E-invoicing doesn't mean making a PDF — it means registering each B2B invoice with the government's Invoice Registration Portal (IRP) and getting a unique IRN before sharing it. Here's who it applies to and how it works.
Who must generate e-invoices?
Businesses whose aggregate turnover crossed ₹5 crore in any financial year since 2017-18 must generate e-invoices for all B2B supplies, exports, and credit/debit notes. B2C invoices are excluded (though B2C QR-code requirements apply to very large businesses).
How e-invoicing works
- You create the invoice in your billing software as usual.
- The invoice data (JSON) is sent to the IRP.
- The IRP validates it, generates a unique Invoice Reference Number (IRN) and a signed QR code.
- The QR code and IRN must appear on the invoice you give the buyer.
- The data auto-flows into your GSTR-1 and the buyer's GSTR-2B.
Exemptions
- Banks, insurers, NBFCs
- Goods Transport Agencies (GTA)
- Passenger transport services
- Cinema admission (multiplexes)
- SEZ units (though SEZ developers are covered)
Penalty for not e-invoicing
An invoice issued without a required IRN is treated as an invalid invoice — penalty of ₹10,000 per invoice or 100% of the tax due, whichever is higher, and your buyer's input tax credit is at risk. That last part is what makes B2B customers refuse to deal with non-compliant suppliers.
Under the limit? Prepare anyway
The threshold has dropped steadily (₹500cr → ₹100cr → ₹50cr → ₹20cr → ₹10cr → ₹5cr). If your business is growing, choose billing software that's e-invoice ready. BizGST Pro tracks your invoices in a structured format so the transition is smooth when you cross the limit.