How to Generate an e-Invoice on the GST Portal: Step-by-Step Process

Find out how to generate an e-invoice for GST. Easy steps, benefits, and compliance tips for businesses of all sizes.
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4 min
29 August 2025

GST e-invoicing is a key reform in India’s tax compliance framework, aimed at simplifying procedures, improving accuracy, and curbing tax evasion. It works by electronically authenticating invoices generated through accounting software on the GSTN, ensuring smooth return filing and e-way bill generation. This guide covers what GST e-invoicing means, its applicability, and the benefits it offers, such as standardisation, automation, and hassle-free reconciliation. It also explains the step-by-step process of generating an e-invoice. For both small businesses and large enterprises, adopting e-invoicing helps streamline compliance, reduce errors, and build transparency across the supply chain.

What is a GST e-invoice?

E-invoicing, also known as GST e-invoice, involves the electronic authentication of invoices generated by accounting software through the GSTN. This process enables seamless tasks such as return preparation and e-way bill creation under the GST framework.

It works by submitting invoices already created in accounting software to the GST Portal. Since different software platforms use varied formats to store data, the GST system earlier faced difficulties in interpreting this information. To resolve this, a standardised format (Schema) was introduced, making it easier to share data across systems without compatibility issues.

For businesses, the process of creating invoices, whether printed or electronic, remains largely the same. The only change is that all invoice data is now compiled into a standard JSON format, ensuring compatibility with the GST Portal for authentication and approval.

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Eligibility for GST e-invoicing

  • Applicable by turnover: E-invoicing is mandatory if a business turnover exceeds ₹10 crore in the preceding financial year.
  • For GST-registered entities: It applies to GST-registered businesses engaged in the supply of goods or services.
  • For Business-to-business transactions: Mandatory for B2B dealings where both the seller and buyer are registered under GST.
  • Voluntary option: Small businesses with a turnover up to ₹10 crore can also opt in voluntarily.
  • Simplified compliance: Voluntary adoption makes GST compliance and filing easier, reducing errors and streamlining processes.

Benefits of GST e-invoicing

GST e-invoicing introduces several advantages that streamline business operations and enhance compliance with tax regulations. Here are the key benefits:

  • Error reduction: Automating the invoice process minimises human errors in data entry and calculations, ensuring accuracy in financial records and tax filings.
  • Faster payment cycles: E-invoices facilitate quicker verification and reconciliation of transactions between businesses, leading to faster approval and payment cycles.
  • Improved efficiency: The integration of e-invoicing with ERP systems automates and speeds up the entire billing process, from creation to archiving, saving time and reducing administrative burdens.
  • Enhanced transparency: Real-time tracking of invoices helps businesses and tax authorities monitor transactions more effectively, increasing transparency and aiding in better tax compliance.
  • Cost savings: Reducing the need for paper-based processes cuts down on printing and storage costs, contributing to overall cost efficiency.
  • Fraud prevention: With unique identification numbers and QR codes, e-invoices are less prone to tampering, helping prevent fraud and ensuring authenticity.

These benefits collectively contribute to a more robust, transparent, and efficient tax system, fostering trust and reliability in business transactions under the GST framework.

How to generate an e-invoice?

Below are the steps businesses need to follow to generate a GST e-invoice:

  • Step 1. Invoice Generation
    Create the invoice using billing or accounting software in the prescribed format. A common misconception is that e-invoices must be generated directly on the GST portal, but in reality, taxpayers can use any software capable of generating invoices in the required schema.
  • Step 2. Generation of Invoice Registration Number (IRN)
    Next, report the invoice to the Invoice Registration Portal (IRP). An IRN is a unique 64-character code generated using a hash algorithm. It ensures that each invoice is distinct, and IRN can be generated both in offline and API modes.
  • Step 3. Upload on IRP
    Upload the JSON file of each B2B invoice, along with the generated IRN, onto the IRP. This ensures that the invoice is digitally recorded in the system.
  • Step 4. IRP Validation
    The IRP validates the uploaded data and confirms that there are no duplicates in the Central Registry of GST. After validation, the system authenticates and finalises the IRN as the unique identity for that invoice during the financial year.
  • Step 5. QR Code and Digital Signature Generation|
    Once validated, the IRP generates a QR code and digitally signs the invoice. The QR code includes details such as:
    • Supplier’s GSTIN
    • Recipient’s GSTIN
    • Invoice number and date
    • Invoice value
    • Number of line items
    • Main item HSN code
    • Unique IRN
  • Step 6. Data Transmission
    The authenticated e-invoice data is automatically shared with the GST system and the e-way bill portal. This data helps auto-populate GST returns and facilitates seamless compliance.
  • Step 7. E-invoice Receipt Sent to Supplier
    Finally, the IRP sends the validated JSON file, IRN, and QR code back to the supplier’s ERP. The supplier then shares the e-invoice with the buyer, usually via email.

A standardised e-invoicing format ensures smooth data sharing, minimises errors, and enhances compliance efficiency. It simplifies reconciliation, reduces chances of tax evasion, and offers an eco-friendly, paperless solution.

Conclusion

The implementation of GST e-invoicing marks a significant advancement in India's digital taxation framework, offering numerous benefits such as enhanced efficiency, improved compliance, and reduced transaction costs. By automating and standardising the invoice process, businesses can ensure accuracy, speed up their billing cycles, and enhance transparency across all transactions. This not only aids in better tax administration but also fosters a trustworthy business environment. As companies adapt to this system, they may need to upgrade their technological infrastructure, for which a business loan can provide the necessary financial support, ensuring smooth and efficient integration into their operations.

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Frequently asked questions

How do I create an e-invoice step by step?
To create an e-invoice, first prepare the invoice using your ERP system, ensuring all mandatory details like supplier and buyer information, transaction details, and tax calculations are included. Then, upload this data to the invoice registration portal (IRP) to generate a unique invoice reference number (IRN) and QR code, which are then attached to the invoice for authenticity.
How do I generate an e-way bill if an e-invoice is generated?

When an e-invoice is generated and includes all necessary details for transportation of goods, an e-way bill can be automatically generated through the invoice registration portal (IRP). Simply ensure that the transport details such as vehicle number and transport document number are included in the e-invoice submission to the IRP, which will then facilitate the generation of the e-way bill.

How do I create an e-invoice for a bill to ship?
To create an e-invoice for a bill-to-ship scenario, first prepare the invoice including both the 'bill-to' and 'ship-to' addresses, alongside other mandatory transaction details like product descriptions and tax information, using your ERP system. Then upload this invoice data to the invoice registration portal (IRP) to generate the necessary invoice reference number (IRN) and QR code, ensuring the document meets all regulatory requirements for both billing and shipping.
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