E-Invoicing Under GST: Meaning, Benefits, Compliance Requirements, Components and Process

e-Invoicing under GST makes it easy for businesses to generate, transmit, and manage invoices digitally, simplifying the invoice creation and payment process.
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4 min read
10 February 2026

Electronic invoicing, or e-invoicing, has become a popular way for businesses to create and manage their invoices. In India, the government introduced the GST e-invoice rule to simplify the invoicing process for businesses under the GST system. The e-invoice system ensures smooth tax compliance by connecting with the e-invoice portal, making it easier for businesses to generate and validate invoices. Check your business loan eligibility if you're considering scaling up your billing infrastructure to align with GST compliance requirements.

With e-invoicing under GST, businesses can automate their billing, reduce mistakes, and increase transparency. The use of e-invoicing improves the overall efficiency of tax reporting, making GST invoice management more organised and straightforward. Check your pre-approved business loan to see if you qualify for funds to support digital upgrades or enhance your accounting systems.

Latest e-invoicing updates

June 1, 2025

  • The Invoice Registration Portal (IRP) now treats invoice numbers as case-insensitive, automatically converting all characters to uppercase before generating the Invoice Reference Number (IRN). This update helps avoid duplication and ensures consistency with how invoice data is processed in GSTR-1.

April 1, 2025

  • Multi-Factor Authentication is now compulsory for all GST-registered taxpayers when generating e-invoices and e-way bills.

  • Businesses with an Annual Aggregate Turnover (AATO) of Rs. 10 crore or above must now report e-invoices within 30 days from the date of invoice issuance.

04 April 2025
From 1 June 2025, invoice numbers on the Invoice Reporting Portal (IRP) will be treated as case-insensitive. All invoice numbers will be auto-converted to uppercase before IRN generation, aligning with GSTR-1 treatment.

17 December 2024

  • 2FA on NIC will be mandatory from 1 January 2025 for businesses with AATO above Rs. 20 crore, and from 1 February 2025 for those with Rs. 5–20 crore. From 1 April 2025, all taxpayers must use 2FA for e-invoicing and e-way bills.
  • e-Way bills must be generated within 180 days of the invoice date from 1 January 2025.
  • e-Way bill validity extensions will be limited to 360 days from the original generation date.

05 November 2024
Taxpayers with AATO of Rs. 10 crore and above must report e-invoices on IRP within 30 days, effective from 1 April 2025.

09 September 2024
The GST Council has proposed phased implementation of e-invoicing for B2C transactions. So far, it is applicable only to B2B transactions above Rs. 5 crore turnover.

54th GST Council Meeting Key Highlights on GST invoicing

E-Invoicing for B2C Transactions

  • Update: Gradual implementation of e-invoicing for Business-to-Consumer (B2C) transactions.
  • Goal: Increase transparency and reduce tax evasion.
  • Anticipated Benefit: Enhanced GST compliance and higher government revenue through reduced false invoicing and unreported sales.

What is GST e-invoice under GST?

GST e-invoice is an electronic document that is created and transmitted in a standardised format for invoicing under GST. The e-invoice system is a part of the government's digital India initiative and is designed to streamline and simplify the invoicing process for businesses.

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What are the mandatory fields of an e-invoice?

Here's a table outlining the mandatory fields of an e-invoice:

Field Name

Description

Document Type Code

Specifies the type of document being issued.

Supplier Legal Name

Legal name of the supplier as per PAN card details.

Supplier GSTIN

GST identification number of the supplier.

Supplier Address

Complete address of the supplier including flat number and building details.

Supplier Place

City/ village/ town of the supplier.

Supplier State Code

State code of the supplier.

Supplier Pincode

Six-digit pin code of the supplier's address.

Document Number

Unique sequential invoice number for easy identification.

Preceding Invoice Reference

Reference details for editing previous invoices.

Document Date

Date of issuance of the invoice.

Recipient Legal Name

Legal name of the buyer as per PAN card details.

Recipient's GSTIN

GST identification number of the buyer.

Recipient's Address

Detailed address of the buyer.

Recipient's State Code

State code of the recipient.

Place of Supply State Code

State code of the place of supply.

