E-Invoicing
Setup & Compliance
for Your Business
E-invoicing is mandatory for B2B transactions if your turnover exceeds ₹5 crore. Get your IRP registration, IRN generation workflow, QR code compliance, and software integration handled end-to-end — CA-assisted, 100% online.
What is E-Invoicing Under GST?
E-invoicing (Electronic Invoicing) under GST is a system where B2B invoices are authenticated in real-time by the Invoice Registration Portal (IRP), operated by NIC (National Informatics Centre). Once authenticated, the IRP generates a unique Invoice Reference Number (IRN) and a QR code that must appear on every e-invoice.
E-invoicing does NOT mean generating invoices on a government website. It means your existing invoice (generated in your ERP, Tally, or billing software) is uploaded to the IRP for authentication before being sent to your buyer. The authenticated e-invoice with IRN is the only valid B2B invoice for registered recipients.
Key Insight: E-Invoice ≠ Government Invoice
You still use your own billing software (Tally, Zoho, SAP, custom ERP). E-invoicing simply adds a real-time authentication step where the IRP validates your invoice data, stamps it with an IRN, and returns a digitally signed QR code. Your format and branding stay intact.
How E-Invoicing Works — End to End
🔢 What is an IRN (Invoice Reference Number)?
A 64-character SHA-256 hash — unique for every invoice, cannot be duplicated or altered
E-Invoicing Applicability — Turnover-Based Rollout
The government rolled out e-invoicing in phases based on annual aggregate turnover. The threshold has progressively reduced over the years:
Turnover above ₹500 Crore Live
Large businesses with aggregate turnover exceeding ₹500 Cr in any preceding financial year were brought under e-invoicing first.
Turnover above ₹100 Crore Live
Extended to businesses with turnover above ₹100 Crore. Also mandatory for exporters in this phase.
Turnover above ₹50 Crore Live
Further expanded to mid-sized businesses crossing the ₹50 Crore threshold in any FY from 2017–18 onwards.
Turnover above ₹20 Crore Live
Smaller businesses with turnover between ₹20–50 Crore brought into the e-invoicing fold.
Turnover above ₹10 Crore Live
Businesses crossing ₹10 Crore in any FY from 2017–18 are now mandatorily covered.
Turnover above ₹5 Crore Currently Mandatory
The current threshold applicable to all businesses with aggregate turnover above ₹5 Crore in any preceding FY from 2017–18. This includes businesses that crossed ₹5 Cr even in a single year.
Turnover Calculated on Aggregate Basis
Aggregate turnover includes all GSTINs under the same PAN across India. If your business has branches in multiple states and their combined turnover exceeds ₹5 Crore, e-invoicing is mandatory for all GSTINs — even if individual units are below the threshold.
Transactions Covered Under E-Invoicing
| Transaction Type | E-Invoice Required? | Notes |
|---|---|---|
| B2B Supply (Domestic) | ✅ Yes | All B2B invoices to registered recipients |
| Export of Goods / Services | ✅ Yes | Including zero-rated and LUT exports |
| SEZ Supply (with/without payment) | ✅ Yes | Supply to SEZ units or developers |
| Credit Notes / Debit Notes (B2B) | ✅ Yes | For B2B amendments and returns |
| B2C Supply (to consumers) | ❌ No | IRN not required for B2C invoices |
| Nil-Rated / Exempt Supplies | ❌ No | Fully exempt goods & services |
| Delivery Challans | ❌ No | Non-supply documents excluded |
| Advance Receipt Vouchers | ❌ No | Receipt documents not covered |
How to Generate an IRN — Step by Step
There are three ways to generate IRNs depending on your invoice volume and technical capability. TaxClue sets up the most appropriate method for your business.
-
1
Register on the IRP Portal
Visit einvoice1.gst.gov.in (or any of the 6 IRPs) → Use your GSTIN credentials → Set up API username and password. TaxClue completes this registration and tests the connection for you on the same day.
-
2
Prepare the Invoice in JSON Format
The invoice data must be structured as a specific JSON schema prescribed by GSTN. This includes supplier/recipient GSTIN, item details, HSN codes, tax amounts, and document details. Your billing software or ERP generates this JSON automatically once integrated.
-
3
Upload JSON to IRP (via API or Portal)
The JSON is submitted to the IRP in real time. If you're generating <100 invoices/month, the IRP portal's web upload works. For higher volumes, direct API integration with your software is recommended for automation.
-
4
IRP Validates, Generates IRN & QR Code
The IRP validates the JSON, checks for duplicate invoices, generates the 64-character IRN, a digitally signed QR code, and an e-invoice JSON. This typically completes within 2–3 seconds.
-
5
Print IRN + QR Code on Invoice
The authenticated e-invoice must have the IRN and QR code printed on it before sending to the buyer. The QR code contains key invoice details for instant offline verification by GST officers using the GST app.
-
6
GSTR-1 & E-way Bill Auto-Populated
Once IRN is generated, invoice data is automatically pushed to GSTR-1 (outward supply return) and can auto-generate an E-way Bill if goods transport is involved — eliminating double data entry entirely.
4 Ways to Integrate E-Invoicing with Your Business
Choose the integration method that fits your invoice volume and software setup. TaxClue sets up whichever method you need.
IRP Web Portal (Manual)
Login to the IRP portal directly, fill invoice details or upload a JSON/Excel file, and download the authenticated e-invoice.
