GST

E-Invoice

An electronically authenticated invoice generated via the GST portal

Definition

E-Invoice, or electronic invoice, is a system under GST where B2B invoices are electronically authenticated by the Invoice Registration Portal (IRP) managed by the government. When a business generates an invoice, it is uploaded to the IRP in a standardised JSON format, which validates the details and returns a signed invoice with a unique Invoice Reference Number (IRN) and a QR code. E-invoicing was introduced to curb tax evasion, enable real-time tax reporting, and reduce data entry errors in GST returns. As of 2023, e-invoicing is mandatory for businesses with annual turnover exceeding Rs. 5 crore. The e-invoice data is automatically shared with the GST portal and e-way bill system, eliminating the need for separate data entry while filing GSTR-1. For Indian businesses, e-invoicing ensures standardisation across all invoices, faster input tax credit processing for buyers, and reduced compliance burden. Invoices not validated through the IRP are considered invalid for businesses above the threshold.

How It Works

  1. 1When you create a B2B invoice in your billing software, the invoice data is sent in JSON format to the government's Invoice Registration Portal (IRP).
  2. 2The IRP validates the data, checks for duplicates, and returns a signed invoice with a unique IRN (Invoice Reference Number) and a QR code.
  3. 3This data is automatically pushed to the GST portal for GSTR-1 and to the e-way bill system.
  4. 4The buyer can verify any e-invoice by scanning its QR code.

Example

A steel distributor in Raipur with an annual turnover of Rs. 8 crore generates a B2B invoice for Rs. 3,50,000 plus 18% GST (Rs. 63,000) to a construction company. The invoice is uploaded to the IRP, which returns IRN: INV202401150001 and a QR code. The buyer can scan the QR code to verify the invoice authenticity. This invoice data is automatically populated in the distributor's GSTR-1 and the buyer's GSTR-2B, saving both parties time and reducing reconciliation errors on tax credit of Rs. 63,000.

How Stock Register Handles This

  • Generate e-invoices directly from the billing screen — IRN and QR code are fetched and printed on the invoice automatically
  • Bulk e-invoice generation for multiple pending invoices in one click, saving time during month-end rushes
  • Failed e-invoice alerts with clear error descriptions so you can fix issues like invalid GSTIN or incorrect HSN before retrying

Related Terms

GST (Goods and Services Tax)E-Way BillSales Invoice / BillGSTR-1

Related Guides

Create Sales Invoice

Frequently Asked Questions

Is e-invoicing mandatory for my business?

E-invoicing is mandatory for businesses with aggregate annual turnover exceeding Rs. 5 crore (as of August 2023). The threshold has been progressively lowered from Rs. 500 crore when it was first introduced. Check the latest GST notifications as the government may further reduce this limit.

Do I need e-invoicing for B2C (retail) sales?

No, e-invoicing is currently required only for B2B, B2B export, and supplies to SEZ transactions. Retail sales to consumers (B2C) do not require e-invoicing. However, you must still issue proper tax invoices for B2C sales as per GST rules.

What happens if I do not generate an e-invoice when required?

If your business is above the threshold and you issue an invoice without generating an IRN from the IRP, the invoice is considered invalid under GST law. Your buyer cannot claim ITC on such invoices, and you may face penalties during GST audits. Additionally, e-way bills cannot be generated for goods without valid e-invoices.

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