E-Invoicing Under GST: Applicability, IRN, 30-Day Time Limit, Cancellation and Penalty

E-invoicing under GST is mandatory for registered businesses whose aggregate turnover exceeded Rs 5 crore in any year since 2017-18. Each B2B invoice is reported to the Invoice Registration Portal, which returns an IRN and a QR code.

Taxpayers with turnover of Rs 10 crore or more must report within 30 days of the invoice date. Below: who must comply, the time limit, how the process works, cancellation, penalty and common errors.

What Is E-Invoicing Under GST?

E-invoicing is a process in which a B2B invoice is uploaded to the Invoice Registration Portal (IRP), validated and returned with a unique Invoice Reference Number (IRN) and a signed QR code. You still create the invoice in your own software.

The invoice particulars are uploaded in Form GST INV-01 under Rule 48(4) of the CGST Rules, 2017. The data then flows to the GST portal for GSTR-1 and to the e-way bill system.

Who Must Issue E-Invoices?

Registered persons whose aggregate turnover exceeded Rs 5 crore in any financial year from 2017-18 onwards must issue e-invoices. The Rs 5 crore limit has applied since 1 August 2023.

Turnover is counted across all GSTINs under the same PAN. Once you cross the limit, e-invoicing applies from the next financial year and stays even if turnover later falls.

The notified exclusions include insurers, banks and other financial institutions, goods transport agencies, passenger transport services, cinema admission services, SEZ units, government departments and local authorities. The exact scope comes from the applicable CBIC notifications, so check current notifications before relying on an exemption.

Who Is Exempt from E-Invoicing?

E-invoicing does not apply to every registered business or every document. The CGST Rules and CBIC notifications exclude specified taxpayer classes, document types and transactions.

Some exceptions depend on the taxpayer class and the transaction together. A business above the turnover threshold should confirm the exact notification that applies to its GSTIN and invoice type.

E-Invoice Time Limit: The 30-Day Reporting Rule

Taxpayers with aggregate turnover of Rs 10 crore or more must report covered invoices to an IRP within 30 days of the invoice date. GSTN announced this reporting limit for invoices dated on or after 1 April 2025.

An invoice reported after the window cannot receive an IRN through the IRP. The 30-day limit is separate from the Rs 5 crore threshold that determines who must issue e-invoices.

The GST e-Invoice portal publishes IRP advisories and enablement information. Confirm the turnover band and reporting rules there before configuring an ERP deadline.

How E-Invoicing Works

Your software creates the invoice, sends the invoice data to the IRP, and receives the signed invoice with the IRN and QR code in return. The IRP then shares the data with the GST portal and the e-way bill system.

What Are the IRN and the QR Code?

The IRN is a unique 64-character hash generated by an IRP after it validates a reported invoice. The signed QR code carries key details that let a recipient verify the e-invoice offline.

An IRN is different from the supplier's invoice number. The invoice number is assigned in the supplier's books; the IRN is returned by the IRP and linked to the invoice's GSTIN, document number, financial year and document type.

What Details Must an E-Invoice Contain?

An e-invoice uses the GST invoice schema, submitted as structured data to the IRP. The required fields depend on the document and transaction; do not rely on a fixed count of mandatory fields.

The e-invoice is created in the supplier's accounting or ERP system, then reported using the prescribed JSON schema. The supplier still issues the invoice; the IRP registers and authenticates its particulars.

Check the tax split for a taxable value with the GST Calculator before sending the invoice data to the IRP.

Can You Cancel an E-Invoice?

You can cancel an e-invoice on the IRP only within 24 hours of generating the IRN. After that window, the IRP will not accept cancellation; correct the transaction through the applicable GST return process, which may include a credit or debit note.

Penalty for Not Issuing an E-Invoice and the ITC Impact

Section 122 of the CGST Act provides a penalty of Rs 10,000 or the tax evaded, whichever is higher, for a supply made without the required invoice. The applicable consequence depends on the facts and the relevant provision; goods in transit may also be detained under GST law.

An invoice without a valid IRN is not a valid tax invoice where e-invoicing is mandatory. Your buyer may be unable to claim input tax credit, which can strain the business relationship.

Benefits of E-Invoicing

E-invoicing auto-populates your GSTR-1, supports e-way bill generation and cuts the keying errors that cause ITC mismatches. It also gives the tax department a record of B2B invoices in real time.

The GSTR-9 annual return guide explains how these invoices tie into the yearly reconciliation.

Common E-Invoicing Errors and Challenges

Most rejections come from small data mismatches, such as a wrong buyer GSTIN or a duplicate invoice number. Software that does not follow the e-invoice schema adds JSON errors.

The GST number search guide shows how to verify a buyer GSTIN, and the GST rates guide helps with the rate mapping.

E-Invoice vs E-Way Bill

An e-invoice registers the sale on the IRP, while an e-way bill records the movement of goods. They are linked, because an e-invoice can generate Part A of the e-way bill.

The e-way bill guide covers the value limit, validity and penalties for goods in transit.

How to Generate an E-Invoice

Most businesses generate e-invoices from accounting software through an API, and small volumes can use the IRP web tool. The steps are the same either way.

Frequently Asked Questions: E-Invoicing Under GST