Guide To E-invoice Under GST

By Gaurav Gandhi And Anushree Choubey    -   April 4, 2022

E-invoice can means GST invoice with a valid IRN uploaded on GST portal on real time basis.

What is E-Invoicing and how is it different from present invoice?

There is no much difference indeed but this can be called as GST invoice with a valid IRN.

Step 1: Registered persons will continue to create their GST invoices on their own Accounting/Billing/ERP Systems. However, these invoices will now be reported to ‘Invoice Registration Portal (IRP)’.

Step 2: On reporting, IRP returns the e-invoice with a unique ‘Invoice Reference Number (IRN)’ after digitally signing the e-invoice and adding a QR Code.

Step 3: Invoice can be issued to the receiver (along with QR Code). 

What are the Documents covered E-Invoicing?:

Tax payer has to report following documents under E Invoicing system: -

  1. Invoice By Supplier of Goods or Services.
  2. Credit Note and Debit Note

Bill of Supply and Delivery challan and Transfer documents need not be uploaded to E invoicing Portal.

Phased wise Introduction and Applicability:

  1. In 37th Council meeting of GST council held on 20th September, 2019, it introduced the concept of 'e-invoicing' for reporting of Business to Business (B2B) and export invoices in a phased manner via Notification No. 68/2019.
  2. Further, Notification No. 70/2019 Dt. 13-12-2019 notified registered person whose aggregate turnover in a financial year exceeds Rs. 100 crore rupees, as a class of registered person who shall prepare invoice in terms of sub-rule (4) of rule 48 of the said rules in respect of supply of goods or services or both to a registered person; Effective date to be 1st day of April, 2020, However, this notification was superseded by NN. 13 of 2020 which changed effective date to 1st October 2020 due to spread of COVID-19.
  3. Implementation:
    • Phase I : For taxpayers with an aggregate turnover of more than Rs.500 crore commenced on October 1, 2020, as per NN. 61/2020-Central Tax and NN. 71/2020-Central Tax.
    • Phase II: Starting January 1, 2021, e-invoicing was expanded to taxpayers with an aggregated revenue above Rs.100 crore, as per NN. 88/2020.
    • Phase III: on April 1, 2021, CBIC issued Notification No. 5/2021, requiring businesses with a turnover of more than Rs.50 crore to begin adopting e-invoicing.
    • Phase IV: Starting April 2022, CBIC issued Notification No. 1/2022 on February 24, 2022., requiring businesses with a yearly turnover of between Rs.20 crore and Rs.50 crore to implement the e-invoicing system.

What is aggregate Turnover?

Section 2(6) of the CGST Act describes “Aggregate Turnover” means the aggregate value of

  1. all taxable supplies less value of inward supplies on which tax is payable by a person on reverse charge basis, 
  2. Exempt supplies,
  3. Exports of goods or services or both and 
  4. Inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

As per the No. 13/2020 amended vide Not. No. 70/2020 and not. No. 88/2020, Aggregate Turnover in any preceding Financial Year from 2017-18 onwards needs to be considered to ascertain the applicability of E-Invoicing. The Aggregate Turnover is as per GST Returns.

Exemptions from E-Invoicing

In 39th meeting held on 14th March, 2020, GST Council recommended certain classes of registered persons to be exempt from issuing e-invoice as follows: -

  • Special Economic Zone Units (SEZs)
  • Insurer or
  • banking company or
  • financial institution, including a non-banking financial company
  • goods transport agency supplying services in relation to transportation of goods by road in a goods carriage
  • Suppliers of passenger transportation service
  • Suppliers of services by way of admission to exhibition of cinematograph films in multiplex screens

Format of E-invoice

Notified via Notification No. (Central Tax) 68/2019 Dt. 13-12-2019

  1. Invoice shall prepared as per Form GST INV-01 after obtaining an Invoice Reference Number by uploading information contained therein on the Common Goods and Services Tax Electronic Portal bearing QR code.
  2. Commissioner may, on the recommendations of the Council, by notification, exempt a person or a class of registered persons from issuance of invoice under this sub-rule for a specified.


  1. Any invoice issued by such person in any manner other than the manner specified in the said sub-rule shall not be treated as an invoice.
  2. Copies of e-Invoice so prepared shall not be marked as Original for Recipient, Duplicate for Transporter or Triplicate for Supplier.

Phase wise changes in invoice formats:

Notification No. 60/2020 Dt. 30-7-2020

  1. Central Goods and Services Tax (Ninth Amendment) Rules, 2020
  2. New form substituted for GST INV-01 notfctn-60-central-tax-english-2020.pdf (

Notification No.  72/2020 Dt. 30-9-2020

  1. In rule 46, after clause (q), below clause is inserted: “(r) Quick Reference code, having embedded Invoice Reference Number (IRN) in it, in case invoice has been issued in the manner prescribed under sub-rule (4) of rule 48.”

Links for Gnerating an e-invoice?

Pursuant to Notification No. 69/2019 Dt. 13-12-2019, CBIC notified 10 Common Goods and Services Tax Electronic Portals for the purpose of preparation of invoice in terms of rule 48 (4) :;;;;;;;;;

How to Cancel/Amend a Reported Invoice?

  1. Where needed, the seller can cancel IRN for an e-invoice already reported within specified time.
  2.  Amendment of e-invoice already uploaded on IRP will be done only on GST portal, while filing GSTR-1.
  3.  Amendment of invoices is not possible through the IRP.

Advantages of e -invoice for businesses

  1. E-invoice has many advantages for businesses such as Auto-reporting of invoices into GST return, auto-generation of e-way bill (where required).
  2. Facilitate standardisation and inter-operability leading to reduction of disputes among transacting parties. E-Invoices prepared with one piece of software may be read by another.
  3. Improve payment cycles,
  4. Reduction of processing costs and
  5. Improves overall business efficiency.
  6. Eliminates mismatch mistakes, e-Invoice resolves and plugs a critical gap in data reconciliation under GST.
  7. E-invoice allows for real-time tracking of invoices prepared by the supplier.
  8. Backward integration and automation of the tax return filing process – necessary invoice details would be auto-populated in various returns, particularly when creating part-A of e-way bills.
  9. Genuine input tax credit is becoming more readily available.
  10. Lower likelihood of audits/surveys by the tax authorities because the information required by the tax authorities is available at the transaction level.

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