GST E-Invoicing Setup — IRN, QR Code & IRP Reporting
GST e-invoicing is compulsory for every business whose aggregate turnover crossed ₹5 crore in any financial year from 2017-18 onwards. Each B2B invoice, export invoice, credit note and debit note must be reported to an Invoice Registration Portal (IRP) to get an IRN and a signed QR code. We set up the process, connect your billing software and train your team.
What it is
You still raise invoices in your own billing software. The change is that, before it goes to the customer, its details are uploaded in a fixed JSON format to an Invoice Registration Portal (IRP). The IRP validates the data, generates a unique 64-character Invoice Reference Number (IRN) and returns the invoice with a digitally signed QR code. That IRN and QR code are printed on the invoice you send.
The legal basis is Rule 48(4) of the CGST Rules, 2017, with the threshold set by notification. Notification No. 10/2023–Central Tax brought businesses with aggregate turnover above ₹5 crore into the system from 1 August 2023. Under Rule 48(5), an invoice that skips this step when it should not is not a valid invoice at all. The IRP also passes the data to the GST portal, where it fills Form GSTR-1, and to the e-way bill system.
Who it applies to
Turnover above ₹5 crore in any year
Aggregate turnover is counted on a PAN basis, across all your GSTINs in India. If it crossed ₹5 crore in any financial year from 2017-18 onwards, e-invoicing applies to every GSTIN under that PAN. Here is the catch: it stays even if turnover later falls. Say your trading firm crossed ₹5 crore in 2022-23 and slipped below it after losing a big buyer. You still e-invoice today.
B2B, exports and notes
Tax invoices to registered buyers, supplies to SEZs, deemed exports and exports need an IRN. So do credit notes and debit notes issued against them. Sales to consumers (B2C) do not.
Not these sectors
Exempt under Notification No. 13/2020–Central Tax, as amended: insurers, banking companies and financial institutions including NBFCs, goods transport agencies, passenger transport services, multiplex admissions, SEZ units, and government departments and local authorities.
Why it matters
Protect your buyer’s input tax credit
A B2B invoice without an IRN is not a valid tax invoice. Your customer’s purchase team will reject it or hold your payment, because they cannot safely claim input tax credit on it.
Let GSTR-1 fill itself
Once an invoice has an IRN, its details flow into your GSTR-1 on the GST portal. Less month-end typing, fewer mismatches that lead to notices.
Create e-way bills from the same data
Add the transport details while generating the IRN and Part A of the e-way bill can be created from the same data. No second round of data entry at the dispatch counter.
Documents required
Turnover check
- GSTINs registered under your PAN
- Annual returns or turnover figures from 2017-18 onwards
- Details of any exempt-sector activity you carry on
For IRP registration
- GSTIN and access to the mobile number and email registered on the GST portal
- Name of the person who will hold the IRP login
- Your billing or ERP software name and version
For clean data
- Customer master with correct GSTINs and state codes
- Item master with HSN codes (six digits once turnover is above ₹5 crore)
- Unit of measurement codes used on your invoices
Choosing how you generate IRNs
| Option | How it works | Suits |
|---|---|---|
| Free NIC tools | Prepare invoices in the government’s offline bulk-generation utility and upload them to the NIC IRP | Low B2B volume, a handful of invoices a day |
| Billing software with built-in e-invoicing | The software sends the invoice to the IRP and prints the returned IRN and QR code | Small and mid-size traders and manufacturers |
| ERP via API or a GST Suvidha Provider (GSP) | Your ERP talks to the IRP directly, or through a GSP, for every invoice and note | High volume, several GSTINs, branch billing |
The right choice depends on volume, not company size. A Faridabad auto-parts maker raising 40 B2B invoices a day cannot live with manual uploads. A consultancy that bills twelve clients a month often can. We check your invoice count and software first.
How it works
Confirm whether e-invoicing applies
We work out aggregate turnover year by year from 2017-18, on a PAN basis. Then we check whether any exemption covers you.
Register on the e-invoice portal
Each GSTIN is registered on the IRP using the OTP sent to its registered mobile. We create the users you need and set up two-factor login.
Clean the masters and connect the software
We fix buyer GSTINs, HSN codes and units, then set up the free NIC utility, your software’s e-invoice module or API access through your ERP.
Test with live invoices
We generate the first IRNs with your team, check the QR code prints correctly and confirm the data reaches GSTR-1.
Set the monthly routine
We give your staff a short checklist for cancellations, credit notes and the 30-day limit, and reconcile IRNs with your GST return filing each month.
Timelines
Report within 30 days at ₹10 crore and above
From 1 April 2025, a business with AATO of ₹10 crore or more cannot report an invoice, credit note or debit note to the IRP once 30 days have passed from the document date. An invoice dated 1 April cannot be reported after 30 April.
