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
- Prepare the invoice in your accounting/ERP system in the standard JSON schema (GSTN e-Invoice schema v1.1).
- Upload to IRP (Invoice Registration Portal — five authorized IRP portals are available including the NIC IRP at einvoice1.gst.gov.in).
- IRP validates the data — checks GSTIN, invoice number uniqueness, HSN codes, tax calculation.
- IRP generates a unique IRN (a 64-character SHA-256 hash of GSTIN + Document type + Document number + Financial year).
- IRP returns the IRN, Acknowledgement Number (Ack No), Ack Date, and a digitally signed QR code.
- 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.
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.
IndIaTaxSim Team
GST compliance experts building India's most complete GST simulation platform. All articles are reviewed for accuracy against the latest GSTN portal updates.