AI-Powered Invoicing
CEO
An e-invoice in India is a GST-compliant invoice that must be reported to the government’s Invoice Registration Portal (IRP) before being shared with the buyer.
If your business crosses the prescribed turnover limit, e-invoicing is not optional it’s a legal requirement. This guide explains e invoice requirements india, who must comply, how it works, and where most businesses go wrong.
Many business owners believe e-invoicing means:
All three are incorrect.
The big misunderstanding is this:
E-invoicing is not about how you create an invoice-it’s about reporting it correctly.You can use any billing software, Excel, or ERP. What matters is whether your invoice data is registered with the IRP and validated with an Invoice Reference Number (IRN).
Ignoring e invoice requirements india doesn’t just mean non-compliance it can invalidate your invoice entirely.
An e-invoice is a regular tax invoice whose details are electronically authenticated by the GST Invoice Registration Portal (IRP).
Once validated, the invoice gets:
Important: E-invoicing does NOT mean creating invoices on the GST portal.This distinction sits at the heart of e invoice requirements india.
| Myth | Reality |
|---|---|
| E-invoice is a PDF | PDF is just the output, not the invoice |
| GST portal creates invoices | You create invoices, IRP validates them |
| Only for B2B | Applies mainly to B2B, but rules vary |
| Optional for large firms | Mandatory once threshold is crossed |
This is where e invoice requirements india become very specific.
E-invoicing is mandatory for businesses with aggregate annual turnover exceeding ₹5 crore (PAN-based).
Applies to:
Does NOT apply to:
| Date | Threshold |
|---|---|
| Oct 2020 | ₹500 crore |
| Jan 2021 | ₹100 crore |
| Apr 2022 | ₹20 crore |
| Aug 2023 | ₹5 crore |
This gradual lowering explains why many mid-size businesses suddenly fall under e invoice requirements india without realizing it.
Even if turnover exceeds ₹5 crore, e-invoicing is not required for:
These exemptions are notified by CBIC under Rule 48(4) of CGST Rules.
Understanding the workflow makes e invoice requirements india much clearer.
You generate a normal GST invoice using:
The invoice data (JSON format) is uploaded to:
IRP checks:
Once validated:
Invoice data flows to:
This automation is the core benefit behind e invoice requirements india.
Missing even one mandatory field can cause rejection.
| Field | Required |
|---|---|
| Supplier GSTIN | Yes |
| Buyer GSTIN | Yes (B2B) |
| Invoice number | Yes |
| Invoice date | Yes |
| Taxable value | Yes |
| GST rate (CGST/SGST/IGST) | Yes |
| HSN/SAC code | Yes |
| IRN & QR code | Auto-generated |
Before generating an e-invoice, businesses must first ensure their invoice structure meets GST rules. You can refer to our detailed guide on how to create a GST-compliant invoice in India to understand mandatory fields, formats, and common compliance mistakes.
The push for e invoice requirements india is not arbitrary.
(Source context: GST Council releases, CBIC compliance reports)
Even compliant businesses fail due to small errors.
1. Generating invoice but skipping IRP upload
2. Using wrong invoice series
3. Cancelling invoice after 24 hours (not allowed)
4. Issuing B2B invoice without IRN
5. Confusing e-invoice with e-way bill
A GST invoice without IRN (when applicable) is legally invalid.
Many of these errors also appear in regular invoicing. We’ve broken them down in detail in our guide on common invoice mistakes businesses make.
These rules are central to understanding e invoice requirements india correctly.
Ignoring e-invoicing has real consequences.
| Violation | Penalty |
|---|---|
| Invoice without IRN | ₹10,000 per invoice |
| Incorrect invoicing | ₹25,000 |
| ITC denial to buyer | Business risk |
| GST notices | High |
Penalties arise under Section 122 of CGST Act.
| Aspect | Normal Invoice | E-Invoice |
|---|---|---|
| Government validation | No | Yes |
| IRN | No | Yes |
| QR Code | No | Yes |
| Auto-GST return | No | Yes |
| ITC confidence | Medium | High |
E invoice requirements india don’t affect sellers alone.
For buyers:
Many large companies refuse non-IRN invoices, even if GST is charged.
No. Only businesses exceeding the notified turnover threshold must comply with e invoice requirements india.
Yes, but invoice data must still be uploaded to the IRP portal for IRN generation.
No. IRN is not mandatory for B2C invoices, though QR code rules may apply separately.
No. They are different systems, although e-invoice data can be used to generate e-way bills.
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