E-invoicing is often confused with "making an invoice on a computer". It is something different: certain businesses must have each B2B invoice registered on a government portal, which returns a unique number and a QR code.
What e-invoicing actually is
You prepare the invoice in your billing software as usual. The software sends the invoice data to the Invoice Registration Portal (IRP) of the GST Network. The IRP validates it, gives it an Invoice Reference Number (IRN), digitally signs it and returns a QR code. The IRN and QR code are then printed on the invoice. The data also flows to the GST return and e-way bill systems.
Who must do it?
E-invoicing applies to registered businesses whose aggregate turnover crossed the notified limit in any financial year from 2017-18 onwards. At the time of writing that limit is ₹5 crore. It covers B2B supplies, exports and supplies to SEZs, but not sales to consumers (B2C), with some exceptions. Some categories, such as insurers, banks and financial institutions, SEZ units and passenger transport services, are exempt, and the largest taxpayers have a time limit for reporting each invoice.
Thresholds, categories and reporting time limits are changed by notification. Check the current position on the GST portal (einvoice1.gst.gov.in) or with your CA.
If your turnover is below the limit
You do not need to generate an IRN. You still issue regular GST tax invoices with all the Rule 46 particulars (see our GST invoice format guide). If your turnover is approaching the limit, plan ahead: once you cross it, e-invoicing applies from the next financial year.
Where Rashtra Bill stands
Rashtra Bill produces GST-compliant tax invoices, but it does not currently connect to the Invoice Registration Portal and cannot generate an IRN or the government QR code. It is a good fit for businesses below the e-invoicing limit. If e-invoicing applies to you, use software that is integrated with the IRP or the free e-invoice tools on the government portal.
Frequently asked questions
Is e-invoicing the same as an e-way bill?
No. An e-invoice registers the invoice with the IRP and produces an IRN and QR code. An e-way bill is a separate document needed to move goods above a value limit.
Do B2C invoices need an IRN?
Generally no. E-invoicing is for B2B, export and SEZ supplies, with a QR code requirement for B2C only for very large taxpayers. Confirm the current rule with your CA.
This guide is general information for small businesses, not legal or tax advice. GST rules, rates and thresholds are changed by notification, so check the current position on the GST portal or with your chartered accountant before acting.