E-Invoicing in India: Who Needs It, the ₹5 Crore Threshold and How IRN + QR Code Work

E-invoicing does not mean “sending a PDF by email”. It is a system where every B2B invoice is first reported to the government’s Invoice Registration Portal (IRP), which validates it, assigns a unique Invoice Reference Number (IRN) and returns a signed QR code that must appear on the invoice.

Since 1 August 2023 (Notification 10/2023-CT amending Notification 13/2020-CT), e-invoicing is mandatory for every registered person whose aggregate turnover exceeded ₹5 crore in any financial year from 2017-18 onwards — once you cross it, the obligation is permanent.

How the threshold works

• The test is aggregate turnover across all GSTINs under one PAN, looking at any FY since 2017-18.
• Cross ₹5 crore once → e-invoicing applies forever after, even if turnover later drops.
• Applies to B2B supplies (to registered persons), exports, and deemed supplies like supplies to SEZ units; B2C invoices are not e-invoiced (yet).

Who is exempt even above ₹5 crore

• Special Economic Zone units (not SEZ developers’ general suppliers — note the nuance).
• Insurers, banking companies, non-banking financial companies, government departments and local authorities.
• Goods transport agencies (GTA) transporting passengers, and passenger transport service suppliers.
• Suppliers of cinema tickets (specific document type) and certain service categories notified from time to time.

What the IRP actually does

1. Your billing software (or portal bulk tool) builds a JSON with invoice fields: GSTINs, HSN, values, tax split.
2. The JSON is sent to an IRP (NIC IRP or one of the private IRPs). It validates the data against GST records.
3. The IRP returns a 64-character hash IRN and a digitally signed QR code containing the key invoice fields.
4. You print the IRN + QR code on the invoice. The data also auto-populates the buyer’s GSTR-2B — no manual entry needed.

An invoice without a valid IRN is treated as not issued in the prescribed manner: penalties run at ₹10,000 per invoice or the tax involved, whichever is higher — and your buyer’s credit is at risk.

Getting started — the practical checklist

• Register on the e-invoice portal (einvoice1.gst.gov.in) with your GSTIN and create API credentials.
• Confirm your billing/ERP software is e-invoice compliant (most Indian billing tools are; check for IRP integration).
• Decide how to handle credit notes and debit notes — they too need IRNs when related to e-invoiced supplies.
• Train the billing team on error codes (GSTIN mismatch, HSN validation) — most rejections are data-entry issues.
• Keep a master of HSN codes with the new GST 2.0 rates loaded, so e-invoices carry correct tax values from day one.

Businesses just below ₹5 crore often adopt e-invoicing voluntarily — it pre-populates buyers’ credit data, cuts disputes, and smooths the transition when the threshold is finally crossed.

Frequently Asked Questions