Taxation & Compliance
Posted on Feb 6, 2026
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TL;DR:
GST e-invoicing is mandatory for businesses with an AATO of ₹5 crore or more, and from April 2025, businesses with an AATO of ₹10 crore must upload e-invoices to the IRP within 30 days.
The process involves generating invoices in a standardised format, obtaining an IRN, and uploading them to the IRP for validation.
E-invoicing simplifies compliance, reduces errors, and improves efficiency in both domestic and international trade.
Key features include the IRN, QR code, and digital signature for authenticity.
Exceptions to e-invoicing include banks, GTAs, passenger transport providers, and local authorities.
Introduction
Tech is changing quickly, and the GST Network (GSTN) has been evolving with it. In 2020, the GST Council rolled out e-invoicing under GST, reshaping how businesses raise invoices and manage GST compliance by bringing more standardisation and automation into the process.
Over the past five years, e-invoicing has seen several updates covering aspects like GST E-invoice time limits, revised minimum aggregate turnover thresholds, and other eligibility and compliance conditions.
When you’re running a business, you need to stay on top of invoicing, taxes, and changing rules. But with updates coming in regularly, it can start to feel like a lot to keep track of.
In this article, we break down GST E-invoice limits, explain how the filing process works, and look at what’s next for e-invoicing, so you know exactly what to expect going forward.
Key pointers
E-invoicing requires businesses to create invoices in a prescribed digital format and upload them to the Invoice Registration Portal (IRP).
Launched in 2020, the system has been expanded over time to cover a wider range of businesses under GST.
E-invoicing is mandatory for B2B and B2G taxpayers with an annual aggregate turnover above ₹5 crore. From 1 April 2025, taxpayers with an AATO of ₹10 crore or more must upload invoices to the IRP within 30 days from the date of issue.
Staying on top of GST e-invoicing rules is essential to remain compliant and avoid penalties. If an invoice isn’t reported within 30 days of being issued, the IRP may reject it, and you could face regulatory action, penalties, or fines.
What is an E-Invoice?
E-invoicing is a system where businesses create invoices in a digital format and report them online to the GST portal, known as the Invoice Registration Portal (IRP).
The IRP verifies the invoice details and generates an IRN (Invoice Reference Number). Since invoices must follow a standardised E-invoice format, it reduces manual errors and improves compliance and traceability. The NIC (National Informatics Centre) is the primary IRP.
How does an E-invoice work?
Improving visibility across filings and bringing consistency to invoices, e-invoicing simplifies GST compliance. Additionally, it lessens the mismatches that frequently result in notices. This is a straightforward, step-by-step explanation of the procedure:
Businesses can keep generating invoices as usual, but they now need to use the prescribed E-invoice format, follow the standard schema, and fill in all mandatory fields accurately.
1. Generating an invoice
Businesses can keep generating invoices as usual, but they now need to use the prescribed E-invoice format, follow the standard schema, and fill in all mandatory fields accurately.
2. Generating an IRN
Next, the taxpayer generates a unique hash using key details like the supplier’s invoice number, the financial year, and the supplier’s GSTIN. Once the IRP verifies this hash, it is issued as the Invoice Reference Number (IRN).
3. Uploading the JSON
Once a business creates an E-invoice, all of the information and details are compiled into a JSON file. You can upload this JSON to the IRP either directly, through a GST Suvidha Provider (GSP), or using an approved third-party tool.
4. Generating and validating the hash
If an invoice is uploaded without a pre-generated hash, the IRP creates the hash and treats it as the IRN.
If the hash is uploaded along with the confirmation, the IRP first runs a de-duplication check and validates the IRN and hash against the GST system’s Central Registry.
Once verified, the IRN is recorded in the registry, and the IRP issues a QR code for the invoice.
What is e-invoicing under GST? What's changed from April 1, 2025?
GST e-invoicing requires B2B invoices to be uploaded online and verified through the Invoice Registration Portal (IRP). It was rolled out in 2020 and has been updated several times since, with the most recent set of changes applying from April 2025.
