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Posted on May 30, 2025
Imagine this: piles of manual invoices, endless reconciliation mismatches, and the constant fear of penalties lurking around every corner. For many businesses, this chaos was just part of the daily grind. But those days are fading fast.
With the introduction of e-invoicing under GST, India is moving towards a cleaner, smarter, and error-free digital billing system. And here's the most important thing: it's no longer just a nice-to-have. If your business crosses a certain turnover threshold, e-invoicing is mandatory. Even if you don't fall into that bracket, adopting it is a best practice that can save you time, money, and headaches.
Let's understand what exactly e-invoicing under GST is and what you should know.
What Is GST E-Invoicing?
Think of e-invoicing under GST as a digital stamp of approval for your B2B invoices. If you’re a GST-registered business, you already use an e-way bill to move goods. E-invoicing works the same way—but for your invoices.
From August 2023, it’s mandatory if your turnover is ₹5 crore or more. Earlier, this applied only to businesses crossing ₹10 crore.
Here’s the latest update: Starting April 1, 2025, if your Annual Aggregate Turnover (AATO) exceeds ₹10 crore, you must upload your e-invoices to the Invoice Registration Portal (IRP) within 30 days of issuing them. This rule used to apply only to the big players—those crossing ₹100 crore.
How Things Changed After E-Invoicing?
Before e-invoicing came into play, businesses used their own billing software. Invoices were made, then uploaded manually into GSTR-1 either by hand or through ERP systems.
After that, the information showed up in the buyer’s GSTR-2 B. For transporters, it was another step—they had to create e-way bills by importing invoice data again, using Excel or JSON.
It wasn’t smooth. It took time. And it often led to errors. Now with e-invoicing, you still generate invoices the same way using Excel, JSON, or API. But the difference? Everything flows in one smooth pipeline. Your invoice data moves straight to GSTR-1 and e-way bill systems. No double work. No messy uploads.
That’s the power of a connected system.
The Time Limit You Need to Know
Until April 30, 2023, there wasn’t any official time limit to generate an e-invoice. Businesses could upload it whenever. That changed.
From May 1, 2023, the government stated that businesses with a turnover of ₹100 crore or more must generate e-invoices within seven days of the invoice date. However, this rule didn’t go into effect.
Instead, a 30-day deadline took effect on November 1, 2023. If you’re a business making ₹100 crore or more, you must report all tax invoices, credit notes, and debit notes to the IRP within 30 days of issuing them.
Starting April 1, 2025, this 30-day rule will apply to all businesses with turnover over ₹10 crore.
That gives you time, but not forever. Hence, make sure your systems are ready.
How to Generate an E-Invoice (Step-by-Step)
Let’s break this down in simple steps. Don’t worry—it’s not as technical as it sounds.
1. Set Up Your Software First
You’ll need billing or ERP software that supports e-invoice generation. It must follow the standard format set by the government (called PEPPOL standards). If you use a service provider, make sure they’ve updated your system to match the required schema and fields.
2. Choose How You’ll Connect to the Portal
You have two main options to generate e-invoices:
Direct API Access: Your system can talk directly to the Invoice Registration Portal (IRP). However, for this to work, your device’s IP address needs to be whitelisted.
Bulk Upload Tool: Not into APIs? No problem. Download the bulk generation tool, create a JSON file, and manually upload it to the portal to generate multiple invoices simultaneously.
3. Raise the Invoice on Your System
Create the invoice using your usual billing software. Make sure you fill in the required fields:
Buyer and seller GSTINs
Invoice number and date
Taxable value, GST rate, and tax amount
Item details and quantity
Keep everything accurate. Any mistake here will disrupt the process.
4. Upload the Invoice to the IRP
Once your invoice is ready, upload the JSON file to the IRP. You can do this via:
API (if you’ve set it up)
An app or browser-based portal
A mobile app or even SMS, in some cases
The IRP will take it from there.
5. IRP Checks and Confirms
Here’s what the portal does next:
It checks the invoice details for errors or duplicates
It generates a unique Invoice Reference Number (IRN)
It digitally signs the invoice and adds a QR code
The invoice is now officially e-verified.
6. Final Step: Auto-Sync with GST and E-Way Bill Portals
Once your invoice is verified:
The IRP pushes the data to the GST system
Your GSTR-1 gets auto-filled
It also sends the info to the e-way bill portal, if needed
If you provided an email, you’ll get a confirmation there too.
That’s it. You’re done. E-invoicing might feel complex at first, but once your system is ready, it becomes just another step in your billing routine.
How E-Invoicing Helps Curb Tax Evasion
E-invoicing makes it tough to cheat the system. Here’s how it keeps things clean and transparent:
Real-time tracking: Every invoice goes through the GST portal. Tax authorities see it instantly. No hiding or delaying transactions.
No room for invoice tampering: Once the invoice is generated through the portal, it can't be changed later to match your books.
Stops fake GST claims: Since every invoice is official and verified, fake invoices won’t slip through. Input tax credit can only be claimed on real transactions.
Better matching, less fraud: The system matches the seller’s and buyer’s tax records. If something looks off, it’s flagged.
With e-invoicing, the data speaks for itself. No more shady workarounds.
What Are the Mandatory Fields in an E-Invoice?
An e-invoice, as per the GST guidelines notified under Notification No. 60/2020 – Central Tax dated July 30, 2020, follows a standardized format that includes 12 sections and 6 annexures, totaling 138 fields. Out of these, five sections and two annexures are mandatory for all taxpayers generating e-invoices.
The five mandatory sections include basic details, supplier information, recipient information, invoice item details, and document total. In the basic details section, fields such as document type (invoice, credit note, debit note), invoice number, date, type of invoice (regular, export, SEZ, etc.), and transaction type must be provided. Supplier information must include the supplier’s legal name, GSTIN, and full address with state code and pincode. Similarly, recipient information must have the buyer’s legal name, GSTIN, billing and shipping address, and place of supply.
In addition to the five mandatory sections, two annexures are compulsory—the item list annexure, which lists each product or service line-by-line with all relevant tax and pricing details, and the document total annexure, which shows consolidated values for the entire invoice. Also, fields like sub-supply type, previously part of the e-way bill, are now included in the e-invoice format, further streamlining compliance.
These mandatory fields ensure uniformity, accurate reporting, and real-time integration with the GST and e-way bill portals. Generating a valid e-invoice with these fields ensures seamless transmission to the Invoice Registration Portal (IRP), which validates and digitally signs it before sharing it with the GST system.
Conclusion
In conclusion, GST e-invoicing is a crucial step toward making your business more efficient and compliant. It reduces errors, prevents tax evasion, and streamlines your GST filings. Getting your e-invoicing right means smoother operations and better control over your taxes.
If you’re running a startup or small business dealing with international payments, Infinity can help you go beyond compliance. With multi-currency accounts, fast settlements, and transparent fees, Infinity simplifies your financial operations while keeping you fully compliant with GST norms.
Ready to take your business to the next level? Explore Infinity today and enjoy hassle-free global payments, treasury management, and regulatory support — all in one place.
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