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📤 e-Invoice — GST Reference Notes

IndIaTaxSim · indiataxsim.com · Free Study Materials · For educational use only
1. What is e-Invoicing?

e-Invoicing (electronic invoicing) is a system where B2B invoices are registered with the Invoice Registration Portal (IRP) operated by the government. The IRP generates a unique Invoice Reference Number (IRN) and a digitally signed QR code for each registered invoice. e-Invoicing does NOT mean the government generates the invoice — the taxpayer still creates the invoice in their own system and then registers it with the IRP.

2. Who Must Generate e-Invoices? — Turnover Thresholds
Applicability DateAggregate Turnover Threshold
1 October 2020> ₹500 crore
1 January 2021> ₹100 crore
1 April 2021> ₹50 crore
1 April 2022> ₹20 crore
1 August 2023> ₹5 crore (current threshold)
ℹ️ Note
Aggregate turnover is calculated across all GSTINs under the same PAN for the previous financial year. A taxpayer newly crossing ₹5 crore must start e-invoicing from the first day of the month following the month in which the threshold is crossed.
3. Which Documents Need an IRN?
Document Typee-Invoice Required?Notes
B2B Tax InvoiceYESAll registered buyer supplies
B2B Credit NoteYESReduction in B2B invoice
B2B Debit NoteYESIncrease in B2B invoice
B2C InvoiceNOUnregistered buyer — no IRN needed
Export InvoiceYESExports are zero-rated B2B-equivalent
SEZ Supply InvoiceYESWith or without payment of tax
Bill of SupplyNOExempt supplies / Composition dealer
Delivery ChallanNONot a supply document
Who is EXEMPT from e-Invoicing (even if turnover > ₹5 crore):
•Banks, insurance companies, and NBFCs
•Goods Transport Agencies (GTA)
•Multiplex cinema operators
•Special Economic Zone (SEZ) units (not developers)
4. IRP (Invoice Registration Portal) Systems
IRPOperated ByURL
IRP-1NICeinvoice1.gst.gov.in
IRP-2NICeinvoice2.gst.gov.in
IRP-3GSTN (Cleartax partner)eivital.gst.gov.in
IRP-4Cygneteivital2.gst.gov.in
IRP-5NIC (main)einvoice5.gst.gov.in
IRP-6GSTN— (integrated within GSTN portal)

All IRP systems generate valid IRNs. Taxpayers can use any IRP — the generated IRN is interoperable and appears identically in GSTR-1.

5. IRN — How It Is Generated
🔢 Formula
IRN = SHA-256 Hash of: (Supplier GSTIN + Financial Year + Document Type + Document Number)
IRN is a 64-character hex string. It is unique and cannot be regenerated once cancelled.
Generation Process (Step by Step):
•Taxpayer prepares invoice in their ERP / accounting software
•Software generates an e-Invoice JSON as per GSTN schema (version 1.1)
•JSON is uploaded to IRP via API or manual upload
•IRP validates GSTIN details, checks for duplicate IRN
•IRP generates IRN, digitally signs the JSON, and returns:

— Signed JSON with IRN

— ACK number and ACK date

— Digitally signed QR code

•Taxpayer prints the QR code on the physical invoice
6. QR Code Content
Field in QR CodeDescription
Supplier GSTINSeller's 15-character GSTIN
Buyer GSTINPurchaser's 15-character GSTIN
IRN64-character Invoice Reference Number
ACK NumberAcknowledgement number from IRP
ACK DateDate of IRP acknowledgement
Document TypeINV / CRN / DBN
Document NumberInvoice / Credit Note / Debit Note number
Document DateDate of the document
Total Invoice ValueGross total including taxes

Tax officers scan this QR code at checkposts to verify authenticity of the invoice without internet access.

7. Auto-Population to GSTR-1

One of the key benefits of e-invoicing: once an IRN is generated, the invoice data is automatically pushed to GSTR-1 Tile 4A within 30–60 minutes. The "Source" column in GSTR-1 shows "E-INVOICE." The IRN and IRN Date columns are read-only (cannot be edited manually).

