E-invoicing under GST was introduced to standardize B2B invoicing in India and to ensure seamless flow of Input Tax Credit (ITC) through real-time reporting of invoices to the GST Invoice Registration Portal (IRP).
Unlike traditional invoicing, e-invoicing does not mean generating invoices from the government portal. Instead, the taxpayer generates the invoice from their own ERP/accounting software and then uploads it to the IRP for authentication.

The IRP validates the invoice, assigns a unique Invoice Reference Number (IRN), and digitally signs it along with a QR code. This authenticated e-invoice is then shared with both the supplier and buyer, and automatically reported in GSTR-1 for return filing.

Applicability

Turnover Thresholds (as per latest updates till FY 2025-26):

1. From 1st October 2020 – Mandatory for taxpayers with turnover ≥ ₹500 Crore.
2. From 1st January 2021 – Extended to taxpayers with turnover ≥ ₹100 Crore.
3. From 1st April 2021 – Extended to taxpayers with turnover ≥ ₹50 Crore.
4. From 1st April 2022 – Extended to taxpayers with turnover ≥ ₹20 Crore.
5. From 1st October 2022 – Extended to taxpayers with turnover ≥ ₹10 Crore.
6. From 1st August 2023 – Extended to taxpayers with turnover ≥ ₹5 Crore.

To Whom E-Invoicing is Applicable

• Applicable to all B2B supplies of goods or services.
• Export supplies (with or without payment of IGST).
• Supply to SEZ units/developers.
• Deemed exports.

Exempted Entities

Certain registered persons are exempt irrespective of turnover:

1. SEZ units (but not SEZ developers).
2. Banks, NBFCs, insurance companies.
3. Goods Transport Agency (GTA) supplying goods transport services.
4. Passenger transport service providers.
5. Cinematograph film exhibition in multiplexes.
6. Government departments/local authorities engaged in supply.

Invoices Covered by E-Invoicing

• E-invoicing is applicable to:
  • Tax invoices issued for supply of goods or services.
  • Debit notes and credit notes related to the above invoices.
• It applies primarily to B2B supplies and export invoices.
• Invoices not covered include:
  • Bill of supply issued by composition dealers.
  • Export invoices for SEZ units (with specific conditions).
  • Invoices for exempt supplies and certain notified categories.

Process of Generating E-Invoice

1. Invoice Creation: Supplier creates invoice in his accounting/ERP software with mandatory particulars.
2. Upload to IRP: JSON file of invoice is uploaded to the IRP (direct API, GST Suvidha Provider, or through accounting software).
3. Validation by IRP:
   • Deduplication check (no duplicate IRN).
   • Digital signature of invoice.
   • Generation of IRN (64-character unique number).
   • Generation of QR Code (contains GSTIN, invoice number, date, HSN, value, tax, etc.).
4. Authenticated Invoice: IRP returns the digitally signed invoice with IRN & QR code to supplier.
5. Auto-population: Invoice details auto-populated in GSTR-1 of supplier and GSTR-2B of recipient.

When to Issue E-Invoice

• E-invoice must be generated before issuing the actual tax invoice to the buyer.
• For goods → at or before removal of goods.
• For services → within 30 days from supply of service.
• Invoice without IRN and QR code is invalid and recipient cannot claim ITC.

Consequences of Not Issuing E-Invoice

1. Invoice without IRN = invalid tax invoice (Rule 48(5)).
2. Recipient cannot claim ITC on such invoice.
3. Movement of goods without valid e-invoice = liable for detention and penalty under Section 129.

Penalty under Section 122: ₹10,000 or amount of tax evaded, whichever is higher.