IRN generation & compliance

Category: GST Services. From ₹2,499. Typical timeline: 3–5 days.

Overview

E-invoicing under GST requires notified businesses to generate a unique Invoice Reference Number (IRN) and QR code for every B2B invoice through the government's Invoice Registration Portal (IRP) before it is considered valid for GST purposes. Setup involves configuring billing software or ERP to integrate with the IRP so invoices are authenticated in real time and auto-populate into GSTR-1.

Who needs it

• Businesses crossing the ₹5 crore turnover threshold needing mandatory IRN generation
• Companies using Tally, Zoho, SAP or custom billing software requiring IRP/API integration
• Businesses wanting auto-population of GSTR-1 to reduce manual return preparation effort
• Vendors of large corporates that require e-invoice compliant purchase invoices for ITC claims

Eligibility

• Mandatory for businesses whose aggregate turnover in any preceding financial year (from 2017-18 onwards) exceeds the notified threshold (currently ₹5 crore)
• Applies to B2B tax invoices, credit notes and debit notes
• Certain sectors like SEZ units, insurers, banks, NBFCs and passenger transport services are exempt regardless of turnover
• Businesses below the threshold can voluntarily opt in for e-invoicing

Documents required

• GSTIN and turnover details to confirm applicability
• Billing software/ERP details for API or GSP integration
• Sample invoice formats for mapping to e-invoice schema
• Digital signature or API credentials for authentication with the IRP

Process

1. Applicability check — Confirm whether the turnover threshold triggers mandatory e-invoicing.
2. System integration — Configure the billing software or ERP to connect with the IRP via direct API, GSP, or through the government's e-invoice portal utility.
3. Testing — Generate test invoices in the sandbox environment to verify IRN and QR code generation.
4. Go-live — Switch to production mode so every B2B invoice generates a live IRN before being issued to customers.

Government fees

• E-invoice generation on IRP: Nil — no government fee for IRN/QR code generation
• GSP/API integration charges (if using a third-party GSP): As per the chosen GST Suvidha Provider's commercial terms

Professional fee

Kanoons charges ₹2,499 for e-invoicing applicability assessment, software configuration guidance and go-live testing support.

Timeline

Setup is typically completed in 3–5 working days depending on the billing software's existing e-invoicing capability and IT team availability for integration.

Deliverables

• Applicability assessment report
• Configured e-invoicing workflow (software/ERP to IRP)
• Test IRN and QR code generation confirmation
• Staff training note on the e-invoicing workflow

Frequently asked questions

Does e-invoicing apply to B2C invoices?

No, e-invoicing under the current framework applies only to B2B invoices, credit notes and debit notes, not B2C retail invoices.

What happens if an invoice is issued without an IRN when e-invoicing is mandatory?

Such an invoice is treated as invalid for GST purposes, and the recipient may face difficulty claiming input tax credit on it.

Is a separate e-invoice format used?

No, e-invoicing does not create a new invoice format; instead, invoice data generated in the existing accounting software is reported to the IRP for IRN generation.

Common mistakes

• Not checking turnover across all preceding financial years before assuming e-invoicing is inapplicable
• Issuing invoices to customers before the IRN is generated, causing compliance gaps
• Failing to cancel an e-invoice within the 24-hour window when an invoice needs to be voided
• Not updating billing software when e-invoicing threshold changes are notified

Penalties for non-compliance

• Invoices issued without a valid IRN, when e-invoicing is mandatory, are considered invalid and can attract a penalty of ₹10,000 per invoice under Section 122 of the CGST Act
• Recipients may be denied input tax credit on non-compliant invoices, creating downstream commercial disputes
• Repeated non-compliance can invite scrutiny and notices from the GST department

Legal references

• Central Goods and Services Tax Rules, 2017, Rule 48(4) — mandatory e-invoicing for notified persons
• Notification No. 13/2020 – Central Tax (as amended) — turnover threshold for e-invoicing applicability
• Circular clarifications by GSTN/CBIC — IRN generation and QR code requirements