Demystifying EInvoicing in India via IRP- Regulations, Status, and Updates
| Country | India |
| Status - B2G | Mandatory |
| Status - B2B | Mandatory for taxpayers with aggregate turnover >Rs.5Cr |
| Status - B2C | Mandatory for taxpayers with aggregate turnover >Rs.500Cr |
| Formats | QR on Invoice, PDF |
| Authority | GST Council |
| Network name | Invoice Registration Portal (IRP) |
| Legislation | Rule 48(4) of CGST Rules 2017 |
Overview
India follows clearance model for einvoicing. The invoices generated by the supplier needs to be registered with the IRP (Invoice Registration Portal). On successful registration IRP returns a IRN (Invoice Reference number) and a QR code in the response. This QR code and the IRN number needs to be printed on the invoice before sending it to the buyers
Who need to generate einvoices ?
Einvoicing is mandatory for all b2b merchants with annual turnover of more than 5cr in any financial year from 2017-18 with effect from 1st August 2023. The current limit is 10 cr.
Entities/Persons exempted
The following list of entities are exempted from issuing einvoices in India
- SEZ Units
- Insurance
- Banking (including NBFCs)
- Goods Transport Agency (transporting goods by road in goods carriage)
- Passenger Transport Services
- Multiplex Cinema Admissions
Editing an einvoice
You can't delete or modify an IRN or invoice once it is generated. However, it can only be cancelled and you can report a new document a with new invoice number and generate a fresh IRN (ideally issue credit note and then generate a new invoice). Cancellation of an IRN is allowed only within 24 hours of its generetion. An IRN cannot be cancelled, if a valid or active ewaybill exists for the same.
Differnce Between B2B and B2C eivoices
- B2B einvoices - These einvoices are generated by submitting the invoice to the IRP portal. The einvoices should cointain an IRN (Invoice Reference Number) and a QR code issued by the IRP.
- B2C einvoices - These einvoices are not registered with the IRP portal. It contains a QR code generated by the merchants themselves. The QR code is supposed to enable digital payments. Hence it should ideally be a UPI static/dynamic QR code. This case be generated by any of the digital payment providers.
B2C einvoices
B2C einvoices in India are nothing by invoices with a dynamic QR code.
Type of transactions on which Dynamic QR code needs to be displayed
Dynamic QR code needs to be captured in all the B2C (business to consumers) invoices. In simple words, on all the supplies made by a registered business to unregistered persons, a dynamic QR code needs to be captured.
Type of businesses who need to display dynamic QR code for B2C invoices
All the businesses whose annual turnover exceed 500 crores in any preceding financial year (starting from 2017-18) are mandated to display QR code on their B2C invoices from 1st December 2020.
Parameters/ details to be captured in the Quick Response (QR) Code
Dynamic QR Code should be such that it can be scanned to make a digital payment. The following are the details that need to be captured in dynamic QR code -
- Supplier GSTIN number
- Supplier UPI ID
- Payee’s Bank A/C number and IFSC
- Invoice number & invoice date,
- Total Invoice Value
- GST amount along with breakup i.e. CGST, SGST, IGST, CESS, etc.
Generating dynamic QR code B2C invoices
Businesses should generate dynamic QR code for B2C invoices using their own QR code generating machines and algorithms. Here, IRN generation is not required and you need not upload B2C invoices to IRP. If uploaded, IRP will reject such invoices.
Latest updates
Latest updates on Einvoicing
10-May-2023E-Invoicing threshhold limit reduced to Rs. 5 Crore from 01st August 2023- CBIC issued a notification mandating businesses with turnover of over 5 crore required to generate e-invoice from August 1. The current limit is 10cr. Learn More