What is GST e-invoicing in India?
GST e-invoicing is a system where B2B invoices are electronically reported to a government Invoice Registration Portal (IRP) before being issued to the buyer. The IRP validates the invoice, assigns a unique Invoice Reference Number (IRN) and returns a digitally signed QR code that must appear on the final invoice. You do not create invoices on a government portal — you generate them in your own accounting software, which registers each one with the IRP in real time.
E-invoicing was introduced to curb tax evasion and automate compliance: once an invoice carries an IRN, its details auto-populate the seller's GSTR-1 return and can generate the e-way bill, removing duplicate data entry across systems.
Who must comply — e-invoice turnover limits
E-invoicing applies to businesses whose aggregate annual turnover (AATO) crossed the notified threshold in any financial year since 2017-18. The threshold has been lowered in phases, pulling in progressively smaller businesses:
India e-invoicing rollout by turnover threshold
| Effective date | AATO threshold | Notification context |
|---|
| 1 Oct 2020 | Above ₹500 crore | Initial mandate for the largest taxpayers |
| 1 Jan 2021 | Above ₹100 crore | First expansion |
| 1 Apr 2021 | Above ₹50 crore | Second expansion |
| 1 Apr 2022 | Above ₹20 crore | Third expansion |
| 1 Oct 2022 | Above ₹10 crore | Fourth expansion |
| 1 Aug 2023 | Above ₹5 crore | Current threshold |
Since 1 April 2025, taxpayers with AATO of ₹10 crore or more must report invoices to the IRP within 30 days of the invoice date. Verify current thresholds on the GSTN portal.
What a compliant GST invoice needs
- IRN and signed QR code from the IRP on every B2B invoice, credit note and debit note
- Correct HSN/SAC codes — 4 or 6 digits depending on turnover
- CGST/SGST/IGST split applied correctly based on place of supply
- GSTIN of both parties validated at billing time
- E-way bill linkage for goods movement above ₹50,000
- GSTR-1 consistency — reported invoice data must match with returns
Penalties for non-compliance
Issuing a B2B invoice without an IRN when e-invoicing applies means the document is not a valid tax invoice. Consequences include a penalty of 100% of the tax due or ₹10,000 per invoice (whichever is higher) for non-issuance, ₹25,000 per invoice for incorrect e-invoicing, and — commercially most damaging — your buyers may be unable to claim input tax credit, which quickly costs you the customer relationship.
How to choose GST accounting software
When evaluating GST software, look beyond invoice generation:
- Direct, real-time IRP integration (no manual JSON uploads)
- Automatic GSTR-1 preparation from registered invoices
- E-way bill generation from the same document
- Multi-GSTIN support if you operate in several states
- Complete books behind the invoice — accounts, stock, receivables — so returns match to accounts
- An audit trail that satisfies MCA and GST audit requirements
PeppyBooks covers all of the above in one subscription, with inventory, CRM and payroll included — see the pricing plans or start a free 14-day trial.