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 Date | Turnover Threshold |
|---|---|
| 1 Oct 2020 | Above Rs. 500 crores |
| 1 Jan 2021 | Above Rs. 100 crores |
| 1 Apr 2021 | Above Rs. 50 crores |
| 1 Apr 2022 | Above Rs. 20 crores |
| 1 Oct 2022 | Above Rs. 10 crores |
| 1 Aug 2023 | Above 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).