E-Invoice

An e-invoice under GST is a regular tax invoice that has been authenticated by the government's Invoice Registration Portal (IRP). You still create the invoice in your own billing or accounting software. The difference is that once created, the invoice details are uploaded to the IRP in a standard JSON format. The IRP validates the details, generates a unique Invoice Reference Number (IRN), digitally signs the invoice, and adds a QR code. Without this IRN, the invoice is legally invalid for GST purposes and your buyer cannot claim Input Tax Credit on it. E-invoicing is governed by Rule 48(4) of the CGST Rules 2017 and is currently mandatory for all GST-registered businesses with an annual aggregate turnover above Rs. 5 crore.

Quick reference

Full form	Electronic Invoice
Governed by	Rule 48(4) of the CGST Rules 2017
Mandatory for	Businesses with Annual Aggregate Turnover above Rs. 5 crore
Applies to	B2B supplies, exports, supplies to SEZs
Does not apply to	B2C supplies, composition scheme dealers, banks, insurance, GTAs
Key output	Invoice Reference Number (IRN) and QR code
Upload portal	Invoice Registration Portal (IRP) at einvoice1.gst.gov.in
Time limit to upload (turnover above Rs. 10 crore)	Within 30 days of the invoice date
Penalty for non-compliance	Rs. 10,000 or 100% of tax, whichever is higher, per invoice

How e-invoicing works step by step

Here is exactly what happens when a business covered under e-invoicing raises an invoice:

1. You create the invoice in your own software. The invoice is created in your billing or ERP system exactly as before. It includes all mandatory GST fields like GSTIN, HSN code, tax rates, and invoice value.

2. Your software generates the JSON file. The invoice data is converted into a standard JSON format as per Form GST-INV-01 with approximately 50 mandatory fields.

3. The JSON is uploaded to the IRP. Your software sends the invoice data to the Invoice Registration Portal either directly or through an authorised IRP service provider like IRIS IRP, ClearTax IRP, or Masters India IRP.

4. The IRP validates and generates the IRN. The IRP checks the invoice for errors, verifies the GSTINs, and runs a de-duplication check. If the invoice passes validation, it generates a unique 64-character hash called the Invoice Reference Number (IRN).

5. The IRP digitally signs the invoice and generates a QR code. The QR code contains key invoice details including supplier GSTIN, recipient GSTIN, invoice number, date, value, HSN codes, and the IRN. The signed JSON is returned to your system.

6. You print and share the invoice with your buyer. The final printed invoice must display the IRN and QR code. The IRP also auto-populates the invoice data into your GSTR-1 draft and sends it to the e-way bill portal.

7. Your buyer gets the ITC benefit. Because the invoice is validated and authenticated by the IRP, your buyer can see it in their GSTR-2B and claim Input Tax Credit without any reconciliation issues.

E-invoice example for Indian businesses

Kiran runs a software consulting firm in Hyderabad with an annual turnover of Rs. 8 crore. Since his turnover exceeds Rs. 5 crore, e-invoicing is mandatory for all his B2B invoices.

On 10th March 2026, Kiran invoices a Bengaluru-based IT company for Rs. 2,50,000 plus 18% GST for consulting services.

His billing software:

• Creates the invoice with all mandatory GST fields
• Converts it to JSON format
• Uploads it to the IRP within the same day

The IRP validates the invoice and returns:

• IRN: a64character64hashstring1234567890abcdefghijk (64-character code)
• QR code: contains all key invoice details
• Digital signature: applied by IRP

Kiran's printed invoice now shows the QR code and IRN. His buyer in Bengaluru can scan the QR code to verify the invoice instantly and sees it in their GSTR-2B to claim ITC of Rs. 45,000.

Who must generate e-invoices in India

E-invoicing is currently mandatory for all GST-registered businesses where the Annual Aggregate Turnover (AATO) was Rs. 5 crore or more in any financial year from 2017-18 onwards.

The threshold has been reduced progressively:

Phase	AATO threshold	Effective from
Phase 1	Rs. 500 crore	1st October 2020
Phase 2	Rs. 100 crore	1st January 2021
Phase 3	Rs. 50 crore	1st April 2021
Phase 4	Rs. 20 crore	1st April 2022
Phase 5	Rs. 10 crore	1st October 2022
Phase 6	Rs. 5 crore	1st August 2023

Important: The AATO is calculated by combining the turnover of all GSTINs under your PAN across India. If your total PAN-level turnover crossed Rs. 5 crore in any single financial year since 2017-18, e-invoicing is mandatory for you now, even if your current year's turnover is lower.

Who is exempt from e-invoicing

Even if your turnover exceeds Rs. 5 crore, the following categories are exempt from e-invoicing:

• Banks and financial institutions
• Insurance companies
• Non-Banking Financial Companies (NBFCs)
• Goods Transport Agencies (GTAs)
• Passenger transport services
• Units in Special Economic Zones (SEZs) as suppliers
• Composition scheme dealers
• B2C transactions (invoices to unregistered buyers)

The 30-day upload rule

From 1st April 2025, businesses with an AATO of Rs. 10 crore or more must upload their invoices to the IRP within 30 days of the invoice date. If an invoice is not uploaded within 30 days, the IRP will reject it. The invoice cannot be used for GST compliance or ITC claims after this window closes.

