Official Source
CBIC Notification
The Central Board of Indirect Taxes and Customs (CBIC) has notified that e-invoicing under GST is now mandatory for all businesses with aggregate annual turnover (across all GSTINs) exceeding ₹5 crore in any preceding financial year from FY 2017-18 onwards.
Who Must Comply
Mandatory E-Invoicing for:
Exempted from E-Invoicing:
- ▸All businesses with PAN-based aggregate turnover > ₹5 crore
- ▸This covers manufacturers, traders, service providers, and exporters
- ▸E-commerce operators and their suppliers if aggregate turnover exceeds threshold
- ▸Banks, NBFCs, and financial institutions
- ▸GTA (Goods Transport Agencies) for services to unregistered persons
- ▸Passenger transportation services
- ▸Hospitality services (cinema, hotels, restaurants) — currently excluded
How E-Invoicing Works
- ▸Generate invoice in your ERP/accounting software with all mandatory fields
- ▸Upload the JSON to Invoice Registration Portal (IRP) — any of the 5 authorized IRPs
- ▸IRP validates, assigns IRN (Invoice Reference Number), QR code and digitally signs
- ▸Send the signed invoice (with IRN and QR code) to buyer
- ▸Invoice automatically flows to GSTR-1 — no separate upload needed
IRN and QR Code
Invoice Reference Number (IRN): A 64-character alphanumeric unique identifier generated by IRP
QR Code: Contains key invoice details — buyer GSTIN, invoice value, IRN, and digital signature
Both IRN and QR code are mandatory on every B2B invoice
Penalty for Non-Compliance
- ▸For invoices without valid IRN: ₹10,000 per invoice or 100% of tax due, whichever is higher
- ▸Input Tax Credit denied to buyer for non-e-invoice (ITC reversal required)
- ▸During initial compliance period, CBIC may provide some relaxation — but businesses should comply immediately
Implementation Steps
- ▸Register on any IRP portal (e.g., einvoice1.gst.gov.in)
- ▸Integrate ERP/accounting software with IRP via API or use the offline tool
- ▸Update invoice templates to include IRN and QR code fields
- ▸Train billing/accounts team on the new process
- ▸Test with a few dummy invoices before going live
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