E-Invoicing Compliance: What Every Business Owner Must Know
E-invoicing is now mandatory for businesses above ₹5 crore turnover. Learn what IRN, QR codes, and IRP mean for your business.
What is E-Invoicing?
E-invoicing (Electronic Invoicing) under GST is a system where B2B invoices are authenticated by the Invoice Registration Portal (IRP) of the Government of India. Once validated, each invoice receives a unique Invoice Reference Number (IRN) and a digitally signed QR code.
Current Applicability Thresholds
As of 2024, e-invoicing is mandatory for taxpayers with aggregate turnover:
- Above ₹5 crore in any financial year from 2017-18 onwards
The threshold has progressively reduced from ₹500 crore when introduced in 2020, and further changes are expected.
The E-Invoicing Process
- Create Invoice in your accounting/billing software
- Upload to IRP via API integration or direct portal
- Receive IRN — a 64-character unique hash
- QR Code Generated — contains key invoice details
- Print IRN & QR on the physical invoice before sharing
Impact on Input Tax Credit
E-invoices are auto-populated in the buyer's GSTR-2B, making ITC claims seamless and reducing disputes. Buyers cannot claim ITC on invoices not reported via e-invoicing if the supplier is mandated to do so.
Common Mistakes to Avoid
- Issuing invoices without IRN when e-invoicing is applicable
- Cancelling e-invoices after 24 hours (only amendments allowed after that)
- Not printing the QR code on invoice copies sent to buyers
- Failing to update ERP/billing software for IRP API integration
InvoiceGST & E-Invoicing
InvoiceGST integrates directly with the IRP, auto-generating IRN and QR codes for every applicable invoice. CAs can manage all their clients' e-invoicing from a single dashboard.
Conclusion
E-invoicing compliance is non-negotiable. Ensure your billing software supports IRP integration and your clients are educated on the requirements.