO of ₹10 crore and above) must report invoices to the IRP within 30 days of the invoice date; late reporting is rejected. Smaller taxpayers should still report promptly.
Benefits
- Auto-population of GSTR-1 and e-way bills — less manual entry
- Fewer mismatches and ITC disputes with customers
- Real-time tracking and reduced fake-invoice risk
- Faster, standardised B2B invoicing
Penalties for non-compliance
- An invoice without a valid IRN is not a valid tax invoice — the recipient may lose ITC.
- Penalty for non-issuance: 100% of tax due or ₹10,000, whichever is higher.
- Penalty for an incorrect invoice: ₹25,000.
Frequently Asked Questions
Who is required to generate GST e-invoices?
Registered taxpayers whose aggregate annual turnover exceeds ₹5 crore in any financial year since 2017-18 must generate e-invoices for B2B supplies, exports and credit/debit notes.
What is an IRN in e-invoicing?
The Invoice Reference Number is a unique number generated by the Invoice Registration Portal that authenticates each e-invoice; the invoice is valid only once it carries the IRN and QR code.
Is e-invoicing required for B2C invoices?
No. e-Invoicing applies to B2B supplies, exports and credit/debit notes. B2C invoices are excluded, though large taxpayers must show a dynamic QR code on B2C invoices separately.
What is the 30-day e-invoice reporting rule?
Taxpayers with turnover of ₹10 crore and above must report invoices to the IRP within 30 days of the invoice date; older invoices are rejected by the portal.
What happens if I don't generate an e-invoice?
The document isn't a valid tax invoice, your customer can lose input tax credit, and penalties apply — up to 100% of tax due or ₹10,000, whichever is higher.
Set up GST e-invoicing correctly
TAXAJ configures e-invoicing in your billing/ERP, integrates with the IRP, and ensures every B2B invoice carries a valid IRN and QR code.