8. Cancellation of IRN
ScenarioRule
Time WindowIRN can be cancelled ONLY within 24 hours of generation
After 24 HoursCannot cancel — issue a Credit Note instead
After Goods MovedCannot cancel even within 24 hours
Goods deliveredCannot cancel

Once cancelled, the same invoice number CANNOT be re-registered. A fresh invoice with a new number must be created if the supply is to proceed.

❓ Problem
ABC Pvt Ltd (turnover ₹8 crore) generates an IRN for invoice #INV-2024-089 worth ₹5,00,000 at 2 PM on Friday. The buyer calls at 11 AM Saturday (21 hours later) saying the goods were not received and the order is cancelled. Can ABC cancel the IRN?
✅ Solution
YES — but only if the goods have NOT been moved. 21 hours < 24 hours, so cancellation is still within the time window. ABC must verify that goods are still in their warehouse and that no e-Way Bill has been marked as goods-in-transit. If goods were dispatched, IRN cannot be cancelled regardless of time.
❓ Problem
XYZ Ltd has turnover of ₹12 crore. They supply goods to an unregistered consumer (B2C) for ₹3,00,000. Do they need to generate an IRN?
✅ Solution
NO. e-Invoicing is mandatory only for B2B supplies (where buyer has a GSTIN). B2C supplies — where the buyer is an unregistered person — do not require an IRN. XYZ issues a regular tax invoice. However, for inter-state B2C invoices above ₹2.5 lakh, a dynamic QR code is required (under a different rule — not the e-Invoice IRN QR).
✏️ MCQ Practice — 50 Questions
1.e-Invoice (IRN generation) is currently mandatory for taxpayers with annual turnover above:
(A) ₹1 crore (B) ₹5 crore (C) ₹10 crore (D) ₹50 crore
2.IRN stands for:
(A) Invoice Reference Number (B) Invoice Registration Number (C) Inter-state Receipt Number (D) Invoice Return Notice
3.An IRN is generated by registering an invoice on the:
(A) GST portal (B) Invoice Registration Portal (IRP) (C) e-Way Bill portal (D) Income Tax portal
4.IRN is a unique hash of:
(A) Supplier GSTIN only (B) Supplier GSTIN + Financial Year + Document Type + Document Number (C) Invoice date + taxable value + IGST (D) Buyer GSTIN + Invoice number + date
5.An IRN once generated can be cancelled within:
(A) 12 hours (B) 24 hours (C) 48 hours (D) 7 days
6.After cancellation of an IRN, can the same invoice number be reused?
(A) Yes, immediately (B) Yes, but after 24 hours (C) No — a new invoice number must be used (D) Only if the buyer agrees
7.The e-Invoice QR code is digitally signed by:
(A) The supplier (B) The buyer (C) The Invoice Registration Portal (IRP/NIC) (D) The GSTN (GST Network)
8.The QR code on an e-Invoice contains which of the following?
(A) Only IRN number (B) Supplier GSTIN, buyer GSTIN, IRN, ACK date, taxable value, and document details (C) PAN of supplier and buyer (D) Full invoice in encrypted format
9.e-Invoice is mandatory for which type of document?
(A) All invoices including B2C (B) B2B tax invoices, credit notes, and debit notes only (C) Only export invoices (D) Only for goods above ₹1 lakh per invoice
10.Which of the following is exempt from e-Invoice even above the turnover threshold?
(A) Manufacturer of goods (B) B2B service provider (C) Banking company, NBFC, insurance company, GTA, SEZ unit (D) Trader with monthly turnover above ₹50 crore
11.ACK number (acknowledgement number) in e-Invoice is issued by:
(A) Supplier (B) Buyer (C) IRP system (D) GST officer
12.Auto-population of e-Invoice data into GSTR-1 happens in which tile?
(A) Tile 7 — B2CS (B) Tile 4A — B2B (C) Tile 12 — HSN Summary (D) Tile 11 — Tax Liability
13.e-Invoice auto-populates the e-Way Bill if which field is filled?