Right now, e-invoicing is compulsory for businesses with an Annual Aggregate Turnover (AATO) of ₹5 crore or more.
Under the 2025 update, businesses have to upload and report their E-invoices on the Invoice Registration Portal (IRP) within 30 days from the invoice date, when an AATO of ₹10 crores.
Earlier, the 30-day reporting rule applied only to businesses with an AATO above ₹100 crore. With the limit now extended to lower turnover slabs, not meeting the deadline can leave more businesses open to penalties and other compliance issues.
What is the process of getting an E-invoice?
To get an E-invoice, follow this process:
Create an invoice
Start by preparing the invoice as you normally do, using your billing or accounting software, just make sure it supports the GST E-invoice format. You don’t have to create the invoice only on the government portal; you can generate it in your own system and then upload it for registration.
Get an IRN
Next, you need to upload the E-invoice to the Invoice Registration Portal (IRP). The portal checks the invoice details and then generates a unique Invoice Reference Number (IRN). This IRN is a 64-character code and is required for every document registered under e-invoicing.
Upload the E-invoice to the IRP.
After the IRN is generated, it must be attached to the invoice and submitted along with the corresponding JSON file for each E-invoice.
Validate the information
The IRP then checks the details in the JSON file. If the supplier hasn’t generated a hash, the IRP creates it and uses that as the IRN. If the supplier has already generated the hash, the IRP runs a duplication check and verifies the IRN and hash against the GSTN’s central system before approving it.
Get your QR code and digital signature
Once the details are verified, the system finalises the IRN, generates a QR code, and applies a digital signature to the invoice. The QR code plays a key role, as it allows quick access to invoice details and contains important information such as:
GSTIN of the supplier and the recipient
Invoice number
Invoice issue date
Total invoice value
Unique IRN and the HSN codes of the items
Data is transmitted to the e-Way Bill Portal and GST System
After the invoice is registered on the IRP, the details are automatically shared with the e-Way Bill portal and the GST system. This helps to pre-fill returns and related forms, including fields in GSTR-1.
Obtain your E-invoice receipt
Once the process is complete, the IRP sends back the IRN, QR code, and the validated JSON, typically to your registered email (or through your software/GSP, depending on how you uploaded it).
What is the time limit for generating an E-invoice?
From 1 April 2025, businesses with an AATO above ₹10 crore must generate and upload E-invoices to the IRP within 30 days from the invoice date.
The E-invoice time limit is the maximum period allowed to upload an invoice to the IRP (from the invoice date) and get the IRN generated. If you attempt to upload it after this window, the IRP will reject it, meaning it won’t be treated as a valid E-invoice for GST compliance, and it may also impact input tax credit claims.
Sticking to GST E-invoice time limits is important, else you could run into issues like:
Compliance risk: The 30-day window, if not followed, can lead to penalties, closer scrutiny, and issues during audits.
Operational impact: If the IRP rejects an invoice, you’ll likely have to cancel it and raise a new one, creating extra work, increasing error chances, and slowing collections.
Financial penalty: If e-invoicing is mandatory and you skip it, the penalty can be ₹10,000 or 100% of the tax amount (whichever is higher) per invoice.
Who is required to generate an E-invoice, and what is its applicability?
Currently, e-invoicing is compulsory for businesses with an AATO above ₹5 crore.
In case of your AATO being ₹10 crore or more, you must upload the E-invoice to the IRP within 30 days from the invoice date.
These rules and regulations apply across the board, whether you’re a large MNC, an LLP, an MSME, or a sole proprietor. GST e-invoicing is applicable to multiple transaction types, such as:
B2B: Business-to-business transactions
B2G: Business-to-government transactions
SEZ developers transactions
Export transactions and deemed exports
Deemed supplies
Debit and Credit Notes
What are the exceptions to the applicability of E -invoicing?
