E-invoicing has become an important part of GST compliance for businesses in India. But what exactly is an e-invoice, who is required to generate it, and how does the process work?

What is an E-Invoice Under GST?

An e-invoice is not simply a PDF or digitally created invoice. Under GST, e-invoicing means reporting specified invoices and related documents to an authorised Invoice Registration Portal (IRP) and obtaining an Invoice Reference Number (IRN). The system also generates a digitally signed QR code for the reported invoice.

E-invoicing is governed by Rule 48(4) of the CGST Rules, 2017 and has been implemented in phases.

Who Needs to Generate E-Invoices?

Currently, e-invoicing applies to taxpayers having Aggregate Annual Turnover (AATO) of ₹5 crore or more in any preceding financial year from FY 2017-18 onwards, subject to the applicable exemptions. The turnover is considered at the PAN level across GST registrations.

Certain categories, such as specified banking and financial institutions, insurance companies, Goods Transport Agencies, passenger transportation service providers and SEZ units, are exempt subject to the applicable provisions.

How Does E-Invoicing Work?

The process is straightforward:

  1. Create the invoice using your accounting or billing software.
  2. Report the required invoice details to an authorised IRP.
  3. The IRP validates the information and generates the IRN.
  4. A digitally signed QR code is generated.
  5. The e-invoice details are transmitted to the GST system for further reporting.
  6. The invoice containing the IRN and QR code is shared with the customer.

An important compliance requirement is that taxpayers with AATO of ₹10 crore or more must report invoices, credit notes and debit notes within 30 days from the document date from April 1, 2025.

Simplify E-Invoicing with Technology

Integrated GST invoicing software can connect your billing process with e-invoicing workflows, helping reduce manual data entry and improve accuracy.

Choose a reliable cloud-based GST invoicing solution to create invoices, generate IRNs and manage e-invoicing more efficiently.