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E-Invoice Eligibility Checker

Instantly check if e-invoicing (IRN generation) is mandatory for your business. Get real-time eligibility status based on your annual turnover with current threshold limits and applicable dates.

Current Threshold
₹5 Crore Annual Turnover
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Check E-Invoice Eligibility

Current Rule: E-invoicing is mandatory for businesses with aggregate turnover above ₹5 crore in any preceding financial year from FY 2017-18 onwards.
Select the financial year for which you want to check
Enter your total aggregate turnover for the selected FY
Select your business category
Your registered state (for reference)

Understanding E-Invoice: Complete Guide

E-invoicing is an electronic system of invoice authentication where B2B invoices are electronically authenticated by GSTN for further use on the common GST portal. Under this system, an identification number called Invoice Reference Number (IRN) is issued against every invoice by the Invoice Registration Portal (IRP).

What is E-Invoice?

E-invoice does not mean generation of invoice on computers using accounting software. E-invoice means reporting the invoice details electronically to the GST system (Invoice Registration Portal) to get it authenticated and receive a unique Invoice Reference Number (IRN). Once authenticated:

Key Point: E-invoice is NOT about generating invoices electronically. It's about reporting them to IRP and getting IRN authentication. You can still create invoices in your billing software, but they need IRN authentication if e-invoicing is applicable to you.

Current E-Invoice Threshold Limits

Effective Date Turnover Threshold Notification
1st October 2020 ₹500 Crore and above Notification 61/2020
1st January 2021 ₹100 Crore and above Notification 88/2020
1st April 2021 ₹50 Crore and above Notification 05/2021
1st April 2022 ₹20 Crore and above Notification 01/2022
1st October 2022 ₹10 Crore and above Notification 17/2022
1st August 2023 ₹5 Crore and above Notification 10/2023

Who Must Generate E-Invoice?

E-invoicing is MANDATORY for:

  1. Turnover-Based: All businesses with aggregate turnover exceeding ₹5 crore in any preceding financial year from FY 2017-18 onwards
  2. All B2B Invoices: For both goods and services supplied to registered persons
  3. Export Invoices: Exports to foreign countries (SEZ considered as deemed exports)
  4. Credit/Debit Notes: Issued to registered persons

Who is EXEMPT from E-Invoice?

How E-Invoice Works: Step-by-Step

  1. Generate Invoice: Create invoice in your billing/accounting software as usual
  2. Upload to IRP: Upload invoice details to Invoice Registration Portal in JSON format
  3. Validation: IRP validates the invoice data (GSTIN, invoice number, etc.)
  4. IRN Generation: If valid, IRP generates a unique 64-character IRN (hash)
  5. Digital Signature: Invoice is digitally signed by IRP
  6. QR Code Generation: A digitally signed QR code is generated
  7. Return to Taxpayer: IRN and signed invoice (with QR code) is sent back
  8. Auto-Population: Invoice details auto-populate in GSTR-1
  9. E-Way Bill: If applicable, e-way bill is generated simultaneously

Important: E-invoice must be generated BEFORE the supply of goods or services. Once IRN is generated, the invoice cannot be edited. Any changes require cancellation of the original invoice and generation of a new one (within 24 hours).

Benefits of E-Invoicing

Documents That Require IRN

The following documents must have IRN if e-invoicing is applicable:

Documents that DON'T need IRN:

E-Invoice vs E-Way Bill

Aspect E-Invoice E-Way Bill
Purpose Invoice authentication Transport document
Applicability Turnover above ₹5 crore Consignment value above ₹50,000
Required For All B2B supplies Goods movement only
Services Yes, required Not required
Validity Permanent (until cancelled) Time-limited (1-15 days)
Integration Can auto-generate e-way bill Cannot generate e-invoice

Penalties for Non-Compliance

If you are required to issue e-invoices but fail to do so:

How to Start E-Invoicing?

