E-invoicing (Electronic Invoicing) under GST is a system where B2B invoices are authenticated by the Invoice Registration Portal (IRP) and assigned a unique Invoice Reference Number (IRN). It was introduced to reduce tax evasion, automate reconciliation, and improve the GST compliance ecosystem. As of August 2023, e-invoicing applies to all GST-registered businesses with annual aggregate turnover exceeding ₹5 crores.

Who Must Generate E-Invoices?

E-invoicing is mandatory for B2B supplies, B2G supplies, exports, and supplies to SEZ units for registered persons with annual aggregate turnover exceeding ₹5 crores in any preceding financial year from 2017-18 onwards.

Exempt from e-invoicing: Banking companies, insurance companies, financial institutions, GTA (Goods Transport Agencies), passenger transport services, multiplex cinema operators, and SEZ units (as suppliers).

The E-Invoice Generation Process

1. Generate invoice in your ERP / accounting software (Tally Prime, Zoho Books, etc.).
2. Submit the invoice JSON to the Invoice Registration Portal (IRP) via API or the e-invoice portal directly.
3. IRP validates the data, generates a unique IRN (Invoice Reference Number) and a QR code.
4. IRP auto-populates the invoice details to GSTR-1 (Part A of GSTR-2B for recipients).
5. Print the IRN and QR code on the physical or digital invoice before sending to the buyer.

Consequences of Non-Compliance

• An invoice without IRN is not a valid GST invoice for B2B transactions — the buyer cannot claim ITC on such invoices.
• Penalty of ₹10,000 per invoice under Section 122 for issuance of a non-compliant invoice.
• Penalty of ₹25,000 per invoice in case of intentional suppression detected during audit.
• E-Way Bill cannot be generated for e-invoiceable transactions without first generating the IRN.

Key Practical Points

• E-invoices cannot be cancelled after 24 hours of generation on the IRP — only an amendment or credit note is possible.
• E-invoicing does not replace the physical/electronic invoice — the IRN and QR code are added to your existing invoice.
• Credit notes and debit notes related to e-invoiceable transactions must also be reported on the IRP.
• Integration of your accounting software with IRP via API makes the process seamless — manual upload is also available for low-volume taxpayers.