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GST and invoicing

What is an e-invoice under GST? IRN, limit and rules

Definition

E-invoice: An e-invoice is a B2B tax invoice reported to the government's Invoice Registration Portal, which returns a unique IRN and a signed QR code to print on it.

Also called: E-invoicing, GST e-invoice, IRN, Invoice Reference Number, IRP

What e-invoicing means

E-invoicing under GST does not mean emailing a PDF. It means reporting each B2B invoice to an Invoice Registration Portal (IRP) in a set format, FORM GST INV-01, under Rule 48(4) of the CGST Rules. The IRP validates it and returns an Invoice Reference Number (IRN) and a digitally signed QR code, which must be printed on the invoice. The details are then passed to the GST system for your returns.

Once the rule applies to you, Rule 48(5) says an invoice issued any other way is not treated as an invoice at all.

Who must e-invoice: the turnover limit

E-invoicing applies to registered businesses whose aggregate turnover was more than ₹5 crore in any financial year from 2017-18 onwards. The limit has come down in stages, most recently from ₹10 crore to ₹5 crore from 1 August 2023 (Notification 10/2023-Central Tax), and a GSTN advisory of October 2026 still describes ₹5 crore as the current threshold. Check the e-invoice portal for any change.

  • It covers invoices, credit notes and debit notes to registered buyers, and exports. Sales to consumers (B2C) are not e-invoiced.
  • Some sectors are exempt even above the limit, such as banks, insurers, NBFCs and goods transport agencies.
  • From 1 April 2025, a business with turnover of ₹10 crore or more cannot report an invoice older than 30 days on the IRP.

Common e-invoicing mistakes

The most common mistake is checking only this year's turnover. The test is any year since 2017-18, and aggregate turnover counts all GSTINs under the same PAN, so a business that crossed ₹5 crore once stays covered even if sales fall. Others are handing over an invoice before the IRN is generated, printing it without the QR code, and forgetting that B2B credit notes need an IRN too.

Worked example

Does e-invoicing apply to this business?

A Ludhiana knitwear maker had aggregate turnover of ₹3.8 crore in 2023-24, ₹5.4 crore in 2024-25 and ₹4.6 crore in 2025-26. Because turnover crossed ₹5 crore in 2024-25, its B2B invoices have needed an IRN since 1 April 2025, even though the latest year was lower. Its retail sales to walk-in customers stay outside e-invoicing, and since its turnover is below ₹10 crore, the 30-day reporting limit does not apply to it today.

In managemate

managemate does not generate e-invoices. It does not connect to an Invoice Registration Portal, so it cannot obtain an IRN or print the signed QR code. What it gives you is a numbered GST tax invoice with your GSTIN, the buyer's GSTIN, HSN codes, place of supply, the CGST and SGST or IGST split and the amount in words, which is the kind of invoice businesses below the e-invoicing limit issue. If your turnover has crossed the limit, your B2B invoices must be registered on an IRP by other means, so managemate's invoices alone are not enough for those sales.

Sources

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