Pincode

Six-digit pin code of the recipient's location.

Recipient Place

Village/ town/ city of the recipient.

Invoice Reference Number (IRN)

Unique number generated by GSTIN after e-invoice upload on the portal.

Shipping To GSTIN

GSTIN of the recipient of the goods.

Shipping To State, Pincode

State and pin code of the recipient's location for shipping.

Dispatch From Name, Address

Name and address of the dispatching entity.

Is Service

Specification of service supply.

Supply Type Code

Code indicating the type of supply (e.g., B2B, SEZ).

Item Description

Description of the item being supplied.

HSN Code

Harmonized System of Nomenclature code for the item.

Item Price

Unit price of the item excluding GST.

Assessable Value

Item price excluding GST after discount.

GST Rate

Rate of GST applicable to the item.

IGST Value

Integrated GST value for the item.

CGST Value

Central GST value for the item.

SGST Value

State GST value for the item.

Total Invoice Value

Total value of the invoice including GST.


Each of these fields is crucial for creating an accurate and compliant e-invoice.

Who must generate e-invoice and its applicability?

E-invoicing is mandatory for businesses with a specified turnover limit set by the tax authorities. The applicability of e-invoicing varies by country, with thresholds and requirements subject to change. Typically, businesses meeting or exceeding the turnover threshold must generate e-invoices for transactions. Here's a simplified table illustrating e-invoicing applicability:

Phase

Applicable to taxpayers having an aggregate turnover of more than

Applicable date

Notification number

I

Rs 500 crore

01.10.2020

61/2020 - Central Tax and 70/2020 - Central Tax

II

Rs 100 crore

01.01.2021

88/2020 - Central Tax

III

Rs 50 crore

01.04.2021

5/2021 - Central Tax

IV

Rs 20 crore

01.04.2022

1/2022 - Central Tax

V

Rs 10 crore

01.10.2022

 17/2022 – Central Tax

VI

Rs 5 crore

01.08.2023

10/2023 - Central Tax


E-invoicing aims to enhance tax compliance, reduce errors, and improve efficiency in business transactions.

Documents and transactions under e-invoicing applicability

The following documents and types of transactions come under the scope of e-invoicing applicability:

Documents

Transactions

Tax invoices, credit notes, and debit notes issued under Section 34 of the CGST Act

Taxable Business-to-Business (B2B) supply of goods or services, Business-to-Government (B2G) transactions, exports, deemed exports, and supplies to SEZ units or developers (with or without tax payment). It also includes stock transfers or service supplies between distinct persons, as well as supplies under reverse charge covered by Section 9(3) of the CGST Act.


Who need not comply with e-Invoicing?

As per CBIC Notification No. 13/2020 - Central Tax, and subsequent amendments, e-invoicing is not applicable to the following categories of registered persons, regardless of their turnover.

Notified Businesses

Documents

Transactions

1) An insurer, a banking company, or a financial institution, including an NBFC
2) A Goods Transport Agency (GTA)
3) A registered person supplying passenger transportation services
4) A registered person providing admission services for cinematographic film exhibitions in multiplexes
5) An SEZ unit (excluded via CBIC Notification No. 61/2020 – Central Tax)
6) Government departments and local authorities (excluded via CBIC Notification No. 23/2021 – Central Tax)
7) Persons registered under Rule 14 of CGST Rules (OIDAR services)

Delivery challans, bills of supply, financial or commercial credit/debit notes, bills of entry, and Input Service Distributor (ISD) invoices

Business-to-Consumer (B2C) sales, nil-rated, non-taxable, or exempt B2B/B2G supplies of goods or services, imports, high sea and bonded warehouse sales, Free Trade and Warehousing Zone (FTWZ) transactions, and supplies under reverse charge covered by Section 9(4) of the CGST Act


What are the modes of generating e-Invoice?

Direct Web-Based (IRP Portal)

Enter invoice details manually on the government’s Invoice Registration Portal (IRP).

No software cost; simple for very few invoices.

Time-consuming, error-prone, and not scalable.

Micro-businesses or occasional users creating only a few invoices per month.

API-Based Integration

Connect your billing or ERP system directly to the IRP via APIs to generate IRNs automatically in real time.

