{"id":4418,"date":"2023-05-09T07:06:47","date_gmt":"2023-05-09T07:06:47","guid":{"rendered":"https:\/\/www.enkash.com\/resources\/live\/?p=4418"},"modified":"2026-03-11T10:59:51","modified_gmt":"2026-03-11T05:29:51","slug":"e-invoicing-under-gst","status":"publish","type":"post","link":"https:\/\/www.enkash.com\/resources\/blog\/e-invoicing-under-gst","title":{"rendered":"E-invoicing under GST: Applicability, Benefits and Process"},"content":{"rendered":"

E-invoicing under GST refers to electronic invoicing where a GST invoice, credit note, or debit note is verified by a GSTN-authorised Invoice Registration Portal (IRP)<\/a>. It is an invoice prepared by the supplier that is reported in the IRP, which verifies the data and generates an Invoice Reference Number (IRN)<\/a>, making the document compliant for Goods and Services Tax<\/a> purposes.<\/p>\n

E-invoicing follows a standardized digital format that ensures the authenticity and uniformity of invoice data across different systems. Based on practical implementation experience, it not only reduces manual errors and duplication but also improves reconciliation, helps in faster filing of GST returns<\/a>, and creates a clear audit report. This standardisation improves tax compliance while bringing better transparency and operational efficiency to the invoice management<\/a>.<\/p>\n

<\/span>What is E-Invoicing under GST?<\/span><\/h2>\n

E-invoicing under GST is a system where B2B invoices are electronically authenticated by the Invoice Registration Portal (IRP), which generates a unique Invoice Reference Number (IRN), digitally signs the invoice, and adds a QR code<\/a>. Only invoices with a valid IRN are treated as GST-compliant e-invoices.<\/p>\n

Businesses generate invoices in their own ERP or billing software<\/a> and upload the invoice data in a prescribed format to the IRP for validation. After authentication, the invoice data is automatically shared with GSTR-1 and the e-way bill<\/a> system, where applicable, reducing manual entry and improving accuracy in GST reporting.<\/p>\n

The e-invoicing system was approved in the 35th GST Council meeting<\/a> on 21 June 2019 and was introduced in phases, starting with large enterprises and later implement to businesses with a \u20b95 crore or more turnover.<\/p>\n

Once an invoice is authenticated, the data is automatically shared with GSTR-1 and the e-way bill system. This removes manual entry, reduces errors, and helps finance teams maintain accurate and compliant GST records.<\/p>\n

<\/span>Latest E-Invoicing Turnover Limit under GST<\/span><\/h2>\n

The applicability of e-invoicing is based on aggregate turnover in any financial year from FY 2017-18 onwards, not just the current year. In practical implementations, many businesses miss this point and assume the limit applies only to the present year, which leads to non-compliance. Once the threshold is crossed in any year, e-invoicing becomes mandatory going forward.<\/p>\n

Current Turnover Criteria for E-Invoicing<\/h3>\n\n\n\n\n\n\n\n\n\n\n
Aggregate Turnover (\u20b9)<\/div><\/th>\n
E-Invoicing Mandatory
\nFrom<\/div><\/th>\n
Applicability
\nStatus<\/div><\/th>\n<\/tr>\n<\/thead>\n
\u20b9500 crore and above<\/div><\/td>\n
1 October 2020<\/div><\/td>\n
Applicable<\/div><\/td>\n<\/tr>\n
\u20b9100 crore and above<\/div><\/td>\n
1 January 2021<\/div><\/td>\n
Applicable<\/div><\/td>\n<\/tr>\n
\u20b950 crore and above<\/div><\/td>\n
1 April 2021<\/div><\/td>\n
Applicable<\/div><\/td>\n<\/tr>\n
\u20b920 crore and above<\/div><\/td>\n
1 April 2022<\/div><\/td>\n
Applicable<\/div><\/td>\n<\/tr>\n
\u20b910 crore and above<\/div><\/td>\n
1 October 2022<\/div><\/td>\n
Applicable<\/div><\/td>\n<\/tr>\n
\u20b95 crore and above<\/div><\/td>\n
1 August 2023<\/div><\/td>\n
Applicable (Current limit)<\/div><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

<\/span>Who is Required to Generate E-Invoices under GST?<\/span><\/h2>\n

E-invoicing is mandatory for GST-registered taxpayers whose aggregate turnover is \u20b95 crore or more in any financial year from FY 2017-18 onwards. The requirement applies on a PAN basis, meaning turnover across all GST registrations<\/a> of the same PAN<\/a> must be considered.<\/p>\n

Persons Required to Issue E-Invoices<\/h3>\n\n\n\n\n\n\n\n\n
Category of Supply<\/div><\/th>\n
E-Invoice Required<\/div><\/th>\n
Remarks<\/div><\/th>\n<\/tr>\n<\/thead>\n
B2B supplies<\/div><\/td>\n
Yes<\/div><\/td>\n
Mandatory once the threshold is crossed<\/div><\/td>\n<\/tr>\n
Exports<\/div><\/td>\n
Yes<\/div><\/td>\n
Treated as B2B for e-invoicing<\/div><\/td>\n<\/tr>\n
Supplies to SEZ units\/developers<\/div><\/td>\n
Yes<\/div><\/td>\n
With or without payment of tax<\/div><\/td>\n<\/tr>\n
Deemed exports<\/div><\/td>\n
Yes<\/div><\/td>\n
Covered under notified transactions<\/div><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Important Applicability Rules<\/h3>\n