An e-invoice is a normal GST invoice that is reported to the Invoice Registration Portal (IRP) when it is raised. The IRP checks it, gives it an Invoice Reference Number (IRN) and a signed QR code, and passes the details to the GST and e-way bill systems. An invoice that needed an IRN and does not have one is not a valid invoice, and the buyer cannot claim credit on it.
01Who must issue e-invoices
Since 1 August 2023, every business whose aggregate turnover crossed ₹5 crore in any financial year from 2017-18 onwards must issue e-invoices for:
- sales to registered businesses (B2B),
- exports, and
- credit and debit notes on these.
Sales to consumers (B2C) are outside e-invoicing. A few kinds of business, such as banks, insurers, and passenger transport, are exempt. Once you cross the limit in any year, the duty stays even if turnover falls later.
02The 30 day limit
Businesses with aggregate turnover of ₹10 crore or more cannot report an invoice to the IRP more than 30 days after its date. The IRP will reject it. So e-invoicing has to happen when you bill, not at month end when the accountant catches up.
03Two ways to get the IRN
Billing software can report each invoice to the IRP directly, through a GST Suvidha Provider. Or it can prepare the invoice file in the IRP's format, which you upload on the e-invoice portal, one invoice at a time or in bulk. Both give the same IRN and signed QR code. What the law cares about is that the IRN is on the invoice when you issue it.
04Fitting it into daily work
- Get masters right first. Wrong GSTINs, missing HSN codes and wrong state codes are the usual reasons the IRP rejects an invoice.
- Get the IRN on the day you bill, not at month end, so the invoice is valid when the goods leave.
- Print the QR code on the invoice copy that travels with the goods.
- Create the e-way bill from the IRN when goods move, adding the vehicle number.
- Cancel within 24 hours if needed. After that, a credit note is the way to correct a mistake.
05For plants and branches
Each GSTIN is its own taxpayer for e-invoicing. A company with plants in Gujarat and Maharashtra reports invoices from each state's registration separately, and stock transfers between those registrations are also e-invoiced when they are taxable supplies. See stock transfer between plants.
In MatruOS, e-invoices run in portal mode: MatruOS prepares the exact file the IRP takes from the saved invoice, after your approval. You upload it on the portal, and the IRN and QR code it returns are recorded against the invoice. The e-way bill file is prepared from the same invoice. A direct portal connection is being set up.