Fully automated, fast, and accurate; integrates smoothly with existing workflows.

Requires technical setup or vendor support; initial costs involved.

Medium to large businesses with high invoice volumes using ERP/accounting systems.

GST Suvidha Provider (GSP)

Use a government-approved third-party GSP platform that handles IRP integration.

No in-house tech needed; provider manages updates and compliance.

Subscription or per-transaction fees apply.

Businesses looking for a hands-off, reliable solution without building their own integration.

Offline Utility Tool (Bulk Generation)

Use the GST portal’s free offline tool to prepare JSON files for multiple invoices and upload them in bulk.

Efficient for batch processing; reduces manual data entry.

Two-step process (prepare then upload); not real-time like API.

Businesses with moderate invoice volumes who prefer batch uploads.

Mobile App

Generate IRNs on the go using the official ‘GST e-Invoice’ app.

Portable and convenient for instant invoicing.

Tedious for high volumes; manual entry on small screens.

Small business owners or field sales staff needing mobility.


For businesses with regular invoicing, API integration—either directly or via a GSP—is the most efficient, accurate, and scalable option. The Offline Utility is a good free choice for batch processing, while the Web Portal or Mobile App works best for very low-volume users.

Systems before and after e-invoicing

Before the implementation of e-invoicing systems, businesses relied on manual or paper-based invoicing processes, which were often time-consuming, error-prone, and labor-intensive. This traditional approach involved printing, mailing, and manually processing invoices, leading to delays, inefficiencies, and increased risk of errors. With the introduction of e-invoicing systems, businesses transitioned to electronic invoicing methods, streamlining the invoicing process, reducing paperwork, and automating invoice generation, delivery, and payment. E-invoicing systems integrate with accounting software, enabling real-time tracking, faster payment processing, and improved accuracy, ultimately enhancing efficiency and reducing costs for businesses.

Benefits of e-Invoice system

Here are some of the benefits of e-invoicing:

  1. Reduced errors: With e-invoicing, the chances of errors in invoicing are minimised, resulting in greater accuracy, and fewer disputes with clients.
  2. Cost savings: e-Invoicing reduces the cost of paper, printing, and postage, thus saving businesses money on logistics and bulk printing.
  3. Faster payment processing: Electronic invoicing is faster and more efficient, allowing businesses to receive payment faster, improve cash flow and reduce late payments.
  4. Reduced compliance risks: The e-invoicing system ensures that businesses comply with GST regulations by automatically updating invoices with the tax amount and providing real-time validation of invoice details.
  5. Saves time: e-Invoicing saves time, eliminates manual processing, and automates many processes such as invoice generation, data entry, and payment processing, making it easier for businesses to manage their finances.

How can e-invoicing curb tax evasion?

E-invoicing plays a crucial role in curbing tax evasion through several mechanisms:

  1. Real-time Transaction Monitoring: Tax authorities gain immediate access to transactions as they occur, promoting transparency and accountability.
  2. Reduced Manipulation: With invoices generated prior to transactions, there's limited scope for manipulation, enhancing the integrity of tax records.
  3. Prevention of Fake Invoices: Mandatory e-invoicing minimizes the prevalence of fraudulent GST invoices, ensuring only genuine input tax credits can be claimed.
  4. Enhanced Tracking: Matching input credit with output tax details enables efficient identification and tracking of fake tax credit claims, bolstering tax compliance and enforcement measures.

Compliance Requirements

E-invoicing is mandatory for GST-registered businesses with an annual turnover exceeding ₹5 crore in any financial year since 2017-18. This regulation came into effect on August 1, 2023, under Notification No. 10/2023 – Indian Taxation System, aiming to enhance compliance and promote the digitalisation of business transactions.

Key highlights include:

  • Threshold limit: Entities with an annual gross turnover exceeding ₹5 crore must generate e-invoices for all B2B transactions
  • Previous threshold: Before August 2023, the threshold was set at ₹10 crore
  • Applicability:
    1. E-invoicing applies to all GST-registered businesses whose turnover exceeded ₹5 crore in any financial year from 2017-18 to date
    2. Aggregate turnover is calculated as the total revenue across all GSTINs under a single PAN in India
  • Exemptions:
    1. Small taxpayers below the ₹5 crore threshold
    2. Certain sectors or services are specifically exempted by the government

How does the GST e-invoice system work?

