GST and input tax credit
What Is E-Invoice and IRN? GST Process Explained
Direct answer
A GST e-invoice is not a new invoice created by a government portal; it is a supplier’s prescribed invoice data registered with an Invoice Registration Portal. Successful validation produces an Invoice Reference Number, or IRN, and a signed QR code. Notified taxpayers must apply the workflow to covered documents and control reporting, cancellation and return-data follow-through.
Acronym: IRN. Also known as: GST e-invoice, Invoice Reference Number.
Key takeaways
- The supplier creates the invoice in its own system and reports the prescribed schema to an IRP.
- An IRN uniquely identifies the registered document, while the signed QR code supports verification.
- The current mandate threshold and portal reporting limit are separate tests.
- Cancel or correct documents through the prescribed lifecycle; never edit a signed IRP payload in place.
Who must use GST e-invoicing
Notification No. 10/2023-Central Tax changed the turnover figure in the e-invoice notification from ₹10 crore to ₹5 crore with effect from 1 August 2023. Applicability is tested using aggregate turnover under the notified framework, including turnover in the relevant preceding financial years, and applies to the notified class and covered document types. The base notification also contains exclusions, so an enablement flag or a single GSTIN’s current-year turnover is not a complete legal test.
For operational policy, preserve the applicability calculation by PAN, financial year and GST registration. Document why an excluded entity or supply is outside the mandate. Reassess after acquisitions, registration changes or amended turnover data.
A separate current portal control applies to reporting age. The official IRP advisory states that from 1 April 2025 taxpayers with annual aggregate turnover of ₹10 crore or more must report covered e-invoices within 30 days from the invoice date; older documents are rejected. This limit does not redefine the ₹5 crore mandate threshold. Systems should therefore store two flags: whether e-invoicing applies and whether the 30-day portal restriction applies.
From accounting invoice to registered e-invoice
- Create the source invoice. The ERP assigns a unique invoice number and validates GSTIN, document date, supply type, place of supply, values, tax and item data.
- Build the prescribed JSON. Map the source fields to the current e-invoice schema without changing the commercial document’s identity.
- Submit to an IRP. Use an authorised portal, API or service provider and retain request identifiers and timestamps.
- Receive validation. On success, the IRP returns the IRN, digitally signed e-invoice data and signed QR code. On failure, correct the source data and resubmit; do not invent an IRN locally.
- Issue the invoice. Render the required invoice particulars with IRN and QR code and deliver it to the recipient.
- Complete downstream processing. Verify auto-populated GSTR-1 information and, where appropriate, generate or connect the e-way bill.
- Archive evidence. Store source invoice, submitted JSON, response, signed payload, QR representation and later status events.
The IRP validates and registers data; it does not replace the supplier’s accounting, tax determination or approval controls.
IRN, signed QR code and invoice data
| Element | Purpose | Control |
|---|---|---|
| Supplier invoice number | Commercial document identity assigned by the supplier’s series. | Keep unique for the financial year and consistent across ERP, IRP and returns. |
| IRN | Unique reference returned after IRP registration; GSTN materials describe it as a 64-character hash. | Never reuse an IRN or treat a failed response as registration. |
| Signed QR code | Embeds key invoice information and the IRN for electronic verification. | Render the IRP-provided code legibly and test scanning in the final invoice output. |
| Signed JSON | Machine-readable registered payload carrying the IRP signature. | Archive unchanged with the response and status. |
| GSTR-1 auto-population | Moves reported e-invoice data toward the outward-supply statement. | Review before filing; editing can clear source, IRN and IRN-date indicators. |
CBIC Circular 160 clarifies that when an e-invoice is generated under rule 48(4), the QR code containing the IRN can be produced electronically for officer verification in lieu of carrying a physical invoice copy.
Cancellation and amendment considerations
| Situation | Correct response | Avoid |
|---|---|---|
| IRN registered for a transaction that will not proceed | Use the IRP cancellation facility within its permitted window and record the reason. | Deleting only the ERP invoice while leaving an active IRN. |
| Material error discovered after IRP registration | Assess cancellation and fresh reporting if still permitted; otherwise use the legally appropriate document and return-amendment process. | Editing the signed JSON or printing different values under the same IRN. |
| IRN cancellation | Confirm downstream deletion or status in GSTR-1 data and any linked e-way bill process. | Assuming every connected system updates without monitoring. |
| GSTR-1 auto-populated detail edited | Regenerate the return summary and retain why the change was required. | Ignoring that source, IRN and IRN-date fields can reset to blank. |
The GST Portal advises taxpayers to review auto-populated e-invoice details before GSTR-1 filing. A cancellation register should reconcile ERP status, IRP status, customer communication, e-way bill and return status.
