Overview
E-invoicing means that a business-to-business invoice is reported to the government's Invoice Registration Portal, which returns a unique Invoice Reference Number and a QR code that must appear on the invoice. It applies to registered taxpayers whose aggregate turnover crossed the notified limit in any year since 2017-18, which is currently five crore rupees.
An e-way bill is an electronic document that must accompany a consignment of goods when its value is above the prescribed limit, with certain exceptions. It carries details of the goods, the supplier and recipient, and the vehicle used for transport.
The two are connected. When an e-invoice is generated, the data can flow to the e-way bill system, saving a second entry. We help you pick the cleanest route for your billing software and train your team on exceptions such as cancellations and corrections.
Does this apply to you?
The answer depends on your turnover, the nature of your sales and whether goods are moving.
Usually a good fit if
- Your aggregate turnover has crossed the notified e-invoicing limit in any year since 2017-18.
- You issue B2B invoices, supply to SEZ units, or export goods or services.
- You transport goods whose consignment value is above the e-way bill limit.
- You use billing software that needs to be connected to the portals.
Think twice if
- Your turnover is below the limit and you only sell to consumers; e-invoicing is not required, although e-way bills may still apply to movement of goods.
- You are exempt by category, for example certain insurers, banks and goods transport agencies; the exemptions are specific, so we confirm before you assume.
Key benefits
Penalty avoidance
An invoice without a valid IRN can be treated as not issued, which affects your buyer's input tax credit.
Faster buyer matching
Your invoices flow to the GST system and match more smoothly in your customers' returns.
Less manual work
Return details auto-populate from the portal where integration is in place.
Safe transport of goods
A valid e-way bill avoids detention and penalties in transit.
Cleaner audit trail
Every invoice and movement has a government record.
Process discipline
Billing, dispatch and accounts work from the same data.
What we need from you
Most of what we need comes from your billing and dispatch records.
To determine applicability
- GSTIN and GST registration details
- Aggregate turnover for each year since 2017-18
- Nature of supplies: B2B, B2C, export, SEZ, exempt, nil-rated
To set up e-invoicing
- Details of your billing software or accounting package
- Sample invoices and credit and debit note formats
- Authorised user for the e-invoice portal and API access
To set up e-way bills
- Transporter details and IDs
- Typical routes and vehicle types
- Master of items with HSN codes and units
How the process works
Applicability check 1 day
We examine turnover, supply types and exceptions to confirm what applies to you.
Billing software review 1 to 3 days
We check whether your software can produce the required invoice data, or recommend options.
Portal registration and integration 2 to 5 days
We register on the portal, set up access and connect the billing system or a utility.
Test invoices and movements 1 to 2 days
Several dry runs confirm the IRN, QR code and e-way data come out correctly.
Team training Half a day
Your billing and dispatch teams learn cancellations, amendments and Part B updates.
Ongoing monitoring Monthly
Monthly checks catch missed e-invoices and expired or missing e-way bills.
How long it takes
| Applicability and review | 1 to 4 days |
| Integration and testing | 3 to 7 days |
| Training | Half a day |
| Overall | Usually within 2 weeks |
Timing depends on how adaptable your billing software is.
Day-to-day rules your team should know
These are the points where errors most often creep in.
- Invoice reportingReport each applicable invoice promptly; for larger taxpayers there is a time limit from the invoice date, which we confirm for your case.
- Cancellation windowAn e-invoice can be cancelled only within a limited time; after that, a credit note is needed.
- Credit and debit notesThese also need e-invoicing where they relate to applicable B2B invoices.
- E-way bill validityValidity is linked to the distance travelled, and it can be extended in permitted situations.
- Change of vehicleUpdate Part B when the vehicle changes during transit.
E-invoice compared with e-way bill
| E-invoice | E-way bill | |
|---|---|---|
| What it covers | The invoice itself | Movement of goods |
| Applies to | Taxpayers above the turnover limit | Consignments above the value limit |
| Generated on | Invoice Registration Portal | E-way bill portal |
| Output | IRN and QR code | E-way bill number |
| Validity | Does not expire | Limited by distance covered |
Frequently asked questions
What is the e-invoicing turnover limit?
At present it applies to registered taxpayers whose aggregate turnover exceeded five crore rupees in any financial year from 2017-18. The limit has been lowered in stages, so we confirm the current position when we start.
Do B2C invoices need an IRN?
Generally no. E-invoicing is for business-to-business, export and certain other supplies. B2C sellers with larger turnover may have a dynamic QR code requirement instead.
When is an e-way bill needed?
When goods are moved with a consignment value above the prescribed limit, subject to listed exceptions. It is needed even for some supplies within the same state, depending on state rules.
Can I generate the IRN myself from the portal?
Yes, for small volumes. Businesses with regular volumes normally use software that does it automatically.
What if I forget to generate an e-way bill?
Goods in transit without a valid e-way bill can be detained and penalised, so it is best to build the step into dispatch.
Does the buyer get input tax credit on an invoice without an IRN?
Where e-invoicing applies, an invoice without an IRN is not treated as a valid tax invoice, which can put the buyer's credit at risk.
This page is general information to help you prepare, not legal, tax or professional advice for your situation. Rules, forms, thresholds and due dates change, so we confirm the current position before we file anything for you. Taxswami Consultants is an independent professional services firm and is not a government body.