GST E-Invoicing in India —
IRN, IRP & the ₹5cr Rule
Who must generate e-invoices, how the IRN and QR code are created on the Invoice Registration Portal, the 30-day reporting limit, exemptions and how it auto-populates GSTR-1.
E-invoicing under GST is mandatory for businesses whose aggregate annual turnover exceeds ₹5 crore in any financial year from 2017-18 onwards (effective 1 August 2023). Covered suppliers must upload every B2B invoice, export and SEZ supply to the Invoice Registration Portal (IRP), which validates it, returns a unique 64-character IRN and a QR code, and auto-populates GSTR-1. B2C invoices are outside the scheme.
E-Invoice Applicability — Threshold History
The e-invoicing turnover limit has been lowered in phases. The current threshold is ₹5 crore, unchanged by the GST 2.0 rationalisation of 22 September 2025.
| Effective Date | Turnover Threshold (AATO) | Notification |
|---|---|---|
| 1 October 2020 | ₹500cr & above | 13/2020-CT |
| 1 January 2021 | ₹100cr & above | 88/2020-CT |
| 1 April 2021 | ₹50cr & above | 5/2021-CT |
| 1 April 2022 | ₹20cr & above | 1/2022-CT |
| 1 October 2022 | ₹10cr & above | 17/2022-CT |
| 1 August 2023 | ₹5cr & above | 10/2023-CT |
Aggregate turnover is checked across all GSTINs on the same PAN. Once you cross ₹5cr in any year, e-invoicing stays mandatory even if turnover later falls.
If your aggregate turnover crossed ₹5 crore in any financial year from FY 2017-18 onwards, e-invoicing applies — even if this year's turnover is lower. It is a one-way switch that does not turn off.
How E-Invoicing Works — IRP to IRN
E-invoicing does not mean the government generates your invoice. You raise the invoice in your own billing/ERP software in the prescribed JSON schema, then report it to an IRP for authentication.
- The IRP checks for duplicates and returns a unique IRN (Invoice Reference Number) — a 64-character hash of supplier GSTIN + FY + document type + number.
- The IRP digitally signs the invoice and adds a QR code, which must be printed on the physical invoice.
- Validated data auto-populates GSTR-1 and can generate Part-A of the e-way bill.
- An IRN can be cancelled on the IRP within 24 hours; after that you must issue a credit note instead.
For covered suppliers, a B2B invoice without a valid IRN is not a legal tax invoice. It will not auto-populate in the buyer's GSTR-2B, so your customer loses their Input Tax Credit — a fast way to lose B2B clients.
Crossed ₹5cr and not sure if you must e-invoice? Get your applicability confirmed.
Check My E-Invoice Status →The 30-Day E-Invoice Reporting Rule
From 1 April 2025, businesses with an aggregate turnover of ₹10 crore or more must report every invoice, credit note and debit note to the IRP within 30 days of the document date. Miss the window and the IRP rejects it — no IRN is generated.
| Turnover (AATO) | E-invoicing? | 30-day IRP limit? |
|---|---|---|
| Below ₹5cr | No | — |
| ₹5cr to under ₹10cr | Yes | No limit (as of now) |
| ₹10cr & above | Yes | Yes — 30 days |
The 30-day restriction currently applies only to AATO ≥ ₹10cr (GSTN advisory, w.e.f. 1 Apr 2025). Report promptly regardless — a rejected invoice cannot be regularised.
Which Documents Need an E-Invoice?
E-invoice required
- B2B tax invoices to registered persons
- Exports (with or without payment of tax)
- Supplies to SEZ units / developers
- Credit notes & debit notes on the above
- Deemed exports
E-invoice NOT required
- B2C invoices (retail / unregistered buyers)
- Bills of supply (composition / exempt)
- Import bills of entry
- Delivery challans & ISD invoices
- Where the supplier is an exempt category
Need e-invoicing wired into your ERP and reconciled with returns?
Talk to a GST Expert →Who Is Exempt from E-Invoicing?
Certain suppliers are exempt regardless of turnover. For these categories e-invoicing does not apply even above ₹5 crore:
- Banks, insurers, NBFCs and other financial institutions
- Goods Transport Agencies (GTA) supplying road transport of goods
- Passenger transport operators
- Multiplex cinema admission (ticket) services
- SEZ units as suppliers (but SEZ developers are covered)
- Government departments and local authorities
Penalty for Not Generating an E-Invoice
Failing to generate a mandatory e-invoice is treated as non-issuance of a tax invoice under the CGST Act:
| Default | Penalty | Provision |
|---|---|---|
| No e-invoice (no IRN) generated | ₹10,000 or 100% of tax due, whichever higher | Sec 122(1), CGST Act |
| Incorrect / non-conforming invoice | ₹25,000 per invoice | Sec 122, CGST Act |
| Buyer impact | ITC denied | Invoice not in GSTR-2B |
A carried invoice without a valid IRN is also not accepted for movement of goods and can trigger detention under the e-way bill rules.
- Confirm ₹5cr applicability (any FY since 2017-18)
- Map ERP to the e-invoice JSON schema
- Integrate with an IRP (NIC / private)
- Print IRN QR code on every B2B invoice
- Report within 30 days (if AATO ≥ ₹10cr)
- Cancel on IRP within 24 hrs if needed
- Reconcile IRN data with GSTR-1
- Track e-way bill auto-generation
If an e-invoice is part-used for an e-way bill, cancel the e-way bill first, then cancel the IRN — and only within 24 hours. After 24 hours, correct the transaction with a credit note, not a cancellation.
Frequently Asked Questions
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Crossed ₹5 Crore? Get E-Invoicing Right
From ERP-to-IRP integration and IRN generation to the 30-day reporting rule, GSTR-1 auto-population and reconciliation — TaxClue's CA-led team keeps your e-invoicing airtight. 100% online, across India.