E-Invoicing Under GST: Applicability, Turnover Limit, Rules & Compliance Guide (2025)
E-invoicing under GST has become mandatory for a large number of businesses in India. Introduced to curb tax evasion and improve transparency, the GST e-invoicing system requires eligible taxpayers to generate invoices electronically and report them to the Invoice Registration Portal (IRP).
This detailed guide explains what e-invoicing under GST is, its applicability, turnover limit, rules, exemptions, and compliance requirements.
What Is E-Invoicing Under GST?
E-invoicing under GST is a system where invoice details are electronically reported to the GST Invoice Registration Portal (IRP) for authentication. Once verified, the IRP generates:
Invoice Reference Number (IRN)
Digitally signed e-invoice
QR code
Only invoices validated by IRP are considered legally valid GST invoices.
Important: E-invoicing does not mean creating invoices on the GST portal. Businesses continue to generate invoices using accounting software such as ERP or cloud-based tools.
GST E-Invoicing Rules Explained
The following are the key GST e-invoicing rules applicable to eligible taxpayers:
Invoice data must be uploaded in JSON format to IRP
IRP validates supplier GSTIN, invoice number, and tax details
IRN is generated and digitally signed
QR code is issued for verification
Invoice data automatically flows to:
GSTR-1
e-Way Bill system (if applicable)
E-invoice cancellation allowed within 24 hours on IRP
Any amendment must be done through GST returns, not via IRP.
E-Invoicing GST Turnover Limit
E-invoicing applicability is determined based on aggregate turnover on a PAN basis.
Current Turnover Threshold for E-Invoicing:
₹5 crore and above in any financial year from FY 2017-18 onwards
Once a taxpayer crosses the threshold, e-invoicing remains mandatory even if turnover later falls below the limit.
GST E-Invoice Applicability
E-invoicing under GST is applicable to:
B2B supplies
Export invoices
Credit notes and debit notes related to B2B and exports
E-invoicing is not applicable to:
B2C invoices
Delivery challans
Non-GST supply documents
Is E-Invoicing Mandatory Under GST?
Yes. E-invoicing is mandatory for businesses exceeding the prescribed turnover limit. Non-compliance may result in:
Invoice treated as invalid
Penalty under GST law
Denial of Input Tax Credit (ITC) to recipients
Business disruptions due to rejected invoices
GST E-Invoice Compliance Requirements
To ensure GST e-invoice compliance, businesses must:
Use IRP-enabled accounting or billing software
Generate IRN before issuing invoices to customers
Ensure accuracy in GSTIN, HSN, tax rates, and invoice numbers
Maintain IRN and QR code records
Train accounting staff on e-invoicing procedures
Read More: https://compliancecraftadvisors.com/blogs
Final Thoughts
E-invoicing under GST is a critical compliance requirement for eligible businesses. With automation, real-time reporting, and reduced errors, it strengthens the GST ecosystem while improving transparency.
Businesses and accounting professionals must stay updated and implement e-invoicing correctly to avoid penalties and compliance risks.
Frequently Asked Questions (FAQs) on GST Refund E-Invoicing Under GST
What is e-invoicing under GST?
E-invoicing is a GST system where eligible businesses must electronically register invoice details on IRP to obtain IRN and QR code.
Who is required to comply with e-invoicing under GST?
GST-registered taxpayers whose aggregate turnover exceeds ₹5 crore in any financial year are required to comply.
Is e-invoicing mandatory for all GST-registered businesses?
No. It is mandatory only for businesses crossing the notified turnover threshold.
What is the turnover limit for e-invoicing under GST?
The current turnover limit is ₹5 crore or more on a PAN-India basis.
From which date is e-invoicing applicable under GST?
E-invoicing became applicable to businesses with ₹5 crore turnover from 1 August 2023.
Which businesses are exempt from e-invoicing under GST?
The following are exempt from GST e-invoicing:
Banks and financial institutions
Insurance companies
NBFCs
Goods Transport Agencies (GTA)
Passenger transport services
SEZ units (subject to conditions)
Is e-invoicing applicable to service providers under GST?
Yes. Service providers must comply with e-invoicing if their turnover exceeds the prescribed limit.
Does e-invoicing apply to B2C transactions?
No. E-invoicing applies only to B2B and export transactions.
What are the penalties for non-compliance with e-invoicing?
Penalties include:
₹10,000 per invoice or 100% of tax amount (whichever is higher)
Invoice invalidation
ITC denial to customers
How does the e-invoicing system work under GST?
The GST e-invoicing process works as follows:
Invoice is generated in accounting software
Invoice data is uploaded to IRP
IRP validates invoice details
IRN and QR code are generated
Invoice data flows to GST returns and e-Way Bill system
Valid e-invoice is issued to the recipient