The GST ( Goods and Services Tax ) E-invoice reporting is mandatory for businesses with Annual Aggregate Turnover ( AATO ) Rs. 5 crore and above. ‘e-Invoicing’ means reporting details of specified GST documents to a Government-notified portal i.e., Invoice Registration Portal (IRP) and obtaining an invoice reference number.
E-invoicing refers to the process of reporting details of specified GST documents to a government-designated platform known as the IRP. Upon successful reporting, an Invoice Reference Number (IRN) is generated. Importantly, e-invoicing does not imply that invoices are created by a government portal.
Under the e-invoicing system, taxpayers continue to generate GST-compliant invoices using their own accounting, billing, or ERP software. These invoices are then uploaded to any of the six authorized IRPs in a standardized format, known as the “Schema” (notified as Form GST INV-1). The IRPs validate the data and generate the IRN at no cost to taxpayers.
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The taxpayers with an aggregate turnover exceeding the specified threshold (calculated on a PAN basis) in any financial year since 2017-18, as per the relevant notifications, are mandated to adopt e-invoicing. Currently, this requirement applies to businesses with an aggregate turnover of ₹5 crore or more, effective from August 1, 2023.
According to Rule 48(4), the following classes of people are exempt from the e-invoice mandate and need not generate an e-invoice under GST.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
i. Taxpayers will generate GST invoices using their own accounting, billing, or ERP systems.
ii. The generated invoices must be uploaded to any of the six authorized Invoice Registration Portals (IRPs).
iii. Upon successful reporting, the IRP validates the invoice and returns a digitally signed e-invoice, complete with a unique IRN and a QR Code.
iv. The finalized invoice, including the QR Code, can then be issued to the recipient. For B2B transactions, a GST invoice is valid only if it includes a valid IRN.
i. Taxpayers eligible for e-invoicing, as per government notifications, are automatically enabled to report e-invoices on any of the six authorized Invoice Registration Portals ( IRPs ).
ii. The enablement status can be verified at https://einvoice.gst.gov.in.
iii. If an eligible taxpayer is not enabled for e-invoicing, they can self-enable through the same portal.
iv. Note that being marked as “enabled” on the e-invoice portal does not automatically impose a legal obligation to adopt e-invoicing. This enablement ensures that only taxpayers meeting the notified turnover thresholds can register and test/report invoices on the IRPs.
The Invoice Registration Portal ( IRP ) serves as the platform for uploading and reporting invoices by notified taxpayers. Currently, six IRPs have been authorized for e-invoice reporting. These portals provide free services for generating Invoice Reference Numbers ( IRN ) and submitting e-invoices.
The list of authorized IRPs is as follows:
Taxpayers must first register on any of these portals before they can begin reporting e-invoices. The registration process includes a one-time verification of the taxpayer’s mobile number and email via OTP. After successful verification, login credentials are created, allowing the taxpayer to start reporting e-invoices.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
i. To obtain an IRN for their e-invoices, taxpayers must upload e-invoice data on the IRP portal, adhering to the predefined INV-01 schema in JSON format.
ii. IRPs offer multiple methods for reporting e-invoices, including offline tools, online web tools, mobile apps, and API-based solutions.
iii. The schema and portal include built-in validations to prevent duplicate reporting and ensure accuracy.
iv. Once the data is successfully validated, the IRP returns a digitally signed e-invoice, complete with a unique IRN and QR code.
v. A copy of the signed e-invoice is then automatically shared with the GST system for inclusion in the supplier’s GSTR-1 return.
vi. The e-invoice with the IRN and QR code details is issued to the buyer.
Taxpayers have several options to verify the IRN of an e-invoice:
i. They can use the GSTN e-Invoice QR Code Verifier app, available on Google Play and the App Store, to verify e-invoices reported on any of the IRPs.
ii. Alternatively, taxpayers can utilize the “Search IRN” feature at https://einvoice.gst.gov.in/einvoice/search-irn to verify the IRN.
i. With the expansion of IRP portals to six, GSTN has launched an e-invoice master information portal, accessible at https://einvoice.gst.gov.in.
ii. This portal serves as a one-stop hub for all e-invoicing-related information, including access to master codes, enablement status checks, IRN search functionality, details about all authorized IRPs with links to their respective portals, the e-invoice schema, and more.
iii. In the near future, the portal is also expected to offer the functionality to download e-invoices.
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