As per the Central Board of Indirect Taxes and Customs (CBIC), certain categories of taxpayers and transactions are exempt from GST e-invoicing. These exceptions include:
Banking and financial sector entities, including banks, insurers, and non-banking financial companies (NBFCs).
Goods Transport Agencies (GTAs) provide transport of goods by road.
Passenger transport service providers.
Registered persons supplying services related to admission to exhibition of cinematograph films in multiplex screens.
Local authorities and government departments.
SEZ units (excluding SEZ developers).
What are the benefits of using an E-Invoice in International and Domestic Trade?
E-invoicing can make a real difference for both domestic and cross-border trade. It helps keep costs in check, keeps your paperwork cleaner, and reduces the chances of penalties or delays caused by invoice issues.
Here’s how e-invoicing supports trade within India and overseas:
International trade
For cross-border trade, e-invoicing plays an important role. It helps tax administration run more smoothly by automating data capture and improving the flow of information needed for customs and regulatory checks.
Authorities can access near-real-time invoice details once they’re raised and cross-verify them during customs processes.
For businesses, it also means better record-keeping and tighter control over compliance and reporting.
Domestic trade
Domestic trade also sees clear advantages from e-invoicing, with one of the biggest benefits being improved tracking and control, as transaction details are recorded in a structured format and remain easily accessible whenever they’re needed.
It can also speed up invoice creation, which improves productivity and cuts down manual effort. Fewer human errors, lower costs, smoother finance operations, and stronger data security are some of the biggest advantages of e-invoicing.
What are the use cases of e-invoicing across industries?
E-invoicing is used across a wide range of sectors such as retail, logistics, manufacturing, e-commerce, consulting, professional services, and even healthcare. Here’s how different kinds of businesses use e-invoicing in real-world workflows:
1. Exports
E-invoicing supports cross-border compliance by verifying invoices through government systems. This can help to speed up customs checks and also make foreign exchange reconciliation smoother for exporters.
2. Freelancing
E-invoicing improves billing consistency, makes GST filings easier to manage, and also helps reduce invoice and return errors for freelancers.
3. Manufacturers
Manufacturers benefit too, as e-invoicing brings structure to supply-chain billing. For businesses handling thousands of invoices a day, paper trails are hard to track and easy to mess up, e-invoicing keeps everything recorded, consistent, and easier to reconcile.
4. E-commerce stores
E-commerce is growing fast, and with so many moving parts for sellers, buyers, suppliers, and logistics partners, keeping records clean can get a bit tricky.
E-invoicing helps by generating standardised, accurate invoice data, maintaining a clear audit trail, and supporting smoother GST compliance.
5. Other service providers
Standardised invoicing matters just as much for service businesses. E-invoicing helps you stay GST-compliant, improves transparency, reduces errors, cuts down paperwork, and builds more trust with customers.
The key differences between E-invoice and Commercial invoice
E-invoicing and commercial invoices can often be mistaken for one another. However, they are different types of documents. Here's how they differ:
E-invoices | Commercial invoices |
E-invoices are part of the electronic invoicing system set up by the GST Council of India. | Commercial invoices are documents produced when shipping products to clients. |
They help electronically authenticate transactions. | They act as legal evidence of sale between a supplier and seller. It is mainly used for clearance with customs, duties, and payable taxes. |
They apply to all B2B and B2G businesses. | They apply to businesses dealing with the export of goods to foreign clients. |
E-invoice vs. quotation vs. purchase order: When to use what
Other documents that are often mistaken for E-invoices include quotations and purchase orders.
Here’s how they differ from an E-invoice:
E-invoices | Purchase orders | Quotations |
Invoices are bills sent by the vendor to a buyer that requests payment for any products or services provided. E-invoices are electronic invoices that follow a specific GST-compliant format and must then be uploaded to the IRP. | POs are formal requests presented to the vendor for a supply of a specific good or service. It generally includes the product details, prices, quantity, delivery terms, and more. | Quotes are documents sent by vendors to buyers. These specify the prices for specific goods and services. |
They help to authenticate transactions and make tax filing more streamlined. | It acts as a confirmation that a buyer has approved the listed items. | They allow buyers to view, compare, and negotiate different offerings and terms before making a purchase. |
Key elements typically include the invoice number, date, buyer details, due date, terms of payment, total invoice amount, etc. | Key elements include the date, PO number, vendor details, delivery details, item description, quantities, unit prices, and total value. | Key elements include a unique reference number, expiration date, description of items, unit prices, and the total value of the quote. |
What are the key features of an effective E-invoice?