(A) Buyer GSTIN (B) Transporter ID or vehicle number in the e-Invoice JSON (C) Invoice date (D) IRN number
14.The e-Invoice JSON schema version currently mandated is:
(A) v1.0 (B) v1.1 (C) v2.0 (D) v3.0
15.Supply type code "R" in e-Invoice stands for:
(A) Return supply (B) Regular supply (C) Retail supply (D) Reverse charge
16.Supply type code "SEWP" in e-Invoice stands for:
(A) Service with payment (B) Supply to SEZ with payment of IGST (C) Special export with payment (D) SEZ entity without payment
17.Which portal is used to generate IRN in IndIaTaxSim?
(A) e-Invoice portal (IRP1 — NIC) (B) GSTN portal (C) Razorpay gateway (D) Internal Supabase function
18.After IRN generation, if any error is found in the invoice, the correct procedure is:
(A) Edit the invoice on GST portal (B) Cancel the IRN within 24 hours and issue a fresh invoice with a new number (C) File GSTR-1A amendment (D) Issue a credit note for the difference
19.The Acknowledgement Date (ACK date) in e-Invoice is:
(A) The date the buyer accepts the invoice (B) The date the IRP registers the invoice and issues IRN (C) The date the invoice was created by the supplier (D) The date GST is paid
20.e-Invoice applies to which mode of supply?
(A) B2B only (B) B2C and B2B both (C) B2B, exports, and SEZ supplies (NOT B2C) (D) All domestic supplies above ₹1 crore
21.Composition taxpayers are exempt from e-Invoice. Which is another exempt category?
(A) Exporters (B) Input Service Distributors (ISD) (C) Regular taxpayers above ₹5 crore (D) Sole proprietors
22.The turnover for e-Invoice eligibility is computed based on:
(A) Current year turnover (B) Previous financial year turnover (from GSTR-9) (C) Monthly average of last 3 months (D) Projected annual turnover
23.Which document is NOT eligible for IRN generation?
(A) B2B tax invoice (B) Credit note for registered buyer (C) B2C invoice for ₹5 lakh retail sale (D) Debit note for registered buyer
24.Once IRN is generated, the invoice data is pushed to which system automatically?
(A) GSTR-3B (B) GSTR-1 (Tile 4A) and optionally e-Way Bill (C) Annual return GSTR-9 (D) Income tax filing
25.IRP systems include NIC (IRP1). How many IRP systems are currently active?
(A) 1 (NIC only) (B) 2 (C) 5 (D) 4
26.The e-Invoice JSON file is submitted to IRP using which method?
(A) Manual upload on portal (B) API call or bulk JSON upload (C) Email to GSTN (D) Physical submission
27.The "signed invoice" (signed JSON) in e-Invoice contains:
(A) Supplier's digital signature (B) IRP's digitally signed JSON + QR code (C) Buyer's acceptance token (D) Bank guarantee reference
28.If a seller generates an IRN for an incorrect buyer GSTIN, the action is:
(A) The buyer can correct it on their portal (B) Cancel the IRN within 24 hours; issue fresh invoice to correct buyer (C) File GSTR-1A to correct (D) The system auto-corrects buyer GSTIN
29.Under e-Invoice, the GePP (GST e-Invoice Preparing and Printing) tool is used for:
(A) Filing GSTR-1 online (B) Preparing and printing e-Invoice in standard format offline before IRN (C) Calculating GST on invoices (D) Generating e-Way Bills automatically
30.e-Invoice turnover threshold history: it was first made mandatory for taxpayers above _____ from Oct 2020.
(A) ₹5 crore (B) ₹10 crore (C) ₹100 crore (D) ₹500 crore
31.e-Invoice was extended to taxpayers above ₹50 crore from:
(A) Jan 2020 (B) Apr 2021 (C) Oct 2020 (D) Jan 2021
32.e-Invoice was extended to taxpayers above ₹10 crore from:
(A) Oct 2022 (B) Jan 2022 (C) Apr 2022 (D) Oct 2021
33.e-Invoice became mandatory for taxpayers above ₹5 crore from:
(A) Aug 2023 (B) Jan 2023 (C) Oct 2022 (D) Apr 2023
34.Which of the following fields in an e-Invoice is read-only and cannot be changed by the supplier after IRN generation?
