E-Invoicing in India: GST IRN and IRP Requirements
Author
Shamyudha
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Since 2020, India's Goods and Services Tax (GST) has made large suppliers clear B2B invoices on a government portal. For e-invoicing in India, the Central Board of Indirect Taxes and Customs (CBIC) sets the rules and Invoice Registration Portals (IRPs) register invoices.
Since August 1, 2023, businesses with aggregate turnover above ₹5 crore in any financial year since 2017-18 must e-invoice B2B, B2G and export supplies. Each invoice and credit or debit note goes to an IRP for an Invoice Reference Number (IRN) and signed QR code. From January 1, 2027, reverse-charge self-invoices and imported services are also covered.
Latest news
Embeds a monitoring pages group for this blog article
{{__MONITORING_PAGES_GROUP:blog_articles_620__}}On October 26, 2026, CBIC issued Notification No. 04/2026-Central Tax. From January 1, 2027, businesses above ₹5 crore must also e-invoice self-invoices for reverse-charge purchases from unregistered suppliers and imported services. The 57th GST Council meeting recommended this, so map those flows now.
Mandatory Ship-to GSTIN and voluntary e-way bill closure, planned for August 1, 2026, are on hold until further notice. The Goods and Services Tax Network (GSTN) paused them on July 29, 2026, so production systems need no changes.
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What is e-invoicing and why has India adopted it?
E-invoicing means exchanging invoices as structured data systems validate automatically.
India uses a clearance model: under Rule 48(4) of the CGST Rules, suppliers upload FORM GST INV-01 JSON data and get an IRN before invoicing. That data pre-fills GST returns and e-way bills.
The evolution of e-invoicing in India
[INFOGRAPHIC: timeline, made in Grokbot with DDD branding. ALT: Timeline of India's GST e-invoicing phases from the 2020 launch to the 2027 scope expansion]
- October 1, 2020: e-invoicing starts above ₹500 crore under Notification No. 61/2020-Central Tax.
- 2021 to 2023: five cuts reach ₹5 crore on August 1, 2023, under Notification No. 10/2023-Central Tax.
- April 1, 2025: the 30-day reporting limit extends to turnover of ₹10 crore or more.
- January 1, 2027: reverse-charge self-invoices and imported services join, as the 57th GST Council recommended.
B2G e-invoicing in India
B2G e-invoicing is mandatory on B2B terms via the same IRPs. Circular No. 198/10/2023-GST treats government bodies and PSUs registered only for tax deduction at source as registered buyers.
Government departments and local authorities need not issue e-invoices under Notification No. 23/2021-Central Tax. Buyers can verify IRNs on the e-invoice portal.
B2B e-invoicing in India
B2B e-invoicing is mandatory above ₹5 crore aggregate turnover under Notification No. 10/2023-Central Tax. The test covers any financial year since 2017-18 under Notification No. 70/2020-Central Tax. Section 2(6) of the CGST Act adds turnover across all GSTINs under one PAN.
Scope covers supplies to registered buyers and SEZ units, exports, reverse-charge supplies, and credit and debit notes. Exempt suppliers are insurers, banks, financial institutions, goods transport agencies, passenger transport, multiplex cinemas and, under Notification No. 61/2020-Central Tax, SEZ units.
Under Rule 48(5), an in-scope invoice without an IRN is not an invoice, so the buyer gets no input tax credit (ITC).
Taxpayers with turnover of ₹10 crore or more must report each document within 30 days of its date. A GSTN advisory has enforced this since April 1, 2025.
The IRP returns the IRN and signed QR code and pre-fills GSTR-1, whose saved records reach the buyer's Invoice Management System (IMS).
- Register: check enablement and set up two-factor authentication (2FA).
- Connect: use the IRP website, direct API or ERP integration.
- Test: run invoices, notes, cancellations and e-way bills in a sandbox.
B2C e-invoicing in India
B2C e-invoicing is not mandatory, and invoices to unregistered buyers get no IRN.
Since December 1, 2020, Notification No. 14/2020-Central Tax, as amended, has required suppliers above ₹500 crore turnover to print a dynamic QR code on B2C invoices. Insurers, banks, transport operators, multiplex cinemas and overseas online (OIDAR) suppliers are excluded.
With no fiscal devices, point-of-sale systems need compliant GST invoices.
E-reporting and VAT compliance
India has periodic e-reporting: GSTR-1 lists B2B supplies invoice by invoice, pre-filled from IRP data. GSTR-1 is due by the 11th of the next month, or the 13th after each quarter, per GSTN's GSTR-1A FAQ. Since September 22, 2025, the main GST rates are 5% and 18%, with 40% for select items.
IRNs can be cancelled in full within 24 hours, never partly. After that, issue a credit or debit note with its own IRN, or amend the record in GSTR-1A before GSTR-3B. Keep records for 72 months from the annual return due date under Section 36 of the CGST Act, in compliance-ready storage.
Penalties for non-compliance
Fines range from up to ₹25,000 under Section 125 to ₹10,000 or the tax evaded, whichever is higher, under Section 122 of the CGST Act.
Offence | Fine |
|---|---|
Supplying without a valid invoice, or with a false one | ₹10,000 or the tax evaded, whichever is higher (Section 122(1)) |
Breaches with no set penalty, like a missing B2C dynamic QR code | Up to ₹25,000 (Section 125) |
If NIC IRPs fail, GSTN's business continuity advisory allows any other authorised IRP.
Your trusted partner for e-invoicing
Since e-invoicing is mandatory above ₹5 crore turnover and reverse-charge self-invoices follow on January 1, 2027, in-scope businesses need IRN-ready billing.
DDD Invoices links your ERP to a single API that validates your data and helps you issue, receive and archive invoices in 30+ countries. India is still collecting interest on our country coverage list, and every request from Indian businesses helps us prioritise it.
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FAQs
What is the e-invoice limit in India?
E-invoicing applies to GST-registered businesses with aggregate turnover above ₹5 crore in any financial year since 2017-18. Turnover counts every GSTIN under one PAN, and banks and insurers are among exempt suppliers.
When must e-invoices reach the IRP?
Taxpayers with turnover of ₹10 crore or more must report each document within 30 days of its date. The IRP has enforced this since April 1, 2025, and smaller taxpayers face no such limit.
How do you cancel an e-invoice in India?
Cancel the IRN in full on the IRP within 24 hours, because partial cancellation is not allowed. Later, issue a credit or debit note with its own IRN, or amend the record in GSTR-1A.
Why is an invoice without an IRN invalid?
Rule 48(5) of the CGST Rules says an in-scope invoice issued without an IRN is not an invoice. The buyer cannot claim input tax credit on it, and the supplier risks penalties.