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GST E-Invoice — E-Invoicing Under GST Explained
Updated: 3 June 2026 | CGST Act | Threshold: ₹5 Crore (w.e.f. 1 Aug 2023)
E-invoicing under GST is mandatory for businesses with aggregate annual turnover exceeding ₹5 crore (effective 1 August 2023). Suppliers must upload B2B invoices to the Invoice Registration Portal (IRP) in JSON format. The IRP validates the invoice, assigns a unique IRN (Invoice Reference Number), digitally signs it, and returns a QR code. The validated invoice is auto-populated in GSTR-1 and GSTR-2B — eliminating duplicate data entry.
₹5 Croreaggregate turnover threshold for mandatory e-invoice generation under GST — applicable from 1 August 2023.
How E-Invoicing Works
The e-invoicing process is a standardised, government-mandated workflow. The supplier’s billing software (ERP/accounting) generates the invoice in the prescribed JSON schema and uploads it to any of the authorised IRPs (NIC, Clear, Deloitte, etc.). The IRP authenticates the supplier’s GSTIN, checks for duplicate IRNs, and returns the signed e-invoice with an IRN and QR code within seconds. The supplier then prints the QR code on the physical invoice and delivers it to the buyer.
Simultaneously, the IRP pushes the validated invoice data to the GST portal (auto-populates GSTR-1) and the e-way bill system (auto-generates Part A of the e-way bill if transportation details are provided).
E-Invoice Applicability Threshold History
Effective Date
Turnover Threshold
Notification
1 October 2020
₹500 Crore & above
Notfn. 13/2020-CT
1 January 2021
₹100 Crore & above
Notfn. 88/2020-CT
1 April 2021
₹50 Crore & above
Notfn. 5/2021-CT
1 October 2022
₹10 Crore & above
Notfn. 17/2022-CT
1 August 2023
₹5 Crore & above
Notfn. 10/2023-CT
Who Is Exempt from E-Invoicing?
Even if turnover exceeds ₹5 crore, e-invoicing does not apply to:
Banking companies, insurance companies, financial institutions and NBFCs — SEZ units (as suppliers) — goods transport agencies (GTA) supplying services by road — passenger transport operators — multiplexes supplying cinema admission services — and government departments and local authorities. Exporters are required to generate e-invoices (exports are B2B equivalent under GST e-invoicing rules).
Frequently Asked Questions
Who needs to generate e-invoice under GST?
E-invoicing is mandatory for GST-registered businesses (other than exempt categories) with aggregate annual turnover exceeding ₹5 crore in any preceding financial year from FY 2017-18. Once the turnover threshold is crossed, e-invoicing applies to all B2B supplies, exports, and supplies to SEZ units. Government departments, banking/insurance companies, SEZ units (as suppliers), passenger transport operators, and multiplex cinema operators are exempt.
What is IRN in e-invoicing?
IRN (Invoice Reference Number) is a unique 64-character alphanumeric code generated by the Invoice Registration Portal (IRP) when a supplier uploads their invoice in JSON format. The IRP validates the invoice, generates the IRN, digitally signs the invoice, and returns a QR code. The IRN must be printed on the physical invoice. Each IRN is unique for a combination of supplier GSTIN + financial year + document type + document number.
Can an e-invoice be cancelled?
Yes, an e-invoice can be cancelled on the IRP within 24 hours of generation. After 24 hours, cancellation on the IRP is not possible — you must issue a credit note under GST instead. A cancelled IRN cannot be used again. If the e-invoice has been part-utilised for an e-way bill, the e-way bill must also be cancelled before cancelling the e-invoice.
How does e-invoice affect GSTR-1?
E-invoices are auto-populated in GSTR-1. When you generate an e-invoice and obtain an IRN from the IRP, the invoice details are automatically pushed to the GST portal and reflected in your GSTR-1 dashboard (Table 4A, 4B, 6A, or 9A as applicable). This reduces manual data entry and the risk of errors. Businesses covered under e-invoicing cannot report these invoices manually in GSTR-1 — only auto-populated invoices are accepted.
What is the penalty for not generating e-invoice?
Failure to generate a mandatory e-invoice (i.e., not obtaining an IRN) is treated as a non-issuance of a tax invoice. The penalty is ₹10,000 per invoice or 100% of the tax due on the supply — whichever is higher — under Section 122 of the CGST Act. The buyer also loses the right to claim ITC on such invoices since invoices without a valid IRN are not auto-populated in GSTR-2B.
