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E-Invoicing Under GST: Who Needs It and How It Works

E-invoicing sounds like "making an invoice on a computer", but under GST it means something specific: certain businesses must report each B2B invoice to a government portal, which returns a unique number and a QR code.

How it works

  1. You create the invoice in your billing software.
  2. The invoice data is sent to the government's Invoice Registration Portal (IRP).
  3. The IRP validates it and returns an Invoice Reference Number (IRN), a digital signature and a QR code.
  4. The IRN and QR code are printed on the invoice you give to the customer.

The invoice details also flow into the GST returns and, where needed, the e-way bill system.

Who must do it?

E-invoicing applies to registered businesses whose aggregate turnover exceeded โ‚น5 crore in any financial year from 2017-18 onward (the threshold has been โ‚น5 crore since 1 August 2023). It applies to B2B invoices, credit and debit notes, and exports. Some categories are exempt, such as certain insurers, banks, SEZ units and others.

From 1 April 2025, taxpayers with aggregate turnover of โ‚น10 crore or more must report an invoice to the IRP within 30 days of its date.

Is it different from the registration threshold?

Yes. GST registration starts at โ‚น20 or โ‚น40 lakh. E-invoicing starts much higher. See GST registration limit.

What if you are below the limit?

You can keep issuing normal GST invoices. A simple, clear format with all mandatory fields is enough. Use our free invoice generator, and check the mandatory fields. Our tool does not generate IRN or QR codes. If your turnover is above the limit, use e-invoicing-enabled billing software.

Thresholds and deadlines are revised from time to time. Verify on the official GST e-invoice portal or with your CA.