E-Invoicing is a system where businesses above a specified turnover threshold must generate their GST invoices through the government's Invoice Registration Portal (IRP) rather than simply issuing them directly to customers. When an invoice is submitted to the IRP, it's validated and assigned a unique Invoice Reference Number (IRN) along with a QR code, and this data automatically flows into the business's GSTR-1, removing the need for separate manual entry of invoice details. The threshold was progressively lowered in stages after e-invoicing was introduced, and currently stands at aggregate turnover exceeding ₹5 crore in any financial year since 2017-18 (effective 1 August 2023, per Notification 10/2023-Central Tax); once a business crosses this threshold in any year, the obligation is sticky and continues even if turnover later falls. Pure business-to-consumer sales remain outside the mandatory e-invoice requirement for now. E-invoicing significantly reduces manual data-entry errors and mismatches between what a seller reports and what shows up in a buyer's GSTR-2B, since the invoice data is validated and shared centrally at the point of generation rather than being separately keyed into two different returns later.
Example: A business crossing the e-invoicing turnover threshold must now generate every B2B invoice through the IRP; a regular invoice created only in its own accounting software, without an IRN and QR code, would not be considered a valid GST invoice.
Accounting Baba's AI Powered Accounting Course covers GST, Tally, Excel and AI tools together.
See the Course →