For businesses with AATO between Rs. 5 crore and Rs. 10 crore, there is currently no specific time limit imposed, but best practice is to upload invoices at the time of issuance.

What the IRN and QR code mean

Invoice Reference Number (IRN): A unique 64-character alphanumeric code generated by the IRP for every authenticated e-invoice. It is generated using four parameters: supplier GSTIN, financial year, invoice number, and document type. No two invoices can have the same IRN. Once generated, the IRN is valid for the life of the invoice.

QR code: A scannable code embedded on every e-invoice. It contains key details of the invoice and can be scanned by the buyer, tax authorities, or any auditor to instantly verify the invoice's authenticity without accessing the GST portal. The QR code also contains the digital signature of the IRP.

An invoice from a covered business without both the IRN and QR code is legally invalid under Rule 48(4) of the CGST Rules 2017.

What e-invoicing is not

Many Indian business owners are confused about what e-invoicing actually is. Here are the most common misconceptions:

E-invoicing does not mean the government creates your invoice. You continue to create invoices in your own system. The IRP only validates and authenticates what you have created.

E-invoicing does not replace your billing software. You still need your billing software to create invoices. The e-invoicing system is an additional layer of authentication on top of your existing process.

E-invoicing does not apply to B2C invoices. If you invoice an individual consumer who is not GST-registered, that invoice does not go through the e-invoicing process. Only B2B invoices, export invoices, and invoices to SEZs are covered.

An e-invoice is not the same as an e-way bill. An e-way bill is a separate document required for transporting goods. However, when you generate an e-invoice, the IRP automatically sends the data to the e-way bill portal, so Part A of the e-way bill is pre-filled. You still need to generate the e-way bill if required.

How e-invoicing helps your business

• No manual GSTR-1 entry for e-invoice transactions. Validated invoice data from the IRP automatically flows into your GSTR-1 draft, saving time and eliminating data entry errors.
• Faster ITC for your buyers. Since e-invoices appear in GSTR-2B automatically, your buyers get their ITC reflected without any reconciliation delays. This makes you a preferred supplier.
• Reduced risk of fake invoices. Because every invoice is authenticated before use, there is no risk of duplicate or fraudulent invoices being used to claim bogus ITC.
• Transit compliance is easier. For goods requiring an e-way bill, the IRP pre-populates the data so you do not need to enter it twice.

Common e-invoicing mistakes Indian businesses make

• Not checking if the turnover threshold applies to your PAN, not just your GSTIN. Many multi-branch or multi-location businesses check only their single GSTIN turnover and incorrectly assume they are below the threshold. The AATO is calculated across all GSTINs under the same PAN.

• Printing invoices before uploading to IRP. Some businesses print and share invoices with buyers before generating the IRN. This is non-compliant. The IRN and QR code must be on the invoice before it is shared.

• Missing the 30-day upload window. Businesses with AATO above Rs. 10 crore must upload within 30 days of the invoice date. After this, the IRP rejects the upload and the invoice becomes invalid for ITC purposes.

• Trying to cancel an e-invoice after 24 hours. An e-invoice can be cancelled on the IRP portal only within 24 hours of generation. After that, you must issue a credit note to reverse it. You cannot cancel and re-upload after 24 hours.

• Not registering on an IRP. You must register on one of the government-authorised IRPs before you can upload invoices. The main IRP is at einvoice1.gst.gov.in but there are also authorised private IRPs. Many businesses delay this registration and then face a compliance gap.

Frequently asked questions

What is an e-invoice under GST in India?

An e-invoice under GST is a regular tax invoice created by your own billing software that is then uploaded to the Invoice Registration Portal (IRP). The IRP validates the invoice, generates a unique Invoice Reference Number (IRN), digitally signs it, and adds a QR code. Without the IRN, the invoice is legally invalid under Rule 48(4) of the CGST Rules 2017 and your buyer cannot claim Input Tax Credit.

Who needs to generate e-invoices in India?

All GST-registered businesses with an Annual Aggregate Turnover above Rs. 5 crore are required to generate e-invoices for their B2B supplies, exports, and supplies to SEZs. The AATO is calculated across all GSTINs under your PAN for any financial year from 2017-18 onwards. B2C invoices, composition scheme dealers, banks, insurance companies, and GTAs are exempt.

Is an e-invoice the same as a regular GST invoice?

The content is the same, but a regular GST invoice does not have an IRN or QR code. An e-invoice is a GST invoice that has been authenticated by the IRP and carries an IRN and a QR code. For businesses covered under e-invoicing, only invoices with a valid IRN are legally valid.

Can an e-invoice be cancelled?

Yes, but only within 24 hours of generation on the IRP portal. After 24 hours, you cannot cancel the e-invoice on the IRP. If you need to reverse the transaction after this window, you must issue a credit note for the full amount.

What happens if I do not generate an e-invoice when required?

An invoice without a valid IRN is treated as an invalid document under Rule 48(4) of the CGST Rules 2017. Your buyer cannot claim ITC on it. You face a penalty of Rs. 10,000 or 100% of the tax amount, whichever is higher, per invoice. Additionally, if goods are in transit without a valid e-invoice, they can be seized by tax authorities.

Related terms

GST Invoice · Tax Invoice · Input Tax Credit · GSTR-1 · Digital Signature · E-Way Bill · Annual Return

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