✅ Key Provisions of E-Invoicing under GST

1. Applicability (Turnover Thresholds)

🔹 Applies to registered persons under GST whose turnover exceeds the specified limits in any financial year from 2017–18 onwards.

2. Documents Covered

E-invoicing is required for:

• B2B Tax Invoices

• Export Invoices

• Credit Notes

• Debit Notes

🔸 Not applicable for B2C invoices (except for QR code requirement).

3. Process of E-Invoicing

1. Invoice Generation: Created by the supplier in their own accounting/billing software.

2. IRN Generation: Invoice data is sent in a prescribed format (JSON) to the Invoice Registration Portal (IRP).

3. Validation by IRP: IRP validates and generates a unique Invoice Reference Number (IRN) and a QR code.

4. Signed Invoice Returned: IRP returns the digitally signed e-invoice with QR code to the supplier.

5. Auto-Population in GSTR-1: Data is auto-populated in the seller’s GSTR-1 return.

4. Invoice Format

• Must comply with the e-invoice schema notified by the GSTN.

• Contains mandatory fields like:

  • Seller & Buyer GSTIN

  • Invoice Number & Date

  • HSN codes

  • Taxable Value, Tax Amount

  • IRN, QR Code

5. Exempted Entities

Even if turnover exceeds the threshold, the following are exempt from e-invoicing:

• SEZ Units (not SEZ Developers)

• Banks, NBFCs, Financial Institutions

• Insurance companies

• Goods Transport Agencies (GTA)

• Passenger transport services

• Cinemas (multiplexes)

6. Penalties

• Non-issuance of e-invoice: Treated as non-issuance of invoice → penalty up to ₹10,000 per invoice (Section 122 of CGST Act).

• Incorrect invoicing: Penalty of ₹25,000 per invoice.