E-Invoice (Electronic Invoice) under GST is a system where B2B invoices are electronically authenticated by the GST Network (GSTN) through the Invoice Registration Portal (IRP). It aims to standardize invoicing and reduce tax evasion.
Applicability
From DateTurnover Threshold 1 Oct 2020Above Rs. 500 crores 1 Jan 2021Above Rs. 100 crores 1 Apr 2021Above Rs. 50 crores 1 Apr 2022Above Rs. 20 crores 1 Oct 2022Above Rs. 10 crores 1 Aug 2023Above Rs. 5 crores
How E-Invoice Works
- Supplier generates invoice in their system
- Invoice details uploaded to Invoice Registration Portal (IRP)
- IRP validates and generates Invoice Reference Number (IRN)
- IRP adds QR code and digital signature
- Signed invoice returned to supplier
- Auto-population in GSTR-1 and E-way bill
Invoice Reference Number (IRN)
A unique 64-character hash generated for each invoice. It is valid indefinitely and serves as the unique identifier for the invoice.
Benefits
- Auto-population of invoice details in GST returns
- Seamless generation of E-way bills
- Reduction in input credit frauds
- Standardization of invoicing
- Faster ITC reconciliation
Exempted Transactions
- B2C (Business to Consumer) supplies
- Supplies to SEZ units
- Exports (optional)
- Financial services, insurance, banking
- Passenger transportation services
Time Limit
E-invoice must be generated within 30 days of invoice date (for turnover above Rs. 100 crores).