GSP / ASP Integration
Connect via a GST Suvidha Provider (GSP) or Application Service Provider (ASP). They act as middleware between your software and the IRP API.
Direct IRP API Integration
Your in-house or custom software calls the IRP REST API directly. Fully automated — invoice created → IRN generated → QR attached, all in one workflow.
Tally / Zoho / Vyapar Built-in
Most major accounting packages (Tally Prime, Zoho Books, Marg, Busy, Vyapar) have built-in e-invoicing modules. Just configure your GSTIN and API credentials.
TaxClue Handles the Full Integration
We assess your current billing setup, recommend the right integration method, configure API credentials, test with sandbox invoices, and go live. For Tally/Zoho users, we configure the e-invoicing module same day. For custom ERP, we provide API documentation support and testing assistance.
E-Invoicing Compliance — What You Must Manage
IRN Generation Before Dispatch
Every B2B invoice must have an IRN generated before goods are dispatched or services are invoiced.
QR Code on Invoice
The digitally signed QR code returned by IRP must be printed / embedded on the invoice PDF before sending to buyers.
IRN Cancellation (Within 24 hrs)
If an invoice is cancelled or modified after IRN generation, the IRN must be cancelled within 24 hours.
GSTR-1 Reconciliation
Verify that all IRN-tagged invoices are correctly auto-populated in GSTR-1. Mismatches cause ITC disputes for buyers.
Amendment via Credit / Debit Note
E-invoices cannot be amended after 24 hours. Changes must be processed through GST Credit Notes or Debit Notes — which also require IRN.
E-Invoice Compliance Audit
Periodic review to ensure all invoices have valid IRNs, QR codes are present, and no invoice-level mismatches in GST returns.
Businesses Exempt from E-Invoicing
Even if your turnover exceeds ₹5 crore, certain categories are exempt from e-invoicing under CGST Notification:
Exemptions Can Change — Always Verify
The government periodically revises exemption categories via notifications. SEZ unit exemption and sector-specific exemptions are subject to revision. TaxClue tracks all GST notifications and alerts you when your category is brought under e-invoicing.
Documents & Information Required for E-Invoice Setup
For Each E-Invoice Generated:
Penalties for Non-Compliance with E-Invoicing
Failing to generate e-invoices when mandatory is treated as issuing an invalid invoice under the CGST Act. This has serious consequences for both supplier and buyer.
⚠️ Penalties for E-Invoice Non-Compliance — CGST Act Section 122
⚠️ ITC Impact: If your buyer is a GST-registered business, they CANNOT claim Input Tax Credit on your invoice if you haven't generated an IRN. This will damage your business relationships and invite disputes.
Backdated IRN Generation is NOT Allowed
IRNs must be generated before or at the time of supply. You cannot generate an IRN for a past-dated invoice. If you've been issuing invoices without IRNs, TaxClue helps you assess the compliance gap, rectify through Credit Notes, and set up systems to prevent future non-compliance.
Frequently Asked Questions
E-invoicing becomes mandatory for you from the beginning of the next financial year after your aggregate turnover crosses ₹5 Crore. For example, if you crossed ₹5 Cr in FY 2023–24, e-invoicing is mandatory from 1 April 2024. However, if you crossed ₹5 Cr in any year from FY 2017–18 onwards, e-invoicing applies from the date of the applicable notification — which for ₹5 Cr threshold is 1 August 2023.
No — e-invoices cannot be modified after IRN generation. The IRP system is final and immutable. If you need to make changes: (1) If within 24 hours, cancel the IRN and generate a fresh one with correct data. (2) If beyond 24 hours, you must issue a Credit Note or Debit Note (which also requires its own IRN) to adjust the difference. Raising a CDN is the only legally compliant way to amend an e-invoice after 24 hours.
No. E-invoicing is an additional authentication layer, not a replacement. You continue using your existing billing software (Tally, Zoho, SAP, etc.) to create invoices. The system sends invoice data to the IRP for authentication, receives back the IRN and QR code, and prints them on your existing invoice template. Your invoice format, logo, and branding remain unchanged.
Yes — every B2B invoice requires an IRN regardless of value if you're above the ₹5 Crore threshold. There is no minimum invoice value exemption for e-invoicing (unlike E-way Bill which has a ₹50,000 threshold). Even a ₹100 B2B invoice must have an IRN if you're a mandated taxpayer. Only B2C invoices are exempt from IRN requirements.
Tally Prime has a built-in e-invoicing module (from Release 2.0 onwards). You need to: (1) Enable e-invoicing in your Tally company settings, (2) Configure your IRP API credentials (username and password from the e-invoice portal), (3) Set up your internet connection mode in Tally. TaxClue provides Tally e-invoicing configuration as a same-day service — we remote-configure your Tally setup and test with a live invoice before handing over.
The IRP portals operate under a 6-IRP system (NIC operates 2 portals, plus 4 private IRPs: Cygnet, Clear, IRIS, and Masters India). If one portal is down, you can switch to any other IRP — all are interoperable. In the rare case all portals are simultaneously unavailable, the GSTN has provisions for offline invoice generation with subsequent upload. TaxClue monitors IRP uptime and guides you through any disruptions.
Set Up E-Invoicing Before Your Next Invoice
Every B2B invoice without an IRN is invalid, blocks your buyer's ITC, and risks a ₹10,000 penalty. TaxClue sets up your complete e-invoicing workflow — same day.
🔒 Confidential · 4.9★ Google Rating · No Hidden Charges · CA + Tech Assisted