GST E-Invoicing — Mandatory Applicability, Turnover Limit and Process

GST e-invoicing (electronic invoicing) makes it mandatory for specified taxpayers to upload B2B invoices to the Invoice Registration Portal (IRP) — where a unique Invoice Reference Number (IRN) and QR code are generated. From August 1, 2023, e-invoicing is mandatory for businesses with aggregate annual turnover exceeding ₹5 crore. Here is the complete guide.

Turnover Threshold — E-Invoicing Applicability

• Current threshold: ₹5 crore aggregate annual turnover — mandatory for all covered B2B supplies
• Turnover is calculated by aggregating all GSTINs under a single PAN across India
• The threshold has been progressively reduced: Started at ₹500 crore (October 2020) → ₹100 crore → ₹50 crore → ₹20 crore → ₹10 crore → ₹5 crore (August 2023)
• Further reduction to ₹1 crore or below is expected in coming years

Invoices Covered Under E-Invoicing

• B2B invoices (supplies to registered businesses)
• Exports invoices
• SEZ supplies
• Deemed exports
• Credit notes and debit notes linked to the above
• Excluded: B2C invoices (for most taxpayers), financial services companies (banking, insurance, NBFC), healthcare providers, SEZ units, government entities

How E-Invoicing Works

• Generate invoice in your accounting/ERP software (must have all required GST fields)
• Upload the JSON file to any IRP (Invoice Registration Portal) — there are 6 IRPs including NIC's einvoice1.gst.gov.in
• IRP validates the invoice, assigns a unique IRN (Invoice Reference Number) and digitally signs the invoice
• IRP returns the signed JSON with IRN and a QR code
• Print the QR code on the invoice — this is the e-invoice (the original invoice with IRN + QR code)
• IRP automatically pushes the invoice data to GSTR-1 — reducing manual data entry

Consequences of Non-Compliance

• Invoice without IRN is treated as invalid — the buyer cannot claim ITC on it
• Penalty: ₹10,000 per invoice for not generating e-invoice (Section 122)
• Tax department can detect non-compliance through GSTR-1 vs e-invoice portal mismatch

Conclusion

GST e-invoicing at ₹5 crore threshold is now a standard compliance for mid-size and large businesses — automating GSTR-1 population and creating a verifiable audit trail for all B2B transactions. SPOTON provides GST e-invoicing setup, IRP integration advisory and compliance support for businesses across Kerala. Contact us for expert GST compliance services.