What is e-invoicing?
Under GST, e-invoicing means reporting your B2B invoices to the government's Invoice Registration Portal (IRP) in a standard format. The IRP checks the invoice and returns a unique Invoice Reference Number (IRN) and a signed QR code, which you print on the invoice.
You still create invoices in your own billing or accounting software — e-invoicing is the step of registering them with the IRP.
Who needs to do it?
E-invoicing applies to businesses whose annual aggregate turnover is above the limit set by the GST Council. At the time of writing, that limit is ₹5 crore. Some categories of businesses are exempt.
Rules and limits do change, so confirm the current requirements on the GST portal or with your CA.
What do the IRN and QR code do?
- The IRN is a unique number that shows the invoice has been registered.
- The QR code lets anyone, including tax officers, quickly verify the invoice.
- Details from registered e-invoices flow into your GST returns, which reduces manual entry and mismatches.
How do e-way bills fit in?
An e-way bill is needed when you move goods above a certain value — generally ₹50,000, though some states have their own rules. When an e-invoice is generated, much of the information needed for the e-way bill is already available, so good software can create both together.
Common mistakes to avoid
- Wrong GSTIN, HSN code or tax rate on the invoice
- Missing the reporting time limits that apply to larger businesses
- Keeping invoices in one tool and accounts in another, so numbers don't match
- Issuing an invoice to a customer before it has been registered with the IRP
How software helps
Accounting software with built-in e-invoicing can generate the IRN and QR code from the invoice screen, create e-way bills, and keep your GST reports up to date. That removes copy-paste work and catches errors before they reach the portal.
The bottom line
E-invoicing sounds complicated, but day to day it's mostly about creating correct invoices in one place. Set up your masters (customers, items, HSN codes and tax rates) carefully once, and the rest becomes routine.