Invoicing under GST explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
E-invoicing under GST means generating a B2B invoice that is authenticated on the government Invoice Registration Portal (IRP), which returns an Invoice Reference Number (IRN) and a QR code. Here is who it applies to and how it works.
Who must generate e-invoices
- Businesses whose aggregate turnover crosses the notified e-invoicing threshold (₹5 crore) in any year from 2017-18
- B2B supplies, exports and supplies to SEZ — B2C invoices are excluded
- Not applicable to certain categories such as banks, insurers, GTAs and passenger transport
The e-invoicing process
- Create the invoice in your accounting/ERP software in the prescribed schema
- Upload it to the IRP, which validates and returns the IRN and a signed QR code
- Print the QR code and IRN on the invoice given to the buyer
- The e-invoice data auto-populates your GSTR-1 and can generate the e-way bill
Benefits
- Reduces fake invoicing and mismatches
- Auto-populates returns and e-way bills
- Faster input tax credit for buyers
Frequently Asked Questions
What is the turnover limit for e-invoicing?
E-invoicing applies to businesses with aggregate turnover above ₹5 crore in any financial year since 2017-18.
Is e-invoicing required for B2C sales?
No — e-invoicing applies to B2B, export and SEZ supplies; B2C invoices are excluded (though a dynamic QR code applies to large B2C sellers).
What is an IRN?
The Invoice Reference Number is a unique number the IRP assigns to each authenticated e-invoice.
Does e-invoicing replace GSTR-1?
No, but e-invoice data auto-populates GSTR-1, reducing manual entry.
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