Simplifying the concept of e invoice under GST: GST e invoice

In India, the concept of e invoice under GST denotes electronic invoicing defined by the Goods and Services Tax (GST) law. An electronic invoice, also known as an e-invoice, is a digital document that is shared electronically between a customer and a supplier and is verified by the government tax portal.

Business-to-business (B2B) invoices are digitally created in an e-invoicing format and verified by the Goods and Services Tax Network (GSTN) under the proposed e-invoicing system. This method makes sure that all companies transmit invoices to the GST portal using the same format.

What is the concept of e invoice under GST in India?

The concept of e invoice under GST is a system where B2B invoices are electronically authenticated by GSTN on a common portal. It was initially for large enterprises but now includes mid-sized and small businesses. Instead of generating invoices on the GST portal, it involves submitting pre-generated invoices on a common e-invoice portal.

Each invoice is assigned a unique identification number by the Invoice Registration Portal (IRP), streamlining reporting and eliminating manual data entry for GSTR-1 returns and e-way bills. A draft e-invoice was made available to the public by the government in August 2019, but the GST Council later changed it to comply with their rules.

The standard format not only facilitates compliance but also ensures interoperability throughout GST ecosystems because it is adhered to by all companies. All tax invoices, credit notes, and debit notes for taxable sales of goods or services to businesses, sales of goods or services to the government, exports, deemed exports, supplies to Special Economic Zone (SEZ), stock transfers, or supply of services to an individual, SEZ developers, and supplies under reserve charged under Section 9(3) of the CGST Act are covered under Section 24 of the CGST Act.

What components are responsible for GST e invoice system?

Two components make up the flow of a GST e invoice system are:

  1. Interaction between the buyer, the GST/e-Way Bill systems, and the Invoice Registration Portal (IRP).
  2. Business-to-IRP communication.

How to generate an e invoice under GST?

Invoices will be generated by taxpayers in the same manner as before, however reporting will now be completed online. Taxpayers must adhere to the e-invoice schema and provide the necessary information in line with it.

The following is a list of required and elective parameters:

  • Transactional information such as supplier type and tax scheme.
  • Details of the document: type, number, and date.
  • Details about the supplier including legal name, GSTN address, location, state code, and PIN.
  • Purchaser details such as full name, GSTN, address, state, and PIN codes.
  • Dispatch from address information (required if it differs from supplier information).
  • Shipping information (required if it differs from the buyer’s address).
  • Information on the item, such as the item’s total value, GST rate, assessable amount, HSN code, service or goods, and total amount.
  • Add the batch number, if the objects are being relocated in batches.
    Assessable values and the overall invoice amount are included in the invoice information.

In addition to the required requirements, the Council provided a list of optional parameters that might be modified in response to business needs. A taxpayer must determine whether the accounting or billing software can produce a JSON file that can be uploaded to the IRP after the invoice fields have been finalized.

To whom does the concept of e invoice under GST not apply?

Let’s move on to discuss the registered person who, according to Central Board of Indirect Taxes & Customs (CBIC) Notification No. 13/2020, is exempt from e-invoicing regardless of yearly turnover.

  • Companies free from electronic billing
  • SEZ apartments. Notification No. 61/2020 from CBIC.
  • An insurer, a bank, or any other type of financial institution, including a financial business that is not a bank.
  • commodities transport company offering advice on goods carriage transit over the road.
  • providers of services for passenger transportation.
  • providers of services in exchange for entry to a cinematograph film show on multiplex screens.
  • A local authority and a department of government. Notification No. 23/2021 from CBIC
  • Individuals enrolled under CGST Rules, Rule 14 (OIDAR).

What kind of documents are exempted from e invoicing?

Documents exempted from e invoicing
  • Delivery Challans
  • Bill of Supply
  • Financial or Commercial Credit Note or Debit Note
  • Bill of Entry
  • ISD Invoices

What transactions are exempted from the concept of e invoice under GST?

Transactions exempt from the concept of e invoice under GST are:

  • Any sales to consumers from businesses (B2C) sales
  • B2B sales of goods and services that are zero-rated, non-taxable, or exempt
  • B2G sales of products and services that are zero-rated, non-taxable, or exempt
  • High maritime sales, imports, and sales from bonded warehouses
  • Section 9(4) of the CGST Act covers supplies under reverse charge for Free Trade and Warehousing Zones (FTWZ).

What are the advantages of e invoicing for enterprises?

  • E-invoicing aids in accuracy and data reconciliation.
  • It makes business-to-business inter operability possible.
  • Electronic invoices are real-time trackable.
  • The tax return procedure will be simplified by the auto-population of e-invoice details on tax return forms and e-way bills.
  • Every transaction detail will always be accessible online. This would do away with the requirement for regular surveys and audits. By contrasting input credit and output tax, discrepancies in the data can be identified.
  • By assisting in the detection of fraudulent invoices, this will increase efficiency in the tax administration process.

A new age of efficiency, accuracy, and openness in business and tax compliance is heralded by the introduction of the concept of e invoice under GST. Businesses stand to gain operational agility, competitiveness in an increasingly digital world, and compliance as they hold this digital revolution.

Present-day GST e invoice concept system

These days, a seller-generated invoice has to be developed and submitted to the GST Portal and e-Way Bill, two separate processes.

Companies use various tools to create invoices, and the taxpayer enters the invoice details into a GSTR-1 return by utilising an appropriate API. The same data is shown on a GSTR-2A, which recipients with “view only” authorization can access.

Transporters must simultaneously produce the e-Way Bill, either automatically or by manually inputting the invoices. The new return mechanism was introduced by the GST council to eliminate this never-ending paperwork trail.

  • For two reasons, tax administrations around the world are keen to see the e-invoicing system succeed:
    • Invoices can be shared with ease when they adhere to a common format. 
    • The central system can read invoices.

By using e-invoicing, fields will be filled in for you when you file your returns, preventing errors from occurring during data entry and reconciliation.


The concept of e invoice under GST is a digital system for B2B invoices in India, streamlining reporting and eliminating manual entry. While initially for large businesses, it now includes mid-sized and small players. Businesses generate invoices as usual but submit them on a common e-invoice portal for authentication.

This auto-populates GSTR-1 returns and e-way bills, reducing errors and paperwork. Overall, the concept of e invoice under GST improves accuracy, compliance, and operational efficiency for businesses and the tax administration.


1. What is the concept of e invoice under GST in India?

The concept of e invoice under GST in India streamlines manual data entry, ensuring accurate records. It promotes interoperability between businesses, enabling real-time tracking of invoices. Additionally, e-invoice details are automatically filled in tax forms and e-way bills, simplifying the tax return process.

2. How many types of e invoice are there in the concept of e invoice under GST?

There are two main types of e-invoicing systems in the concept of e invoice under GST; Point-to-point connections, like EDI invoicing, where buyers and sellers connect directly; and other forms of e-invoicing systems.

3. Who needs an e invoice?

Since April 2020, the Indian government has required businesses with a turnover exceeding INR 10 crores to implement e-invoicing, as part of the Goods and Services Tax (GST) regulations.

4. What is the latest e-invoice limit?

INR 5 Crores
Starting from August 1, 2023, the CBIC has lowered the e-invoice limit to INR 5 crores. Businesses with a turnover above INR 5 crores must now generate e-invoices for all B2B transactions.

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