GST E-Invoicing — IRN Generation, Applicability Threshold and Compliance Guide

E-invoicing (Electronic Invoicing) under GST requires businesses above the turnover threshold to register all B2B invoices on a government-approved Invoice Registration Portal (IRP) before sending them to customers. The IRP generates a unique Invoice Reference Number (IRN) and QR code that must be printed on the invoice. Here is the complete guide to GST e-invoicing compliance.

E-Invoicing Threshold — Who Must Comply?

E-invoicing is mandatory for registered businesses with aggregate annual turnover exceeding ₹5 crore in any preceding financial year from 2017-18 onwards (as of 2023 onwards — the threshold has been progressively reduced from ₹500 crore in 2020 to ₹5 crore in 2023).

Which Documents Need E-Invoicing?

• Mandatory for e-invoicing: B2B tax invoices, credit notes and debit notes issued to registered recipients
• Export invoices (for IGST zero-rating claims)
• Invoices where RCM (Reverse Charge Mechanism) applies
• NOT required for e-invoicing: B2C invoices (to unregistered customers) — regular invoice is sufficient
• Delivery challans, bill of supply (for exempt supply), financial credit notes

How E-Invoicing Works

• Step 1: Generate invoice in your accounting/billing software with all required details (GSTIN of supplier and recipient, invoice number, date, HSN, taxable value, GST)
• Step 2: Upload the invoice in JSON format to the IRP (Invoice Registration Portal) — via direct API integration, or through GST Suvidha Providers (GSPs), or via the NIC IRP portal
• Step 3: IRP validates the invoice, generates a unique IRN (Invoice Reference Number) — a 64-digit hash — and digitally signs the invoice
• Step 4: IRP returns the signed e-invoice with IRN, QR code, and digitally signed JSON
• Step 5: Print the IRN and QR code on the final invoice sent to the customer
• IRP also auto-populates the invoice details in GSTR-1 — reducing data entry

Exemptions from E-Invoicing

• Banking companies, insurance companies, financial institutions
• Goods Transport Agencies (GTA)
• Passenger transport services
• Multiplex cinema operators
• Special Economic Zone (SEZ) units (SEZ developer NOT exempt)

Consequences of Non-Compliance

An invoice issued without a valid IRN (where e-invoicing is applicable) is not considered a valid tax invoice under GST. The recipient CANNOT claim ITC on such invoices. Penalty: 100% of tax due (up to ₹10,000 minimum) under Section 122 for issuing invalid invoices.

Conclusion

GST e-invoicing is now mandatory for most mid-sized and large businesses in India — ensuring real-time invoice data flow to the government and reducing ITC fraud. SPOTON helps businesses implement e-invoicing, integrate with IRP, and ensure all B2B invoices carry valid IRN and QR codes. Contact us for expert GST technology and compliance services.