E-invoices come with built-in safeguards, such as the Invoice Reference Number (IRN), a QR code and a digital signature, which help keep them secure and easy to verify.
These elements help confirm authenticity, reduce the risk of tax fraud, and simplify data handling. Key features include:
The name, GSTIN, and address of the supplier
A tax invoice number of 16 characters
The date of issue
The name, address, and GSTIN of the recipient (if they are registered)
If the buyer is unregistered and the invoice value exceeds ₹50,000, the invoice must include the following details:
The name and address of the receiver
Delivery address
Estimated delivery time
State name and code
HSN code of goods
Service accounting code for services
Currency
Payment terms
Description of the good or service
Quantity of goods and unit in UQC
Total value of the goods or
The taxable value of the supply
The applicable GST rate (for example, CGST, SGST, IGST, UTGST, Cess)
Name of supply and destination for any interstate transactions
If GST is payable on a reverse charge basis
The signature of the supplier or their authorised representative.
What are the challenges in creating an E-Invoice?
E-invoicing always comes with its challenges, the most common of which include:
1. Formatting challenges
Different businesses use different accounting tools, so invoice formats can vary, and small inconsistencies can slip in. Since GST E-invoices must follow a fixed, standard structure, it's best to use software that already supports the required format. Platforms like Infinity can create E-invoices that align with GST rules, without you having to manually adjust or rework them.
2. Missing regulatory information
It also brings up a common pain point, like missing or incorrect details. Even minor slip-ups , such as an incorrect tax amount, duplicate entries, blank mandatory fields, or data that doesn’t match, can lead to compliance issues. Before uploading to the IRP, make sure the invoice is complete, accurate, and internally consistent.
3. Fraud and security risks
Even though e-invoicing is usually more secure than paper invoices, it can still be vulnerable to risks like cyberattacks, phishing attempts, and invoice tampering.
4. Implementation expenses
E-invoicing tools come with hefty setup charges, ongoing subscription fees, or the need for hardware/software upgrades. For many MSMEs and startups, this can make adoption feel costly and difficult to justify upfront.
5. Exchange rate risks
Many businesses deal with customers abroad or receive payments in multiple currencies. Beyond the impact of currency fluctuations on your margins, it can also make e-invoicing harder, especially when you need to record values accurately and keep conversions consistent across invoices and filings.
What are the best practices for generating and sharing E-invoices?
To ensure your taxation and invoicing processes run smoothly, here are some best practices to follow:
Software for generating E-invoice :
Start by listing what your business needs, then choose a platform that matches those requirements. Most importantly, it should generate E-invoices in the standard GST-prescribed format, so you stay compliant without extra manual work.
Format and templates:
GST E-invoices have a prescribed structure and mandatory fields. If the format is off, it can lead to delays, compliance issues, or even IRP rejection later. It’s better to get the template right from day one. Tools like
Workflow Automation:
Automating your e-invoicing process boosts efficiency, cuts down on manual work, reduces delays, and minimises the risk of human errors.
Digital signatures:
Digital signatures act as a verifiable stamp of authenticity for E-invoices. They help prevent fraud and ensure compliance with legal requirements.
Currency conversion:
E-invoices help businesses track exchange rates and currency fluctuations, making it easier to implement strategies that reduce the risk of future currency-related issues.
Stay updated on regulations:
Laws and regulations are always evolving, so it’s important to stay informed about any changes. Regularly checking for updates helps prevent compliance mistakes and protects your business from penalties or fines related to improper invoicing.