Cancel an IRN within 24 hours
An IRN can be cancelled on the IRP only within 24 hours of generation. After that, you correct the sale with a credit note, which needs its own IRN.
Generate the IRN before the invoice goes out
Below ₹10 crore AATO there is no 30-day block on the IRP, but the invoice is valid only once it carries an IRN. Generate it when you raise the invoice, not at month end.
What happens if you skip it
The invoice is not valid
Under Rule 48(5), an invoice issued without the IRP process is not treated as an invoice. For GST purposes, it is as if no invoice was issued.
Penalty under Section 122
Supplying goods or services without a valid invoice attracts a penalty of ₹10,000 or the tax evaded, whichever is higher, under Section 122(1)(i) of the CGST Act. Errors in invoices can also attract the general penalty of up to ₹25,000 under Section 125.
Customers hold your payment
Your buyer cannot rely on an invoice without an IRN for input tax credit. In practice, large buyers’ accounts teams send such bills straight back. Expect payment holds and requests to re-bill.
Frequently asked questions
What is the current turnover limit for GST e-invoicing?
The limit is aggregate turnover above ₹5 crore in any financial year from 2017-18 onwards, under Notification No. 10/2023–Central Tax, effective 1 August 2023. Turnover is counted for the whole PAN across India, not per GSTIN. Once you cross ₹5 crore in any year, e-invoicing applies to all your GSTINs and continues even if turnover falls later. If you are unsure, we can work it out from your past returns in a day.
What is the 30-day time limit for reporting e-invoices?
Businesses with AATO of ₹10 crore or more must report each invoice, credit note and debit note to the IRP within 30 days of the document date, from 1 April 2025. After that, the IRP blocks the upload and no IRN can be generated. Below ₹10 crore AATO, the portal does not apply this block. A simple weekly check of pending invoices keeps you well inside the limit.
Do B2C invoices need an IRN?
No, sales to unregistered customers do not need an IRN. E-invoicing covers B2B invoices, supplies to SEZs, deemed exports, exports, and credit and debit notes. Separately, businesses with aggregate turnover above ₹500 crore must print a dynamic QR code on B2C invoices, which is a different requirement. For most businesses we set up, retail bills continue exactly as before.
Which businesses are exempt from e-invoicing?
Exempt categories under Notification No. 13/2020–Central Tax, as amended, are insurers, banking companies and financial institutions including NBFCs, goods transport agencies, passenger transport services, multiplex admissions, SEZ units, and government departments and local authorities. The exemption follows the type of entity or service, not turnover. A business with one exempt activity and other taxable B2B sales needs a careful look. We confirm this before any setup begins.
Is an invoice without IRN valid under GST?
No. Under Rule 48(5) of the CGST Rules, an invoice issued without following the e-invoicing process, when it applies, is not treated as an invoice. The supply may be treated as made without a valid invoice, which attracts a penalty of ₹10,000 or the tax involved, whichever is higher, under Section 122. Your buyer also cannot rely on it for input tax credit. Generating the IRN at the time of billing avoids all of this.
Can an IRN be cancelled or edited?
An IRN can be cancelled only within 24 hours of generation, and it cannot be edited on the IRP. After 24 hours, you correct the transaction with a credit note or debit note, each of which needs its own IRN. A cancelled invoice number also cannot be reused for a fresh IRN. Most errors come from wrong buyer GSTINs or HSN codes, so cleaning the masters at setup prevents most cancellations.
Do I need to buy software for e-invoicing?
No. NIC offers a free offline bulk-generation utility, which works for businesses with a small number of B2B invoices. Many billing and accounting packages also include an e-invoice module. Businesses with high volume or several GSTINs usually connect their ERP to the IRP by API, directly or through a GST Suvidha Provider. We recommend the cheapest option that matches your daily invoice count.
Does e-invoicing replace the e-way bill?
No, the e-way bill is still required for movement of goods above ₹50,000, but e-invoicing makes it easier. If you enter transport details while generating the IRN, Part A of the e-way bill can be created from the same data. You then add vehicle details for Part B when the goods move. Your dispatch desk does not type the same data twice.
Is there any government fee for generating an IRN?
No. Registering on the government’s e-invoice portal and generating IRNs there carries no government fee. Costs arise only if you choose paid billing software, an ERP connector or a GSP service. Our fee covers the applicability check, IRP registration, software setup and staff training, and we quote it before we begin. For many small businesses, the free NIC tools are enough to start.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
There is no government fee for registering on the e-invoice portal or generating IRNs. Any software or GSP charges are paid directly to your chosen provider.
Ready to begin?
Share your GSTIN and last few years’ turnover, and we will tell you whether e-invoicing applies and set it up before your next B2B invoice.