(A) Supplier contact number (B) IRN, ACK number, ACK date, and signed QR code (C) Buyer email address (D) Transporter name
35.The "bulk upload" feature in the e-Invoice portal allows uploading invoices in:
(A) PDF format (B) Excel (XLSX) format (C) JSON format (D) CSV format
36.For a taxpayer eligible for e-Invoice, generating an invoice WITHOUT IRN:
(A) Is allowed for B2C invoices (B) Is allowed if value is below ₹1 lakh (C) Is illegal and such invoice is invalid for ITC purposes to the buyer (D) Is allowed up to 7 days — IRN can be generated later
37.My IRNs section in IndIaTaxSim e-Invoice portal shows:
(A) All GSTR-1 invoices (B) All IRNs generated for the active business, with cancel option (C) Only cancelled IRNs (D) Only active (non-cancelled) IRNs
38.After an IRN is cancelled and a new invoice is issued, the new IRN appears in GSTR-1:
(A) Under the same original invoice entry (B) As a new entry replacing the old one (C) In GSTR-1A amendment (D) It does not appear — buyer must manually add
39.Which section of CGST Act empowers the government to mandate e-Invoice?
(A) Section 31A (B) Section 68 (C) Section 16 (D) Section 49
40.e-Invoice is NOT applicable for supplies to which entity even if above turnover threshold?
(A) Registered dealer in another state (B) Unregistered consumer (B2C) (C) Government department (D) Foreign company in India
41.The "Cancel IRN" option is available in IndIaTaxSim until:
(A) Any time before buyer claims ITC (B) 24 hours from IRN generation (C) 7 days from invoice date (D) End of the return period
42.Which of the following information is NOT part of the IRN hash?
(A) Supplier GSTIN (B) Document type (INV/CRN/DBN) (C) Tax amount (D) Document number
43.SEZ (Special Economic Zone) unit is exempt from generating e-Invoice:
(A) True — SEZ units are exempt (B) False — SEZ units above threshold must generate e-Invoice for DTA supplies (C) Only for export supplies (D) Exempt if turnover below ₹100 crore
44.For which invoice type does e-Invoice auto-push update GSTR-1 Tile 4A in IndIaTaxSim?
(A) B2CS (B) B2B (regular IGST or CGST+SGST) (C) CDN Unregistered (D) B2CL
45.The Bulk Cancel feature in e-Invoice allows:
(A) Cancelling all invoices of a financial year at once (B) Uploading a list of IRNs to cancel in bulk via JSON/Excel (C) Automatically cancelling expired IRNs (D) Only the IRP can bulk cancel
46.Which portal replaced the NIC IRP portal as the primary IRP in India?
(A) GST portal (B) There is no single replacement — multiple IRPs coexist (NIC = IRP1, Cleartax = IRP2, etc.) (C) Razorpay IRP (D) Tally IRP
47.The e-Invoice system helps prevent which GST fraud?
(A) Late fee evasion (B) Fake invoices and fraudulent ITC claims (C) Undervaluation of exports (D) Non-payment of advance tax
48.In IndIaTaxSim, the GePP "Prepare Invoice" form is available under which portal?
(A) Invoice Manager (B) e-Invoice → Tools → Prepare Invoice (C) GSTR-1 filing page (D) e-Way Bill portal
49.A GTA (Goods Transport Agency) with turnover above ₹5 crore must generate e-Invoice for:
(A) All transport services (B) GTA services are completely exempt from e-Invoice (C) Only interstate transport (D) Only if recipient is SEZ
50.Which field in e-Invoice JSON captures the line item HSN code?
(A) "HsnCd" (B) "hsn_code" (C) "HSN" (D) "code"
Answer Key
1–B 2–B 3–B 4–B 5–B 6–C 7–C 8–B 9–B 10–C 11–C 12–B 13–B 14–B 15–B 16–B 17–A 18–B 19–B 20–C 21–B 22–B 23–C 24–B 25–C 26–B 27–B 28–B 29–B 30–D 31–B 32–A 33–A 34–B 35–C 36–C 37–B 38–B 39–A 40–B 41–B 42–C 43–A 44–B 45–B 46–B 47–B 48–B 49–B 50–A
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