GST E-Invoice — Who Needs It, How to Generate & Compliance Guide 2026
By Parul Singh, GST Practitioner · GST Compliance · Updated June 2026
Table of Contents
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What is GST E-Invoice?
In my 15+ years as a GST Practitioner in Karol Bagh, I have seen many regulatory changes, but e-invoicing is perhaps the most transformative. GST e-invoice is not a separate invoice that you generate on the GST portal. It is a system where you generate your invoice on your ERP/billing software, upload the JSON to the Invoice Registration Portal (IRP), and receive an Invoice Reference Number (IRN) and a QR code.
Official Reference: Notification No. 70/2020 -- Central Tax dated 30 September 2020 introduced e-invoicing for businesses with turnover above ₹500 crore. The threshold has been progressively reduced. Rule 48(4) of CGST Rules mandates e-invoicing for notified taxpayers.
Turnover Threshold and Applicability
| Turnover Threshold | Effective From |
|---|---|
| ₹500 crore | 1 October 2020 |
| ₹100 crore | 1 January 2021 |
| ₹50 crore | 1 April 2021 |
| ₹20 crore | 1 April 2022 |
| ₹10 crore | 1 October 2022 |
| ₹5 crore | 1 August 2023 |
As of 2026, all businesses with aggregate turnover exceeding ₹5 crore must generate e-invoices for B2B supplies.
📍 Real Example -- Textile Trader in Gandhi Nagar
A textile wholesaler in Gandhi Nagar had ₹7 crore turnover in FY 2023-24. Since his turnover exceeded ₹5 crore, he must generate e-invoices for all B2B sales. He was still issuing manual invoices and got a notice. I helped him integrate Tally with the IRP -- it took 3 days and ₹15,000. Now all his invoices are auto-reported to GSTR-1.
How to Generate E-Invoice -- Step by Step
- Create invoice in your billing software
- Generate JSON in the e-invoice format
- Upload JSON to the IRP via API or web portal
- IRP validates and generates IRN + QR Code
- Print QR code on your invoice
- E-invoice data auto-populates in GSTR-1
Who Is Exempt from E-Invoicing?
- SEZ units
- Insurance and banking companies (for specific supplies)
- Casual taxpayers and non-resident taxable persons
- B2C invoices (e-invoice applies only to B2B and exports)
Penalties for Non-Compliance
⚠️ Common Mistake: If you are required to generate e-invoices but fail to do so, the invoice is not a valid tax invoice under GST. Your buyer cannot claim ITC. Penalty under Section 122 can be up to ₹25,000 per invoice. I have seen businesses in Okhla face ₹5-10 lakh in penalties for systematically skipping e-invoicing.
Official Reference: Section 122 of the CGST Act 2017 prescribes a penalty of ₹25,000 or the tax amount (whichever is less) for each instance of non-compliance.
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Frequently Asked Questions
Is e-invoice mandatory for B2C sales?
No. E-invoicing is currently mandatory only for B2B supplies and exports. B2C invoices do not require IRN generation.
What is the time limit for generating e-invoice?
E-invoice must be generated on the IRP within 30 days from invoice date for taxpayers with turnover up to ₹100 crore.
Can I cancel an e-invoice?
Yes, within 24 hours of generation on the IRP. After 24 hours, cancellation can only be done through GSTR-1.
Is e-invoice same as e-way bill?
No. E-invoice is for reporting invoice details. E-way bill is for movement of goods. However, e-way bill can be generated simultaneously with e-invoice.
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