What is E-Invoicing in GST?
E-Invoicing is a digital system where business invoices are authenticated in real-time by the GST Network (GSTN) before use. Each valid invoice gets a unique IRN (Invoice Reference Number) and QR code, making transactions more transparent and reducing tax fraud.
Who Needs to Generate E-Invoices? (2025 Rules)
- Businesses with ₹5 crore+ annual turnover (B2B & export transactions)
- Suppliers to government agencies (if notified)
- Exporters & SEZ suppliers
How to Generate an E-Invoice? (Step-by-Step Process)
Step 1: Prepare Your Invoice Correctly
Ensure your invoice includes:
✔ Supplier & buyer GSTIN
✔ Invoice number & date
✔ Item details (HSN/SAC code, quantity, taxable value)
✔ CGST/SGST/IGST breakup
✔ Place of supply
Step 2: Generate IRN (Invoice Reference Number)
Manual Upload on GST Portal
- Log in to the GST e-invoice portal
- Select “Generate IRN”
- Enter invoice details manually
- Submit → System generates IRN & QR code
Step 3: Add IRN & QR Code to Invoice
- Print the QR code on the invoice copy
- Mention the 64-character IRN in the invoice header
Step 4: Report in GSTR-1
- E-invoice data auto-populates in GSTR-1
- Verify details before final submission
Key Benefits of E-Invoicing
- Eliminates manual errors in GST returns
- Speeds up Input Tax Credit (ITC) claims
- Reduces GST notices (due to real-time data matching)
- Simplifies audits(QR code allows instant verification)
Common E-Invoicing Mistakes to Avoid
- Incorrect GSTIN→ Invoice rejection
- Missing mandatory fields(e.g., HSN code, place of supply)
- Not generating IRN before issuing invoice→ Penalty ₹10,000 per invoice
- Late IRN generation(must be done before or at the time of supply)
Conclusion
E-Invoicing under GST ensures faster compliance, fewer errors, and smoother audits. Follow these steps:
1. Prepare invoices with correct details
2. Generate the IRN before issuing
3. Report in GSTR-1 for auto-matching.