E-invoicing does not mean emailing a PDF. It means your invoice is registered with a government portal at the time you raise it, and comes back stamped with a unique number and a signed QR code.
How it works
- You create the invoice in your billing software as usual.
- The software sends the invoice data to the Invoice Registration Portal (IRP).
- The IRP validates it and returns an IRN (Invoice Reference Number), a signed QR code, and a digitally signed invoice.
- Your software prints the IRN and QR on the invoice. Only then is it a valid tax invoice for a business that falls under e-invoicing.
Who has to do it
E-invoicing applies once your aggregate annual turnover crosses the notified threshold in any year from 2017-18 onward. The threshold has been lowered in stages, so check the current limit for your turnover. It applies to B2B, exports and credit/debit notes — not to B2C (though a B2C QR requirement applies separately to large taxpayers).
E-invoice vs e-way bill
An e-invoice registers the sale document. An e-way bill authorises the movement of goods above a value threshold. When e-invoicing applies, the e-way bill can be generated together with the IRN from the same data.
What happens if the portal is down
Good billing software prints the bill immediately, queues the request, and fetches the IRN automatically when the IRP responds — so your counter never waits on a government server.
Related
FAQ
Is e-invoicing required for B2C sales?
No, IRN e-invoicing is for B2B, exports and credit/debit notes. A separate dynamic-QR requirement on B2C invoices applies to taxpayers above a higher turnover limit.
Can I cancel an e-invoice?
Yes, within 24 hours of generating the IRN, and only if an e-way bill has not been generated against it. After that you issue a credit note.