Who must issue an e-invoice under GST?
E-invoicing is mandatory when aggregate turnover exceeded ₹5 crore in any financial year from 2017-18 onwards. The supplier reports each B2B invoice, export invoice, and invoice to an SEZ to the Invoice Registration Portal, which returns an invoice reference number and a QR code. A bill to a consumer is not reported.
Who must e-invoice?
The test is at PAN level. If any GSTIN on that PAN crossed ₹5 crore of aggregate turnover in any year from 2017-18, every registration on the PAN reports the invoices that the rule covers. The duty started for this threshold on 1 August 2023 and remains the limit. A later year below ₹5 crore does not switch it off.
The older thresholds, including ₹100 crore and ₹500 crore, were steps on the way to this limit. They are not the test used now.
Five crore, once. Crossing ₹5 crore in any year from 2017-18 keeps e-invoicing on for that PAN.
What does the portal return?
The supplier prepares the tax invoice in their own system and sends the specified fields to the Invoice Registration Portal. The portal returns an IRN and a QR code. Those are printed on the invoice the customer receives. The details then flow to the GST portal and, where the movement needs it, to the e-way bill system.
An invoice that should have an IRN and does not have one is not a valid e-invoice. The customer cannot treat it as the document for input tax credit.
Which invoices are reported?
- A B2B tax invoice, including a supply to another GSTIN of the same PAN in another state.
- An export invoice, and an invoice for a supply to an SEZ unit or developer.
- A deemed export, where the notification treats it as a reported supply.
A credit note and a debit note for a reported invoice are reported as well. The HSN digits on that invoice are six, because the turnover is already above ₹5 crore. The other invoice fields are on the GST invoice page.
Who stays outside it?
A composition dealer does not e-invoice. The notified classes that stay outside include an SEZ unit, a bank, an insurer, a goods transport agency, a passenger transport service, a cinema admission, and a government department. A business that is not in those classes still tests the ₹5 crore line. A B2C invoice of a covered business is issued, but it is not sent for an IRN.
Frequently asked questions
Four questions cover a later fall in turnover, a B2C bill, the supplier’s own invoice, and composition.
Does a later fall in turnover end the duty?
No. Once aggregate turnover has crossed ₹5 crore in any financial year from 2017-18, e-invoicing continues for that PAN even if a later year is below the line.
Is a B2C bill reported to the portal?
No. E-invoicing covers B2B invoices, export invoices, and invoices to an SEZ. A bill to an unregistered consumer is not reported for an IRN.
Does the portal replace the supplier’s invoice?
No. The supplier still issues the tax invoice. Reporting it to the Invoice Registration Portal adds the IRN and the QR code. The portal is not a second invoice.
Does a composition dealer e-invoice?
No. A composition dealer issues a bill of supply and stays outside e-invoicing.
Sources
The threshold is the e-invoice notification as it stands for turnover above ₹5 crore from 1 August 2023. The invoice fields are on the GST invoice page.