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Electronic invoicing in India

The electronic invoice (e-Invoice) is an essential component of tax modernization, transparency, and digitalization of the economy. In India, under the GST (Goods and Services Tax) regime, the electronic invoicing system with IRN (Invoice Reference Number) is one of the most prominent reforms to improve compliance, reduce fraud, and automate tax processes.

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Features of electronic invoicing in India

The GST regime (GST e-Invoice System) was introduced on July 1, 2017 as a unified indirect tax that replaced multiple state and federal taxes (service taxes, state excise taxes, internal tariffs, etc.).

Under this system, companies must periodically report sales, purchases, and input tax credits, which implies a significant administrative burden and the risk of errors or manipulation in invoicing records.

The e-Invoicing model is based on a clearance or validation model: before a B2B invoice is valid, it must be registered with the government. With this system, invoice data automatically feeds other processes: GST declarations, generation of e-way bills (documents for transporting goods), etc.

The electronic documents covered by the GST e-invoicing system are: B2B invoices, export invoices, credit notes and debit notes.

Obligation

  • As of October 1, 2020: Companies with a turnover of more than RS 500 crores in the last fiscal year.
  • As of January 1, 2021: Companies with a turnover of more than RS 100 crores in the last fiscal year.
  • As of April 1, 2021: Companies that have invoiced more than RS 50 crores in the last fiscal year.
  • As of April 1, 2022: Companies with a turnover of more than RS 20 crores in the last fiscal year.
  • As of October 1, 2022: Companies with a turnover of more than RS 10 crores in the last fiscal year.
  • As of August 1, 2023: Companies that have invoiced more than RS 5 crores in the last fiscal year. 

Mandatory administrative procedures

To issue electronic invoices, you must be registered with the GST portal and the government's e-invoicing or e-way bill portal and have a valid GSTIN code.

Invoice Format

Invoices must be prepared in JSON format according to form GST INV-1. 
The form is inspired by international standards (Peppol/Universal Business Language), adapted for the Indian market. 

Electronic signature

It is not mandatory to electronically sign electronic invoices.

Archiving

In India, electronic invoices must be archived for a minimum of 8+1 years from the close of the fiscal year in which they were issued.

e-Invoicing Workflow in India

India uses a "Clearance" model. For this purpose, the government has set up a series of portals called the Invoice Registration Portal (IRP).

Issuers of electronic invoices must submit their invoices to the IRP for validation prior to being sent to the customer. The invoice will only be legally valid if it obtains IRP approval. This is achieved by assigning a unique code called the Invoice Reference Number (IRN), as well as a QR code. The QR code contains specific verification data (supplier, recipient, invoice number, amount, IRN, etc.) and must be included on printed invoices.

Electronic invoice issuance form GST invoices

  1. The issuer automatically exports a data file to generate the electronic invoice.
  2. EDICOM's global invoicing platform converts the document into the JSON format required by the GSTC and sends it to the Invoice Registration Portal (IRP).
  3. The IRP validates electronic invoices by signing them and issuing the IRN code along with a QR code.
  4. EDICOM sends the validated electronic invoices to the recipient in the format chosen the parties.
  5. If necessary, an e-way bill can also be generated in the same way.

Electronic invoices reception form GST invoices

  1. The IRP receives an invoice intended for an EDICOM customer and validates it. EDICOM receives the validated invoice.
  2. EDICOM's Global Invoicing platform converts it into the format required by the customer's ERP, as previously agreed, to be directly integrated into the internal management system.

Get ahead of new mandates

Check the global compliance calendar and discover when e-invoicing and e-reporting regulations come into effect in each country.
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Electronic transport documents in India

In India, within the GST (Goods and Services Tax) framework, the e-Way Bill system is the solution adopted to connect the movement of goods with tax compliance, facilitating traceability, transparency, and logistics efficiency.

The e-Way Bill (or "Electronic Way Bill") is a mandatory electronic document that must be generated when transporting goods within India (state to state or within the same state) under certain conditions. Its function is to record information about the transfer of goods before they are moved, so that authorities can verify tax compliance and monitor the actual transit of goods.

Your obligation arises when the value of the consignment (or goods transported) exceeds a specific threshold (currently ₹ 50,000) for many movements. The document must be generated before the goods begin to move.

As of March 1, 2024, a new feature was introduced: e-Way Bills must include data related to the electronic invoice (for B2B transactions and exports).

e-Way Bill workflow

These are the steps to follow in order to comply with the e-Way Bill requirements:

  1. Portal log in/registration: The individual (sender, recipient, or shipper) must be registered with the GST portal and the e-Way Bill system
  2. Fill in Part A data, including:
      a) Sender and recipient indentification (GSTIN)
      b) Place of origin and destination (locality, pin code)
      c) Document number and date (invoice, delivery note, etc.)
      d) Value of the goods
      e) HSN code (tariff code)
      f) Reason for transport (sale, return, transfer, etc.)
  3. Fill in Part B data: When transport and logistics are already involved, vehicle data, shipment number, shipper data, etc. are added.
  4. E-Way Bill Number (EBN) generation and assignment: Once validated, the system assigns an identifier (EBN) that will be visible to the sender, recipient and shipper.
  5. Verification and compliance in transit: Along the way, vehicles may be stopped by authorities, who can verify that the e-Way Bill is valid and corresponds to the actual movement of goods.
  6. Cancellations, extensions, or modifications: If transportation is delayed or changes occur, the e-Way Bill may be extended under specific conditions, or in some cases canceled (usually within a specific time frame).

Get ahead of new mandates

Check the global compliance calendar and discover when e-invoicing and e-reporting regulations come into effect in each country.
Go to calendar

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