Introduction

E-invoicing has transformed how businesses generate, validate, and report invoices under GST. By integrating real-time authentication, QR codes, and automated reporting, the e-invoice system aims to improve compliance, reduce tax evasion, and streamline the flow of invoice data into GST returns.

This guide explains how e-invoicing works, turnover thresholds, mandatory QR code rules, and the impact on business operations as per the latest CBIC updates.

What Is GST E-Invoicing?

GST e-invoicing is a system where invoices created by businesses are electronically validated by the Invoice Registration Portal (IRP).

Once validated:

• The invoice receives an Invoice Reference Number (IRN)

• A signed QR code is generated

• The invoice gets auto-reported to GSTN and e-way bill systems

E-invoicing does not mean generating invoices on the government portal — businesses continue using their billing software, which is integrated with the IRP.

Who Must Generate E-Invoices? (Turnover Thresholds)

E-invoicing is mandatory for businesses having turnover exceeding:

✔ ₹5 crore (from 1 August 2023 onwards)

Previously, the threshold was:

• ₹500 crore

• Then ₹100 crore

• Then ₹50 crore

• Then ₹20 crore

• Then ₹10 crore

CBIC gradually reduced limits to include more taxpayers

❌ Exempted Entities:

• SEZ Units

• Banks & NBFCs

• Insurance companies

• Goods Transport Agencies (GTA)

• Passenger transportation services

• Cinema ticketing

How E-Invoicing Works (Step-by-Step)

Step 1: Generate Invoice

Create invoice in your ERP/Tally/billing software with:

• Supplier details

• Buyer details

• Item details

• Tax amounts

Step 2: Invoice Data Sent to IRP

Software sends invoice JSON to the IRP.

Step 3: Validation

IRP verifies:

• GSTIN legitimacy

• Invoice format

• Duplication check

Step 5: Auto-Reporting to GST Portal

Invoice data flows automatically to:

• GSTR-1

• E-way Bill portal (if applicable)

Key Benefits of E-Invoicing

✔ Real-time reporting

Invoices are authenticated instantly.

✔ Auto-populated GST returns

Reduces data entry errors and mismatch notices.

✔ Fraud prevention

IRN system removes fake invoice risk.

✔ Simplified reconciliation

Matching between GSTR-1 and GSTR-2B improves accuracy.

✔ Integration with e-way bill

Transport documentation becomes faster.

QR Code Requirements

1. QR Code on E-Invoices

IRP-generated QR code is mandatory on all e-invoices.

It contains:

• GSTIN of supplier & buyer

• Invoice number

• Date

• Invoice value

• HSN codes

• IRN

2. Dynamic QR Code for B2C Invoices

Separate rule:

B2C invoices for businesses with turnover above ₹500 crore must carry a Dynamic QR Code for payment tracking.

This is not the same as e-invoice QR code.

Penalties for Non-Compliance

Common Mistakes to Avoid

• Not updating ERP/Tally to support e-invoicing

• Using outdated invoice formats

• Missing mandatory fields (HSN, PIN code, item details)

• Uploading incomplete invoice data to IRP

• Assuming B2C invoices require IRN (they do NOT)

Best Practices for Smooth E-Invoicing

• Integrate ERP with approved GST Suvidha Provider (GSP)

• Perform format validation before sending to IRP

• Train staff on IRN generation & QR code printing

• Maintain backup copies of authenticated invoices

• Reconcile IRP uploads with GSTR-1 periodically

Conclusion

GST e-invoicing and QR code rules mark a major shift toward digital compliance. For businesses meeting the turnover threshold, adopting e-invoicing ensures transparency, accuracy, and seamless GST reporting. With proper integration and automation, businesses can reduce errors, avoid penalties, and enhance operational efficiency.

Bisways Consulting Group offers end-to-end support in e-invoice setup, GSTN integration, QR code compliance, software upgrades, and ongoing filing support for businesses across India.