E-Invoicing Framework in India
Electronic Invoicing (E-Invoicing) mandates registered businesses exceeding specific turnover thresholds to upload B2B invoices to the Invoice Registration Portal (IRP) for authentication and generation of an Invoice Reference Number (IRN) and signed QR code.
Turnover Thresholds & Applicability
- Mandatory for all registered businesses whose aggregate turnover exceeded ₹5 Crore in any preceding financial year from 2017-18 onwards.
- Applies to B2B invoices, export invoices, B2B credit notes, and debit notes.
- Exempted entities: Special Economic Zone (SEZ) units, insurance, banking, Goods Transport Agencies (GTA), and passenger transport services.
E-Way Bill Integration
An E-Way Bill is mandatory for the movement of goods valued at over ₹50,000 (consignment value). When generating an e-Invoice on the IRP portal with transport details (Part-B), the E-Way bill is generated automatically alongside the IRN.
Penalties for Non-Compliance
- Non-Issuance of E-Invoice: 100% of tax due or ₹10,000, whichever is higher per invoice.
- Incorrect E-Invoice: Penalty of ₹25,000 per violation under Section 122.
- An invoice without a valid IRN is deemed invalid, and the recipient cannot claim ITC.