  1. Check Eligibility: Use this tool to verify if e-invoicing applies to you
  2. Update Software: Ensure your billing software supports e-invoice JSON format
  3. Choose IRP: Select an Invoice Registration Portal (multiple IRPs available)
  4. Get API/GSP Access: Integrate your software with IRP via API or use GSP
  5. Test Environment: Practice on sandbox/test environment first
  6. Employee Training: Train your accounts team on the process
  7. Go Live: Start generating e-invoices for all eligible transactions
  8. Monitor Compliance: Regular checks to ensure all invoices have IRN

Common E-Invoice Errors & Solutions

Error Cause Solution
Invalid GSTIN Buyer's GSTIN is incorrect or cancelled Verify GSTIN on GST portal before generating invoice
Duplicate Invoice Number Same invoice number used before Maintain unique invoice numbering system
JSON Format Error Incorrect data format Validate JSON before upload; use standard schema
IRN Already Generated Trying to upload same invoice twice Check IRN status before re-upload
API Timeout Network or server issues Retry after some time; check internet connection

Tips for Smooth E-Invoice Compliance

  1. Invest in Good Software: Use reliable GST-compliant accounting software with e-invoice API
  2. Maintain Unique Invoice Series: Never duplicate invoice numbers
  3. Verify Buyer GSTIN: Always check GSTIN validity before invoice generation
  4. Generate Before Dispatch: Create e-invoice before goods/services delivery
  5. Save IRN Records: Maintain database of all IRNs for future reference
  6. Monitor Cancellations: Cancel incorrect invoices within 24 hours only
  7. Regular Backup: Keep backup of all e-invoice JSON files
  8. Stay Updated: Follow GST notifications for any changes in rules

Frequently Asked Questions (FAQs)

The current threshold for mandatory e-invoicing is ₹5 crore aggregate turnover. This applies to businesses whose aggregate turnover in any preceding financial year from FY 2017-18 onwards has exceeded ₹5 crore. The limit was reduced from ₹10 crore to ₹5 crore from 1st August 2023 via Notification 10/2023.
No, e-invoicing is NOT mandatory for B2C (Business to Consumer) transactions. It is only required for B2B (Business to Business) transactions where the supply is made to a registered person. For B2C sales, you can continue issuing regular invoices or bills of supply without IRN.
You can generate e-invoices manually through the e-invoice portal for a small number of invoices. However, for businesses with high transaction volumes, it's recommended to use GST-compliant accounting software with e-invoice API integration. This automates the process and significantly reduces the time and effort required. Most modern accounting software now includes e-invoice generation features.
IRN stands for Invoice Reference Number. It is a unique 64-character alphanumeric hash generated by the Invoice Registration Portal (IRP) for each e-invoice. Once generated, IRN remains valid permanently until cancelled. An IRN can only be cancelled within 24 hours of generation. After 24 hours, if you need to make changes, you must issue a credit/debit note.
If your aggregate turnover crosses ₹5 crore in the current financial year, e-invoicing becomes mandatory from the beginning of the NEXT financial year. For example, if you crossed ₹5 crore in FY 2023-24, you must start generating e-invoices from 1st April 2024 (start of FY 2024-25). However, it's advisable to set up your systems in advance to avoid last-minute issues.
E-invoicing is required for BOTH goods and services. If you are above the ₹5 crore turnover threshold and supplying to registered persons (B2B), you must generate e-invoices whether you're selling goods, providing services, or both. The only exception is for specifically notified categories like banking, insurance, GTA services, etc.
Non-compliance with e-invoicing can result in serious consequences: (1) It may be treated as supply without proper invoice under Section 122, attracting a penalty of 100% of tax amount or ₹10,000, whichever is higher; (2) Your buyer may not be able to claim Input Tax Credit (ITC) on that invoice; (3) Invoice details won't reflect in your GSTR-1 automatically; (4) You may face audit scrutiny and notices from GST authorities. It's crucial to comply if e-invoicing is applicable to you.
Yes, you can cancel an e-invoice, but only within 24 hours of IRN generation. After this window, cancellation is not permitted. If you need to make corrections after 24 hours, you must issue a credit note (for value reduction) or debit note (for value increase). When you cancel an e-invoice, make sure the goods/services have not been supplied, as cancelled invoices cannot be used for claiming ITC.
No, you don't need to generate them separately. When you generate an e-invoice on the IRP, if the transaction requires an e-way bill (consignment value above ₹50,000 and goods movement involved), the e-way bill can be generated simultaneously. You need to provide Part-B details (transporter and vehicle information) on the IRP itself, and both IRN and e-way bill number will be generated together. This saves time and effort.
No, e-invoicing is NOT applicable to composition scheme taxpayers. Composition dealers are not required to generate e-invoices regardless of their turnover. They continue to issue bills of supply as before. E-invoicing is only for regular taxpayers under the normal GST scheme who have crossed the ₹5 crore turnover threshold.

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