Integrating E-invoices with invoicing and payment platforms
E-invoicing becomes even more efficient when integrated with various invoicing and payment platforms. These include:
Infinity
Infinity is focused on helping you receive international payments seamlessly.
E-invoices are generated after every transaction automatically, helping streamline the invoicing process, ensure compliance, and maintain financial accuracy.
ERP Systems
ERP systems such as Oracle are widely used across sectors, including manufacturing and supply chain management.
Integrating e-invoicing with these systems enables businesses to create a clear, accurate audit trail, facilitating smooth, efficient transactions across the entire supply chain.
Accounting Tools
Accounting tools like Tally or Zoho Books provide integrated e-invoicing solutions. They help ensure a standardized format, maintain compliance with GST regulations, and minimize manual errors in invoicing.
What are other legal and regulatory compliances for GST e-invoicing?
Here are some key legal and regulatory compliance requirements you should be aware of for GST e-invoicing:
GSTN
The GST Network (GSTN) is the main authority responsible for overseeing e-invoicing. The CGST Act and Rules govern key aspects such as the format, content, reporting requirements, and scope of e-invoicing. These rules also define penalties for non-compliance. For example, Rule 48(4) of the CGST Rules specifies which businesses are required to generate and upload E-invoices to the IRP and obtain an IRN.
Export requirements
Exporters, like all businesses, are required to generate GST E-invoices. This process helps streamline foreign exchange payments, customs clearance, etc.
It also ensures compliance with both domestic and international regulations, as the validation of invoices must be validated through the government portal.
RBI
The RBI doesn't directly regulate GST e-invoicing, but it can influence, particularly in areas such as payment gateways, banking, and foreign exchange.
While the RBI doesn't govern GST compliance, its provisions impact payment processing, settlement systems, and cross-border trade related to E-invoices.
What are the future trends in invoicing?
E-invoicing has been advancing the country towards a more digital future, and as technology evolves, the e-invoicing system will continue to improve. Some of the future trends expected to shape GST e-invoicing include:
Artificial Intelligence
Automated invoicing solutions are expected to gain more traction in the future. These tools will help streamline and accelerate business processes, minimize manual errors, and free up financial teams to focus on other important tasks instead of spending time on invoice creation.
Mobile invoicing
Mobile invoicing is expected to become more popular, especially with the rise of remote work and digital commerce. This will enable businesses, particularly MSMEs and startups, to easily create and manage E-invoices directly from their mobile devices.
Concluding thoughts
Dealing with delays and errors in international payments can be frustrating, but with Infinity, you don’t have to stress about what went wrong.
Infinity simplifies receiving international payments, offering a seamless experience.
With Infinity, you can easily track and manage international payments, ensuring transparency, speed, and compliance with Indian and global regulations.
Infinity is built for freelancers, startups, and small businesses looking for a reliable solution to receive money from abroad without the headaches of traditional banking systems.
It offers fast, low-cost payment collection and settlement, along with no hidden fees, and ensures that compliance and security are always a priority.
With customisable invoicing, simplified currency conversion, and automated workflows, Infinity ensures that your global payments process is seamless, transparent, and hassle-free.
Sign up now and experience hassle-free global payments with Infinity!
Frequently Asked Questions
1. What is the E-invoice applicability limit now?
The GST E-invoice limit is for companies with an AATO of Rs. 5 crore or more. If a company's aggregate turnover has been Rs. 5 crore or greater in any year since FY 2017-18, it must generate E-invoices.
2. What are the requirements for E-invoice?
E-invoices must follow a standardised format and include key features such as the supplier's information, transaction value, date, recipient's information, applicable GST rates, and more.
3. What are the changes in GST E-invoicing since April 2025?
Starting April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of ₹10 crore or more are required to report E-invoices to the IRP within 30 days of generation.
4. Is there a 7-day time limit for E- invoice?
No, there is a 30-day limit for GST E-invoices. Under this rule, businesses must report and upload GST E-invoices to the IRP within 30 days of generation.
