e-Invoice and e-Way Bill in GST: Applicability, Generation, QR Code & Cancellation

What is e-Invoice (Electronic Invoice)?

e-Invoicing is a system where B2B invoices generated by a taxpayer are reported to the Invoice Registration Portal (IRP) in real-time. The IRP validates the invoice and returns a unique IRN (Invoice Reference Number) along with a digitally signed QR code. This IRN-stamped invoice is the legally valid e-Invoice.

e-Invoicing was introduced to reduce fake invoice fraud and improve the speed of ITC reconciliation. Since e-Invoice data flows directly to GSTR-1 and GSTR-2B, it eliminates manual data entry errors.

Who Must Issue e-Invoices?

Aggregate Turnover	Applicability Date
Above ₹500 crore	1 October 2020
Above ₹100 crore	1 January 2021
Above ₹50 crore	1 April 2021
Above ₹20 crore	1 April 2022
Above ₹10 crore	1 October 2022
Above ₹5 crore	1 August 2023

Exempted from e-Invoicing (even above threshold)

• Banking, financial services, and insurance companies (BFSI)
• Goods Transport Agencies (GTA)
• Passenger transportation services
• Multiplex cinema operators
• Composition dealers
• Special Economic Zone (SEZ) units (applicable to SEZ developers)
• B2C invoices (only B2B and export invoices require IRN)

How IRN is Generated

1. Prepare the invoice in your accounting/ERP system in the standard JSON schema (GSTN e-Invoice schema v1.1).
2. Upload to IRP (Invoice Registration Portal — five authorized IRP portals are available including the NIC IRP at einvoice1.gst.gov.in).
3. IRP validates the data — checks GSTIN, invoice number uniqueness, HSN codes, tax calculation.
4. IRP generates a unique IRN (a 64-character SHA-256 hash of GSTIN + Document type + Document number + Financial year).
5. IRP returns the IRN, Acknowledgement Number (Ack No), Ack Date, and a digitally signed QR code.
6. You print the QR code on the physical invoice — this is mandatory.

The e-Invoice QR Code

The QR code contains 8 mandatory fields in pipe-separated format:

SellerGSTIN~BuyerGSTIN~DocNo~DocDate~TotalValue~ItemCount~MainHSN~IRN~AckNo~AckDate

Any GST officer or buyer can scan this QR to verify the invoice's authenticity against the IRP database.

Auto-Push to GSTR-1

Once an IRN is generated, the invoice data is automatically pushed to the seller's GSTR-1 in Tile 4 (B2B). The entry shows "Source: e-Invoice" and the IRN and IRN date columns are populated. You cannot manually edit such entries in GSTR-1 — they can only be modified by cancelling the IRN first.

IRN Cancellation

• An IRN can be cancelled only within 24 hours of generation.
• If an e-Way Bill is attached to the IRN, the EWB must be cancelled first.
• After 24 hours, the invoice cannot be cancelled via IRP — you must issue a credit note instead.
• Cancelled IRNs are removed from GSTR-1 Tile 4 and any associated e-Way Bill is also cancelled.

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What is an e-Way Bill (EWB)?

An e-Way Bill is an electronic document required for the movement of goods valued above ₹50,000 (consignment value including GST). It must be generated before the goods leave the place of dispatch and must accompany the goods during transit.

Who Must Generate an e-Way Bill?

• Consignor (seller/supplier) — when dispatching goods
• Consignee (buyer/recipient) — if the consignor doesn't generate it
• Transporter — if neither party generates it

Exemptions: No e-Way Bill required for goods exempt under Notification 2/2017-CT(R) (like fresh vegetables, milk, eggs, postal baggage), or for movements within 50 km (intra-state) under certain conditions.

e-Way Bill Validity

Distance	Validity
Up to 200 km	1 day
Every additional 200 km	+1 day
Over-dimensional cargo	1 day for every 20 km

Validity starts from the time of generation. If goods cannot be delivered within validity, the transporter or consignor can extend it within 8 hours of expiry (4 hours before + 4 hours after).

e-Way Bill QR Code

The EWB QR code contains:

EWB:{ewb_number}|Invoice:{invoice_number}|Valid:{validity_date}

e-Way Bill Cancellation

• Can be cancelled within 24 hours if goods have not been verified by a tax officer in transit.
• Cannot be cancelled after the validity expires.
• Cancelling an invoice also cancels the associated e-Way Bill.

Link Between e-Invoice and e-Way Bill

When generating an IRN, you can simultaneously generate an e-Way Bill by providing the transporter ID and vehicle number in the e-Invoice JSON. The EWB number is embedded in the IRN response. This single-window approach eliminates double data entry.

Practice e-Invoice and e-Way Bill on IndIaTaxSim

IndIaTaxSim provides a complete e-Invoice and e-Way Bill simulation:

• e-Invoice: Generate IRN with Ack No, view the signed JSON, print the QR-embedded invoice, cancel within 24h simulation, bulk upload up to 10 invoices at once
• e-Way Bill: Generate EWB from the portal or auto-generate from invoice, print EWB with QR, cancel, view outward/inward EWBs
• GSTR-1 integration: Generated IRNs auto-populate GSTR-1 Tile 4 — just like the real portal

All of this is available in the guided course (Module Groups: e-Invoice, e-Way Bill) with step-by-step instructions matching the real portal workflow.