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September 2, 2025

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Basics of GST

All About E-Invoice and Other Similar GST Instruments

Imagine a system where business invoices are verified very fast, and also with leaving no room for error, that is exactly what e-invoicing under GST is there for. Introduced by the GST council, eligible businesses must upload invoices to the Invoice Registration Portal (IRP), which generates a unique Invoice Reference Number (IRN) and QR code for validation. It mainly applies to B2B transactions, exports, and other notified supplies for businesses. Alongside e-invoicing, there are other similar instruments which each play their vital role in ensuring smooth goods movement, accurate record-keeping, and GST compliance. This article is a breakdown of all that it covers, e-invoice: meaning, purpose, applicability, elements and other similar GST instruments like e-way bills, tax invoices, bill of supply, receipt vouchers, and delivery challans

What is an E-invoice under GST?

E- invoice stands for electronic invoice. It means that businesses must report their invoices (bills), which are created by them, to a government-notified portal called the Invoice Registration Portal (IRP), and after reporting to the portal, they obtain a reference number. It was introduced in the GST Council in its 37th meeting dated 20 September 2019, to revolutionise the way businesses interact with each other by enhancing ease of doing business. Businesses with a turnover of more than 5 crore must generate an e-invoice under GST.

Benefits of E-invoice

1. Automation of GST reporting: Businesses only need to report their invoices on the portal once, and the same data can only be used once for GSTR1, e-way bill and other GST forms, which minimises duplicate work, avoids errors and helps buyers match invoices with their purchase orders

2. Improves business efficiency: E-invoice promotes standardisation and interoperability, which reduces disputes between transacting parties, improves payment cycles, and lowers the processing costs.

3. Minimises Tax evasion: It creates one trail of all b2b invoices together, allowing the system to match with input credit with the output tax.

4. Fraud Protection: It eliminates fake invoices, which helps in regulating transparency and honesty in the GST system

Applicability of e-invoicing

Businesses with a turnover of more than Rs 5 crore have to generate e-invoices under GST regulations. This document is applicable to certain supplies, which include Business-to-Business (B2B) transactions, supplies made to Special Economic Zones (with or without payment), exports (with or without payment), and deemed exports.

And with certain supplies where e-invoicing is not applicable, which include SEZ units, insurers, banking and financial institutions (including NBFCs), Goods Transport Agencies (GTA) supplying road transport services, passenger transport service providers, cinematograph exhibitors in multiplexes, persons registered under Rule 14 of CGST for OIDAR services, and government departments or local authorities.

Process of e-invoicing

1. Document Creation

The documents covered under the e-invoice are invoices, credit notes and debit notes, which are issued by notified taxpayers to registered persons or for exports. Invoice details must be sent to IRP in JSON format

2. Invoice Creation

Taxpayers continue to create their invoices on their own Accounting/Billing/ERP Systems (not on a government portal).

3. IRP Reporting

Created invoice is reported to the Invoice Registration Portal(IRP)

4. IRN Generation

On reporting, the IRP generates a unique Invoice Reference Number (IRN), digitally signs it, and returns the e-invoice. A GST invoice is valid only with this IRN.

5. QR code Creation

The system also generates a QR code containing the IRN and other key details, which can be printed on the invoice for offline verification.

6. Successful Reporting

Upon successful reporting, the supplier receives a digitally signed JSON that includes the QR code.

7. Readable / Printed e-invoice

This JSON can be converted into a readable PDF or printed as a paper invoice with the entity’s logo and other information. Both printed and PDF always carry the QR code.

Understanding elements of the e-Invoice System

1. Unique Invoice Reference Number (IRN)

It is created using a hash, which combines the GSTIN of the document generator (invoice, credit note, or debit note) financial year, the document type, and the document number, such as the invoice number to be published in the e-invoice standard, and it ensures that every invoice is unique and no duplicate exists. To ensure no duplication, the registrar checks the hash with the Central Registry of the GST System. If the same IRN already exists, then it gets rejected; only the unique and new invoices are accepted.

2. Digital Signing of e-Invoice by the Invoice Registration Portal (IRP)

After uploading invoice details on the IRP, ie, registered portal, the system generates the IRN and digitally signs the e-invoice using its private key. This makes the e-invoice valid for the document generator business. The IRP also sends the signed invoice to both the GST system and the E-Way Bill system.

3. QR code with key details

The IRP generates a QR code containing a unique IRN (hash), important invoice details, and its digital signature. The QR code helps in quick verification even without the internet, for example, during a road check by officers. The QR code includes details like GSTIN of the supplier as well as the recipient, invoice number, date of generation, invoice value (taxable and gross tax), number of line items, HSN code of the main item and the unique IRN. Any tampering will make the e-invoice invalid as the digital signature will fail. A mobile app for tax officers/buyers and GST/E-Way Bill systems can be used to verify it. The work of IRP itself is not to store invoices; it only registers, verifies, and generates IRNs and QR codes.

4. Multiple Registrars/IRPs

To ensure smooth 24-hour operations, multiple registrars will be introduced. Initially, the National Infographic Centre( NIC ) will serve as the first registrar, with additional IRPs added

5. Standardisation of e-invoice

The GST council has set up a technical team that has developed an e-invoice standard after industry consultation. The template has since been notified as Form GST-INV-1.

Check out this template/schema provided on Form GST-INV-1.

6. Multiple modes for reporting

Taxpayers can report the e-invoice through various modes like APIs, mobile apps, offline tools or GSPs. With APIs, ERP/accounting software can directly connect to IRP to upload invoice data and get back the signed e-invoice with IRN. APIs can allow bulk uploads just like the e-way bill system.