Step 1 – Generating the e-invoice

Taxpayers should generate invoices as usual during business operations. However, electronic reporting of these invoices must follow specific criteria and comply with the e-invoice schema, including all mandatory fields. Below are the required fields for invoices related to the supply of goods:

  • Invoice type
  • Invoice type code
  • Invoice number and date
  • Supplier details: Name, GSTIN, address (including place, pin code, and state)
  • Buyer details: Name, GSTIN, state code, address, place, pin code, payee name, account number, payment mode, and IFSC code
  • Dispatch information
  • Details of items: Description of goods, quantity, rate, assessable value, GST rate, applicable CGST/SGST/IGST, and total invoice value
  • Payment details: Total tax amount, payment received, and payment due
  • Tax scheme: GST, Excise, VAT, or others
  • Shipping details: Name, GSTIN, address, pin code, state, supply type, and transaction mode

The seller must ensure that their accounting or billing software can generate a JSON file of the final invoice. JSON files adhering to the e-invoice schema can be created using these methods:

  • Accounting or billing software that supports JSON generation
  • Integration utilities for accounting systems, ERP, Excel/Word documents, or mobile apps
  • Offline tools for manual data entry to generate e-invoices

Step 2 – Generating a unique IRN

The supplier generates a unique hash using parameters such as the Supplier’s GSTIN, invoice number, and financial year (YYYY-YY). This hash, created with the SHA256 algorithm, is validated to serve as the Invoice Reference Number (IRN) for the e-invoice.

Step 3 – Uploading the JSON file

The JSON file of the final invoice can be uploaded to the Invoice Registration Portal (IRP) using the following options:

  • Direct upload on the IRP
  • Through GST Suvidha Providers (GSPs)
  • Third-party apps or API integration
  • Uploading the hash along with the JSON, if pre-generated by the supplier

Step 4 – Hash generation and validation

If the uploaded invoice does not include a hash, the IRP generates one, which becomes the IRN. When a supplier submits the hash, a de-duplication check ensures its uniqueness against the GST System’s Central Registry. Once validated, the IRP:

  • Stores the IRN in the Central Registry
  • Generates a QR code
  • Digitally signs the invoice
  • Shares the e-invoice via email with both the buyer and seller, as provided on the invoice

How to generate e-invoice in the GST portal?

To generate e-invoices on the official GST portal, follow these steps:

  1. Visit the e-invoice portal and click on the Registration button.
  2. Choose e-Invoice Enablement and enter your company's GSTIN.
  3. Complete OTP verification and provide annual turnover details for the relevant financial year.
  4. Submit the information to register for e-invoicing.
  5. Log in to the e-invoice portal and upload B2B invoices using your preferred mode to generate the Invoice Reference Number (IRN).

Time limit to generate e-invoice

According to the advisory issued on 5th November 2024 by the GSTN portal, the 30-day time limit for reporting e-invoices on the IRP portal has been extended to taxpayers with an Annual Aggregate Turnover (AATO) of Rs.10 crore and above. This amendment will take effect from 1st April 2025, allowing taxpayers adequate time to adapt to the new requirement.

Period

e-Invoice Reporting Requirement

Applicability (AATO Threshold)

Till April 30, 2023

No fixed time limit for generating or reporting e-invoices

All taxpayers under e-invoicing

May 1, 2023 – October 31, 2023

Government proposed a 7-day time limit (not implemented)

Targeted at AATO ≥ Rs.100 crore (kept in abeyance)

From November 1, 2023 onwards

Mandatory reporting of invoices to IRP within 30 days

Applicable to AATO ≥ Rs.100 crore; extended to AATO ≥ Rs.10 crore from April 1, 2025

 

Process of getting an e invoice system

The process of implementing an e-invoice system involves several key stages:

