—Guide
GST E-invoicing in India: Who Must Comply, IRN and the 30-day Rule
Who has to generate e-invoices under GST, how the IRN and QR code work, the 30-day reporting rule for larger businesses, and common mistakes.
E-invoicing under GST means reporting business-to-business invoices to a government portal, which validates them and returns a unique reference number. For businesses above the threshold, an invoice without it isn't valid. This guide explains the rules.
Who Must Comply
Businesses whose aggregate turnover exceeded ₹5 crore in any financial year from 2017-18 onwards must generate e-invoices. It applies to:
- Supplies to registered businesses (B2B).
- Exports.
- Supplies to SEZ units and developers.
- Debit and credit notes for these supplies.
It doesn't apply to supplies to unregistered customers, though larger businesses have separate QR code requirements for those.
Exempt Sectors
Certain sectors are exempt, including banks and financial institutions, insurance companies, goods transport agencies, passenger transport services, and SEZ units themselves.
How It Works
- You prepare the invoice in your system in the prescribed format.
- It's uploaded to the Invoice Registration Portal.
- The portal validates it and returns an Invoice Reference Number (IRN) and a signed QR code.
- You print the IRN and QR code on the invoice issued to the customer.
- The data flows into your GSTR-1 automatically.
The 30-day Rule
Businesses with aggregate turnover of ₹10 crore or more must report invoices to the portal within 30 days of the invoice date. Invoices older than that can't be reported, which can mean the supply isn't validly invoiced.
Cancellations and Corrections
An IRN can be cancelled within a short window after generation. After that, corrections are made through credit or debit notes.
Once It Applies, It Stays
Once your turnover crosses the threshold in any year, e-invoicing continues to apply even if turnover later falls.
Common Mistakes
- Not noticing when turnover crosses ₹5 crore.
- Issuing invoices before generating the IRN.
- Missing the 30-day window for backdated invoices.
- Wrong HSN codes or customer GSTINs, causing rejections.
Getting Help
Think Filing sets up e-invoicing, integrates it with your accounting system, and reconciles it with your returns.