Document lifecycle and ownership
Before issue, sales operations owns master data and commercial approval; tax owns applicability, supply classification and schema rules; technology owns reliable IRP submission and response handling. After registration, billing owns delivery of the correct rendered invoice, logistics owns any linked e-way bill, and tax owns GSTR-1 review.
Design for idempotency. A timeout after submission does not prove failure: query the IRP using the document identity before retrying, or duplicate attempts may create confusing operational states. Store error code, message, attempt time and final resolution. Reconcile sequential invoice numbers to successful IRNs, cancelled IRNs and legitimately out-of-scope documents.
Recipients should validate that IRN and QR code belong to the supplier and invoice they received, but an authentic e-invoice does not alone establish ITC. Match it to supply receipt, purchase records, GSTR-2B and section 16 or section 17 checks. Treat e-invoice integrity and ITC eligibility as connected but distinct controls.
Business continuity matters because a portal or integration interruption can stop covered invoice issuance. Maintain approved access to more than one authorised IRP where appropriate, queue unsent documents without changing their identity, and reconcile the queue after service restoration. Never bypass registration by emailing an ordinary PDF and treating later reporting as an invisible back-office correction. The customer, logistics and return teams must all receive the final registered status.
E-invoice operational checklist
- Reconfirm PAN-level mandate applicability and entity exclusions at least annually and after structural changes.
- Maintain the separate ₹10 crore, 30-day reporting-control flag for documents dated on or after the official effective date.
- Validate GSTIN status, invoice series, document date, supply type, place of supply, HSN or SAC, taxable value and tax before submission.
- Block customer delivery until a covered document has a successful IRN and signed QR code.
- Query status after ambiguous timeouts before retrying; monitor every failed submission to closure.
- Scan the final QR output in representative PDF and print formats.
- Reconcile ERP invoices to active and cancelled IRNs daily, with explicit out-of-scope reasons.
- Review e-invoice auto-population in GSTR-1 and regenerate the summary after authorised corrections.
- Coordinate cancellations with credit-note, customer, e-way-bill and return teams.
- Archive original request, response and signed payload under controlled retention.
A useful exception dashboard separates schema failure, master-data error, business validation, portal availability, aged unreported document and downstream mismatch. This directs the issue to the team that can actually resolve it.
Frequently asked questions
Does the IRP create the supplier’s invoice?
No. The supplier creates the invoice in its own system and reports prescribed data. The IRP validates and registers that data, returning an IRN and signed QR code.
What is the current e-invoice turnover threshold?
Notification No. 10/2023 substituted ₹5 crore for ₹10 crore with effect from 1 August 2023 in the mandate notification. Apply the full notification, including its turnover framework and exclusions.
What is an IRN?
The Invoice Reference Number is the unique reference generated on successful registration of a covered document with an IRP. It connects the registered payload, signed QR code and downstream records.
Can a registered e-invoice be edited?
The signed IRP payload is not edited in place. Use permitted cancellation and fresh reporting or the appropriate GST document and return-amendment process, depending on timing and facts.
Is there a time restriction for reporting old e-invoices?
Yes for the specified group. The official IRP advisory says taxpayers with AATO of ₹10 crore or more face a 30-day reporting limit from 1 April 2025.
Does an e-invoice automatically prove recipient ITC eligibility?
No. It supports authenticity and reporting controls, but the recipient must still verify receipt, business purpose, GSTR-2B and all section 16 and section 17 requirements.
What should a business retain for each IRN?
Retain the approved source invoice, submitted JSON, IRP request and response, signed payload, QR output, status history and any cancellation or downstream return correction. Together they explain both document identity and lifecycle.
Sources and further reading
- Central Board of Indirect Taxes and Customs: Notification No. 10/2023-Central Tax on e-invoice applicabilityVerified Jul 25, 2026
- Goods and Services Tax Network authorised IRP: E-invoicing enablement status update for ₹5 crore applicabilityVerified Jul 25, 2026
- Goods and Services Tax Network authorised IRP: Revised time limit for e-invoice reporting for AATO of ₹10 crore and aboveVerified Jul 25, 2026
- Central Board of Indirect Taxes and Customs: Circular No. 160/16/2021-GST on electronic QR-code verificationVerified Jul 25, 2026
- Goods and Services Tax Network: GST Portal GSTR-1 manual: e-invoice editing and downloadVerified Jul 25, 2026
- India Code: CGST Act section 16: eligibility and conditions for ITCVerified Jul 25, 2026
- India Code: CGST Act section 17: apportionment and blocked creditsVerified Jul 25, 2026
Educational disclaimer: This material is general information, not legal, tax, or accounting advice. Check current official guidance and your facts with a qualified professional.
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