What is E-Invoicing?
E-invoicing requires B2B invoices to be authenticated electronically by the Invoice Registration Portal (IRP) before being sent to customers. The IRP issues a unique Invoice Reference Number (IRN) and a QR code that must be printed on the invoice.
Who Must Issue E-Invoices?
Based on aggregate annual turnover (AATO) in any FY from 2017-18 onwards:
| Effective from | AATO threshold |
|---|---|
| 1 Oct 2020 | ₹500 crore |
| 1 Jan 2021 | ₹100 crore |
| 1 Apr 2021 | ₹50 crore |
| 1 Apr 2022 | ₹20 crore |
| 1 Oct 2022 | ₹10 crore |
| 1 Aug 2023 | ₹5 crore |
Cross ₹5 crore in any FY since 2017-18 and e-invoicing is mandatory for your B2B supplies.
Exempt Categories
- SEZ units (developers are covered though)
- Insurance companies, banks, NBFCs
- Goods Transport Agencies (GTAs)
- Passenger transportation services
- Multiplex cinemas
- Government departments
What's Covered
| Covered | Not covered |
|---|---|
| B2B invoices | B2C invoices |
| Credit/debit notes (B2B) | Bills of supply |
| Export invoices | Self-invoices for RCM |
| SEZ supplies | Delivery challans, job-work challans |
| Deemed exports | — |
The E-Invoicing Process
- Generate invoice in JSON schema — your software outputs the standardised format
- Upload to IRP via API or portal (einvoice1 through einvoice6.gst.gov.in)
- IRP validates and returns IRN, signed QR code, acknowledgement number
- Print IRN and QR on the final invoice — without these the invoice is legally invalid
- Auto-population — data flows to GSTR-1, buyer's GSTR-2B, and e-way bill Part A
Time Limit for IRN
Taxpayers with AATO ₹100 crore+ must generate IRN within 30 days of invoice date. Beyond 30 days the IRP rejects the request. For smaller taxpayers no hard deadline, but immediate generation is best practice.
Penalties
- Invoice without IRN where required — treated as no invoice; recipient can't claim ITC; ₹10,000 penalty or 100% of tax (whichever higher)
- Detention of goods in transit if e-invoice IRN not generated
- GSTR-1 mismatch notices if non-IRN invoices reported
How to Implement
| Approach | Best for | Effort |
|---|---|---|
| Manual on IRP portal | <10 invoices/day | 2–3 min per invoice |
| Excel offline tool | 10–50 invoices/day | Batch upload |
| API integration via software | 50+ invoices/day | Zero — auto on invoice save |
iAccounting has direct API integration with IRP. Save a B2B sales invoice → IRN and QR generated and printed in 1.5 seconds. Full audit trail preserved for 8 years.
See e-invoicing →Continue Learning
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