7. Printing of e-invoice

Once the supplier receives the signed JSON from the IRP, it can be converted into a readable format and printed. The printed e-invoice includes company details, logo, even though reporting can be done electronically supplier can use a physical form which paper format

8. Cancellation of e-invoice

A seller can cancel an IRN if required, but only within a fixed time after generation. This is done using the “Cancel IRN” API on the e-invoice portal. After cancellation, the same invoice number cannot be used again in the future.

9. Amendment of e-invoice

Any modification to the e-invoice already uploaded must be made on the GST portal. If a changed e-invoice is resubmitted to the IRP, it will be rejected since the IRN (hash) is already recorded in the IRP system; therefore, amendments cannot be processed through the IRP system.

Other similar instruments of GST

E-Way Bill

It is for enrolled/ GST registered transporters to create a waybill (document to be carried by the person in charge of conveyance) for the movement of goods valued more than Rs 50,000, and it must be created before the dispatch for reasons not than supply or due to incoming supply from a non-registered person. It has streamlined the movement of goods by eliminating old state border checks with an online centralised system. This system keeps details of everything from date, value of goods, transport details, reason of transportation, HSN code, Vehicle number for road transportation, and place of delivery in this bill, making every detail open to view and keeping companies GST compliant.

Read more about: Recent Updates on E-Way Bills

Tax invoice

It is a mandatory document under GST for every registered seller to issue tax invoice for every supply of goods and services, showing the sale of goods or services and the amount due for payment, including applicable taxes, serving a proof of transaction and used for tax reporting and compliance, this document includes information of seller and buyer like name and contact, a unique invoice number, the invoice date, a description of goods or services, price of goods or serrvice, total amount due, quantity, applicable taxes like GST or VAT, and the payment terms. This document is important as it acts as evidence of a transaction, ensures proper tax compliance, and allows businesses to claim input tax credit. They also help in accurate record-keeping for accounting and financial statements.

Learn more about: Different types of invoices

Bill of supply

It is a document under GST when a registered person cannot GST invoice in the scenario of exempt goods or services or when operating under the Composition Scheme. It is different from a tax invoice; it does not include GST details, but records the transaction. The documents contain details like the buyer’s information, like name, address, GSTIN (if registered), a unique Bill of Supply number, date of issue, description of goods or services, value, and HSN code. The purpose of this document is to serve as legal proof of supply, ensure compliance with GST rules, accurate record-keeping, and simplify business operations who are not allowed to collect GST in some cases.

Receipt voucher

It is a document issued by a registered taxpayer in the case of receiving an advance payment for goods and services. It acts as proof that the customer has already made payment in advance, and it acts as a record for both the supplier as well as buyers. This document contains details like the GSTIN, name and address of the supplier and recipient, a unique serial number, the date of issue, a description of the goods or services, the advance amount, applicable tax rate and tax amount, the place of supply with state name and code in case of inter-state supply, digital signature of the supplier. The purpose of this document is that make easy verification of payments, help in handling refund claims smoothly, and ensure compliance with GST rules.

Delivery challan

It is a document under the GST rules which keep record of transporting and shipping of goods, it ensure smooth communication between between vendors and buyers during the movement of goods in this the registered person transporting goods required a proper documentation with necessary details which include the name, address and GSTIN of both the vendor and buyer the HSN code, a description of the goods being delivered, the quantity and rate of goods with the amount shown, the signature of the supplier, the date of issue, a unique serial number, the place of supply, and the amount of tax wherever applicable. The purpose of this document is to allow goods to be sent for job work or special processing without being treated as a taxable sale. It also makes it easier to handle returns or rejected goods, helping them move back into the supply chain without any issues and ensuring compliance with GST rules by managing stock better.

Suggested guide on how to create a delivery challan using the website: Swipe Portal

Conclusion

E-invoice and other GST instruments are necessary for strong and reliable tax compliance. E-invoices introduce efficiency with automation, decrease the risk of fraud, and ease audits, while other GST documents like e-way bills, invoices, challans, and vouchers facilitate smooth business operations every day. Altogether, this uniform and technology-driven approach not only supports the tax management process for businesses but also brings more trust, accountability and equity within taxation purposes.

FAQs

1. For whom is an e-invoice not applicable?

E-invoicing does not apply to SEZ units, banks/insurers/NBFCs, GTA, passenger transport, cinema multiplex services, OIDAR, and government departments/local authorities.

2. What is the validity of an e-invoice generation?

For generations, invoices must be uploaded to the IRP within 30 days of the invoice date.

3. What is the turnover limit for an e-invoice?

The turnover of the business should be more than 5 crore to generate an e-invoice

4. Is a QR code important for an e-invoice?

Yes, for an e-invoice. QR code is compulsory. The Invoice Registration Portal generates a QR code for an e-invoice

5. What is the difference between an e-invoice and a receipt?

An e-invoice is a detailed, VAT-compliant document with details like customer, tax, and transaction details used for legal and audit purposes, while an e-receipt is a simple proof of payment for business and proof of purchase for the customer, showing only amount, method, and date, and is not useful for tax compliance.

6. What are credit notes and debit notes under GST?

A Credit Note is a document a seller gives to a buyer when the value of goods or tax charged is higher than the original value, or when goods are returned or found faulty. It reduces the amount the buyer has to pay, whereas a debit note is a document a buyer gives to a seller when the goods received are unsatisfactory or returned. It shows the buyer’s claim for a refund or adjustment.

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