  1. Ensure compliance with PEPPOL standards and incorporate e-invoicing schema into your ERP system.
  2. Whitelist the IP address of your computer system on the e-invoice portal for direct API integration or use a GST Suvidha Provider (GSP).
  3. Utilize a bulk generation tool to upload invoices in bulk and generate JSON files for IRN generation.
  4. Enter all necessary invoice details such as billing information, GSTN, transaction value, item rate, GST rate, and tax amount into your ERP or billing software.
  5. Upload invoice details to the Invoice Registration Portal (IRP) using the generated JSON file, app, or direct API.
  6. IRP will validate the invoice details, check for duplications, and generate an Invoice Reference Number (IRN) along with a digitally signed invoice and QR code.
  7. Receive intimation of e-invoice generation via email and continue printing invoices with a logo as usual.
  8. IRP forwards authenticated data to the GST portal for tax returns and, if applicable, to the e-way bill portal for generation of e-way bills.
  9. GSTR-1 returns are auto-filled for the relevant tax period based on the data provided, determining tax liability accordingly.

Implementing an e-invoice system streamlines invoicing processes, enhances compliance, and facilitates seamless integration with tax and regulatory systems. With e-invoicing solution, ensure efficient and hassle-free compliance with e-invoicing requirements.

Learn more about e-invoices in GST

e-invoice limit

How to Cancel an E-Invoice

How to Generate e Invoice

Invoice Reference Number

Invoice financing


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Frequently asked questions

Who is eligible for GST E-invoice?

Businesses with an annual turnover exceeding Rs. 10 crores are mandated by the GSTN to generate electronic invoices for B2B transactions. To comply, companies need to register with the e-invoicing system and ensure the generation of e-invoices for all their business transactions. This initiative aims to streamline invoicing processes, enhance transparency, and curb tax evasion in the GST regime.

What is the current GST e-invoice limit?

The current GST e-invoice limit is set at Rs. 500 crore in aggregate turnover for businesses. This means that businesses with an annual aggregate turnover exceeding Rs. 500 crore are required to generate e-invoices for their transactions. E-invoicing helps streamline the invoicing process, enhance compliance, and prevent tax evasion by digitally capturing invoice data and facilitating real-time reporting to the GST system. Ensure compliance with GST regulations by adhering to the prescribed e-invoicing threshold based on your business's aggregate turnover.

Who is exempted from e invoice?

According to Rule 48(4) of GST, certain entities are exempted from the e-invoice mandate. These include banks, insurance companies, financial institutions like NBFCs, goods transport agencies, passenger transport services, service suppliers for film exhibitions, and Special Economic Zones (SEZ) Units. However, it's essential to note that while SEZ Units are exempt, Economic Zone Developers must comply with e-invoicing requirements.

How do I generate GST e-invoicing?

To generate GST e-invoicing, businesses need to use an authorized GST e-invoicing software or integrate their existing accounting software with the GST e-invoicing portal. After creating an invoice in the software, they can upload it to the GST e-invoicing portal, where it gets authenticated and assigned a unique Invoice Reference Number (IRN) along with a QR code.

What is the turnover limit for the GST e-invoice?

The turnover limit for GST e-invoicing is determined by the tax authorities and may vary from jurisdiction to jurisdiction. Businesses exceeding the specified turnover threshold are required to generate e-invoices for their transactions in compliance with GST regulations.

Is e-way bill required for e-invoice?

An e-way bill is required for transporting goods exceeding a specified value, regardless of whether an e-invoice is generated. However, e-invoicing and e-way bills are separate compliance requirements under the GST Act.

Is e-invoicing mandatory?

E-invoicing is mandatory for businesses with an annual turnover exceeding the prescribed threshold, which the GST Act periodically updates to include more taxpayers.

What is the e-invoice limit for Rs. 5 crore?

Businesses with an annual turnover exceeding Rs. 5 crore must generate e-invoices for B2B transactions as mandated by the GST Act.

When to issue an e-invoice?

An e-invoice must be issued at the time of the supply of goods or services, ensuring compliance with the GST Act and allowing the invoice to be reported to the government portal.

What happens if I don't generate an e invoice?

Failure to generate an e-invoice when required can lead to penalties, non-compliance issues, and potential disruptions in the credit claims and supply chain under the GST Act.

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