E-Invoicing in GST

GST Invoicing
GST Invoicing

As per Rule 48(4) of the CGST Rules, notified class of registered persons have to prepare e-invoice and obtain an Invoice Reference Number (IRN). Thereafter, invoice copy containing IRN (with QR Code) is generated. It has many advantages including reduction of disputes amongst transacting parties, auto-generation of e-way bill etc.

This E-Invoice is mandatory only for those taxpayers whose Aggregate Turnover exceeds Rs. 5 cr. This limit was reduced from Rs. 500 cr. to Rs. 100 cr. to Rs. 50 cr. to Rs. 20 cr. to Rs. 10 cr. and finally with effect from 01.08.2023 vide Notification No. 10/2023- Central Tax dated 10.05.2023, it was reduced to Rs. 5 crores.

One time registration is required to be done on Invoice Generation Portal of GST Department.

The procedure for generation of e-invoice is as follows:

  • First of all, organization has to generate simple invoice in their own accounting software such as Tally, Bizzy or any other ERP system.
  • The login to Invoice Generation Portal and feed the invoice details.
  • Then e-invoice is generated with digital signature of the authorized signatory.
  • The same can then be issued to the receiver.

It is required to be issued in case of B2B sales, supplies to Special Economic Zones, Exports and Deemed Exports. Also, few entities/sectors are currently not required to issue e-invoice. Those are: SEZ, Insurers, Banking companies or financial institutions, Goods Transport Agency, Supplier of passenger transportation service, Supplier of services by way of admission to exhibition of cinematograph films in multiplex screens, Persons registered in terms of rule 14 of CGST Rules, Government Authority and Local authority.

Furthermore, it is not required for NIL rated or wholly exempt supplies.


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