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Glossary · GST

E-Invoice

A GST invoice authenticated in real time by the Invoice Registration Portal and assigned a unique Invoice Reference Number (IRN) and QR code.

Published Updated 2 min read

Definition

What is an E-Invoice?

An e-invoice is a standardized digital invoice reported to the government’s Invoice Registration Portal (IRP) at the moment it is issued. The portal validates the invoice, assigns a unique Invoice Reference Number (IRN), and returns a digitally signed QR code that must be printed on the physical or PDF invoice.

Contrary to the name, businesses do not generate invoices on a government portal. They continue to use their own billing or ERP systems. E-invoicing is the act of reporting the invoice to the IRP in a standardized JSON schema.

How e-invoicing works, step by step

  1. Raise the invoice in your billing or ERP system as usual.
  2. Convert to the e-invoice JSON schema and send it to the IRP, either directly or through a GST Suvidha Provider.
  3. The IRP validates and signs the invoice, returning the 64-character IRN and a digitally signed QR code.
  4. Print the QR code and IRN on the invoice you give the customer.
  5. Data auto-flows into your GSTR-1 and the buyer’s GSTR-2A / GSTR-2B.

Turnover threshold and rollout

The e-invoicing mandate has expanded in phases since October 2020, with the turnover threshold steadily lowered from Rs. 500 crore to Rs. 100 crore, Rs. 50 crore, Rs. 20 crore, Rs. 10 crore, and, from 1 August 2023, Rs. 5 crore. A business above the threshold in any financial year since 2017-18 must e-invoice its B2B supplies.

What is covered, and what is exempt

E-invoicing applies to B2B supplies, exports, supplies to SEZ, and the related credit and debit notes. It does not apply to B2C invoices. Some categories are exempt regardless of turnover, including banks and NBFCs, insurers, goods transport agencies, passenger transport services, cinema admission, and SEZ units acting as suppliers.

Cancelling, amending, and the 30-day rule

An IRN can be cancelled in full within 24 hours on the IRP; there is no partial cancellation and no amendment on the portal. After 24 hours, correct the position with a credit note rather than a cancellation. Separately, from 1 April 2025, taxpayers with aggregate turnover of Rs. 10 crore or more must report an invoice within 30 days of its date, so old invoices cannot be batched late.

Why it matters

Once an invoice is reported to the IRP, the data automatically flows into the supplier’s GSTR-1 and the recipient’s GSTR-2A / GSTR-2B. This eliminates manual data entry, removes a large class of ITC reconciliation mismatches, and shrinks the window for fake ITC claims.

E-Way Bill synergy

E-invoice JSON can carry transport details; when present, the IRP can auto-generate the corresponding E-Way Bill, collapsing two compliance steps into one.

Consequences of non-compliance

If the e-invoicing mandate applies to a supplier and they fail to generate an e-invoice, the document is legally invalid as a tax invoice. The recipient cannot claim ITC against it, and the supplier faces penalties under the CGST Act.

Related terms

FAQ

Frequently asked questions

What is an e-invoice under GST?

An e-invoice is a normal GST invoice that has been reported to the government's Invoice Registration Portal (IRP) at the time of issue. The IRP validates it, assigns a unique Invoice Reference Number (IRN), and returns a digitally signed QR code that must appear on the invoice. You still raise the invoice in your own billing or ERP system; e-invoicing is the act of reporting it, not generating it on a government site.

What is the turnover limit for e-invoicing in India?

As of the latest notification, businesses with aggregate annual turnover above Rs. 5 crore in any financial year since 2017-18 must generate e-invoices for B2B supplies. The threshold has fallen in phases from Rs. 500 crore in October 2020 to Rs. 5 crore from 1 August 2023.

Is e-invoicing mandatory, and for which documents?

It is mandatory for taxpayers above the turnover threshold, for B2B supplies, exports, supplies to SEZ, and the related credit and debit notes. It does not apply to B2C invoices. Certain sectors are exempt, including banks and NBFCs, insurers, goods transport agencies, passenger transport, and cinema admission, as well as SEZ units as suppliers.

How do you generate an e-invoice?

Your billing or ERP system prepares the invoice in the standard e-invoice JSON schema and sends it to the IRP (directly or through a GST Suvidha Provider). The IRP validates it, returns the IRN and a signed QR code, and you print that QR code on the invoice. The whole exchange happens in real time at the point of issue.

Can you cancel or amend an e-invoice?

An IRN can be cancelled in full on the IRP within 24 hours of generation; partial cancellation and amendment are not allowed on the portal. After 24 hours you cannot cancel the IRN, so you correct the position by issuing a credit note (which is itself e-invoiced). Amendments otherwise flow through GSTR-1.

What is the 30-day reporting time limit?

From 1 April 2025, taxpayers with aggregate turnover of Rs. 10 crore or more must report an invoice to the IRP within 30 days of the invoice date. After that window the portal will reject the IRN request, so larger taxpayers cannot batch old invoices.

What is the difference between an e-invoice and an e-way bill?

An e-invoice authenticates the tax invoice itself and assigns an IRN. An e-way bill authorises the movement of goods above a value threshold. They are linked: when transport details are included, the IRP can auto-generate the e-way bill from the same e-invoice data, collapsing two steps into one.