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GST & Compliance

E-Invoicing Under GST: Who Needs It and How IRN Works

E-invoicing applies to businesses with turnover above ₹5 crore. See who is covered, how an invoice gets its IRN and QR code, and the 30-day reporting rule.

On this page
  1. Who Needs to Do It
  2. How an Invoice Gets Its IRN
  3. Rules to Remember
  4. Check Whether You Have Crossed the Limit
  5. Keep It Inside Your Billing

in short

  • E-invoicing is mandatory if your turnover crossed ₹5 crore in any financial year from 2017-18 onwards.
  • You still make the invoice in your own software. The IRP validates it and returns an IRN and a signed QR code.
  • It covers B2B invoices, exports, and credit and debit notes, not sales to consumers.
  • An invoice without an IRN is not a valid tax invoice when e-invoicing applies to you.

E-invoicing does not mean sending invoices by email, and it does not mean creating invoices on a government website. You make the invoice in your own billing software as always. The difference is that each B2B invoice is reported to a government-approved portal, which stamps it with a unique number before it goes to your buyer.

Who Needs to Do It

E-invoicing is mandatory if your aggregate annual turnover was more than ₹5 crore in any financial year from 2017-18 onwards. Once you cross the limit in any one year, you stay covered even if turnover later falls.

The limit came down in steps, which is why many mid-sized businesses joined only recently.

  1. Oct 2020Above ₹500 crore
  2. Jan 2021Above ₹100 crore
  3. Apr 2021Above ₹50 crore
  4. Apr 2022Above ₹20 crore
  5. Oct 2022Above ₹10 crore
  6. Aug 2023Above ₹5 croreThe limit that applies today.
How the e-invoicing turnover limit has come down.

It applies to B2B tax invoices, export invoices, and credit and debit notes. It does not apply to sales to unregistered consumers. Certain businesses are exempt whatever their turnover, including banks and financial institutions, insurers, goods transport agencies, passenger transport services and SEZ units.

How an Invoice Gets Its IRN

  1. You raise the invoiceIn your billing software
  2. Sent to the IRPIn the standard format
  3. IRP validates itAnd checks for duplicates
  4. IRN and QR returnedDigitally signed
  5. Invoice to the buyerWith the QR code printed
The journey of one e-invoice. It usually takes a few seconds.

The IRN (Invoice Reference Number) is a unique 64-character code for that invoice. The QR code carries the key details and the portal’s digital signature, so anyone can verify that the invoice is genuine.

Two useful things happen automatically after that. The invoice details flow into your GSTR-1, and they can be used to generate the e-way bill without typing them again.

Rules to Remember

  • Report on time. Businesses with turnover of ₹10 crore or more must report an invoice to the IRP within 30 days of the invoice date. The portal rejects older documents. Even if you are below that, report at the time of billing.
  • Cancel within 24 hours. After that, use a credit or debit note.
  • No edits. A reported e-invoice cannot be changed on the IRP.
  • Print the QR code. The copy you give the buyer must carry it.

Check Whether You Have Crossed the Limit

Look at your turnover for every financial year since 2017-18, across all GSTINs under the same PAN, and include exempt and export sales. Many businesses cross ₹5 crore in one good year and do not notice. You can also check your status on the e-invoice portal using your GSTIN.

Keep It Inside Your Billing

Uploading invoices to a portal one by one is slow and easy to forget. With Saniiro E-Invoicing, the IRN and signed QR code are generated from the invoice screen and saved on the invoice, so billing staff do not change how they work. Next, see the 16 fields every GST invoice needs.

This article is general information as of 6 October 2026, not tax or legal advice. GST rules, limits and due dates change by notification, so check the GST portal or ask your chartered accountant before you act on it.

  • e-invoicing
  • IRN
  • QR code
  • GST

Written by the Saniiro Team

We build cloud ERP software for Indian small and mid-sized businesses from Jaipur, and write about the GST, stock and cash flow questions our customers ask us most.

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Questions Readers Ask

What is an e-invoice under GST?

An e-invoice is a normal B2B tax invoice that has been reported to an Invoice Registration Portal (IRP). The IRP validates it and returns a unique Invoice Reference Number (IRN) and a digitally signed QR code, which must appear on the invoice you give to the buyer.

Who has to generate e-invoices?

Registered businesses whose aggregate annual turnover exceeded ₹5 crore in any financial year from 2017-18 onwards must generate e-invoices for B2B supplies, exports, and credit and debit notes. Some sectors, such as banks, insurers and goods transport agencies, are exempt.

Can an e-invoice be cancelled or edited?

An e-invoice can be cancelled on the IRP within 24 hours of generation. It cannot be edited there. After 24 hours, corrections are made through a credit or debit note or by amending the details in GSTR-1.

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