🔹 Introduction

E-invoicing under GST is one of the most significant reforms in indirect tax compliance. It ensures real-time reporting of B2B invoices to the government through the Invoice Registration Portal (IRP). By FY 2025, e-invoicing has expanded to cover a much larger segment of businesses, making it essential for taxpayers to understand its applicability, process, and compliance requirements.

(Reference: Rule 48(4) of CGST Rules, Notifications 13/2020, 70/2020, 13/2021, 17/2022, 10/2023 & amendments till 2025)

🔹 Applicability of E-Invoicing

✅ Turnover Threshold

• From 1 August 2023 – mandatory for taxpayers with aggregate turnover ≥ ₹5 crore in any FY since 2017-18.

• Applicable to all B2B supplies, exports, and supplies to SEZ (with or without payment of tax).

❌ Exemptions

E-invoicing is not applicable to:

• SEZ units (developers covered).

• Banks, NBFCs, Insurance companies.

• Goods Transport Agencies (GTA).

• Passenger transport service providers.

• Multiplex cinemas.

🔹 How E-Invoicing Works – Step-by-Step Process

📌 Step 1: Invoice Preparation
Generate invoice in your ERP/accounting software in the prescribed schema (JSON format).

📌 Step 2: Upload to IRP
Upload invoice JSON to the Invoice Registration Portal (IRP) via API, bulk upload, or offline tool.

📌 Step 3: IRP Validation
IRP verifies invoice details → generates Invoice Reference Number (IRN) and Signed QR Code.

📌 Step 4: Auto-Reporting
Invoice data is auto-shared with GST portal (for GSTR-1) & E-Way Bill system.

📌 Step 5: Invoice Issuance
Supplier issues invoice to buyer with IRN & QR code printed.

⚠️ Without IRN, the invoice is invalid under GST law.

🔹 Documents Covered

• Tax Invoices.

• Debit Notes.

• Credit Notes.

(B2C invoices are not covered under e-invoicing.)

🔹 Non-Compliance Consequences

• Invoice without IRN = invalid invoice.

• Buyer cannot claim ITC.

• Penalty: ₹10,000 per invoice (Sec. 122) + possible prosecution.

• Department may issue notices for ITC reversal & penalty.

🔹 Practical Example

A wholesaler in Noida with turnover of ₹12 crore supplies goods to another registered dealer. He generates invoice in Tally, uploads JSON to IRP → IRN & QR code generated → invoice issued to buyer. If not uploaded to IRP, the invoice is invalid and ITC to buyer is denied.

🔹 Common Mistakes in E-Invoicing

• Issuing invoices without IRN/QR code.

• Uploading after issuing invoice (backdated invoices invalid).

• Ignoring e-invoicing for debit/credit notes.

• Not integrating ERP with IRP leading to delays.

🔹 Best Practices

• ✅ Integrate ERP/accounting software with IRP APIs.

• ✅ Train billing staff on e-invoicing process.

• ✅ Reconcile IRP invoices with GSTR-1 regularly.

• ✅ Always print/display QR code on invoice copy.

🔹 FAQs

Q1. Is e-invoicing applicable for exports?
➡️ Yes, exports are covered.

Q2. Is e-invoicing applicable for B2C invoices?
➡️ No, only B2B, exports, and SEZ supplies.

Q3. Can an e-invoice be cancelled?
➡️ Yes, within 24 hours on IRP (after that via credit note).

Q4. What happens if IRP is down?
➡️ Invoices must be generated offline and uploaded once IRP is available.

Q5. Can an exempt entity opt for voluntary e-invoicing?
➡️ Yes, if desired.

🔹 Conclusion

E-invoicing has streamlined GST compliance and improved transparency. However, non-compliance results in severe penalties and ITC denial. Businesses must integrate their accounting systems, train staff, and regularly reconcile invoices with GST returns.

📌 Need expert help with e-invoicing setup, ERP integration, or compliance audits?
Contact Tech-Tax Solutions – Quality, Trust & Expertise in Ghaziabad, Noida & Delhi.