GST e-invoicing requires notified businesses to report B2B and export invoices to the Invoice Registration Portal (IRP), which validates them and returns an Invoice Reference Number (IRN) and a QR code. It currently applies to taxpayers with aggregate annual turnover exceeding Rs.5 crore in any financial year since 2017-18.
The threshold and scope
E-invoicing was rolled out in phases by turnover and now applies to taxpayers whose aggregate turnover exceeded Rs.5 crore in any financial year from 2017-18 onwards (effective 1 August 2023). It covers B2B supplies, supplies to SEZ, exports, and credit/debit notes. It does not apply to B2C invoices (though dynamic QR for B2C is a separate requirement).
How the IRN mechanism works
- The supplier creates the invoice in its accounting/ERP system.
- The invoice JSON is uploaded to the IRP.
- The IRP validates it, generates a unique IRN and a signed QR code, and returns them.
- Data auto-flows to GSTR-1 and the e-way bill system.
An invoice issued without a valid IRN, where e-invoicing applies, is not a valid tax invoice, and the recipient may be denied ITC.
Who is exempt
Specified categories are exempt regardless of turnover: SEZ units (not developers), insurers, banking companies and financial institutions, goods transport agencies, passenger transport services, and suppliers of admission to cinematograph/multiplex exhibitions. Verify the current exempt list before concluding.
The 30-day reporting window
Taxpayers above a notified turnover must report invoices to the IRP within 30 days of the invoice date; older invoices are rejected by the portal. Build IRN generation into the billing workflow so no B2B invoice is issued without it, and reconcile IRNs to GSTR-1 monthly.
Key takeaways
- Applies above Rs.5 crore turnover for B2B, SEZ and export invoices.
- IRP returns a unique IRN and signed QR code per invoice.
- No valid IRN = not a valid tax invoice; recipient ITC at risk.
- Report to the IRP within 30 days of the invoice date.