E-invoicing in India (GST IRN)
What is e-invoicing in India? In India, B2B invoices above the limit must be reported to the GST portal, which gives each one a unique Invoice Reference Number (IRN). The invoice is valid only once it has that number.
In plain words
E-invoicing is not a PDF invoice sent by email. Your billing software sends the invoice details to the government's Invoice Registration Portal (IRP). The portal checks them and sends back a 64-character Invoice Reference Number (IRN), a digital signature and a QR code.
Only then is the invoice valid. The same details later flow into your GST return and can be used for the e-Way bill. It applies to B2B invoices (and some others such as exports) for businesses above a turnover limit. That limit has been lowered in steps over the years, so check the current figure.
Sharma Traders is above the limit. It raises an invoice of ₹2,36,000 to a buyer in Bengaluru: ₹2,00,000 plus ₹36,000 IGST at 18%.
The software sends the invoice to the portal. The portal returns the IRN and QR code, and these are printed on the invoice. If the buyer's GSTIN had been wrong, the portal would reject it, and the invoice would not be valid until corrected and resubmitted.
Why it matters
- Validity: an invoice without an IRN, where one is required, is not treated as a valid invoice.
- Your customer's credit: a buyer may not be able to claim input tax credit on an invoice that is not valid.
- Month-end: rejected invoices pile up if nobody reads the error messages, and there is a time limit for reporting.
Want to see an invoice go to the portal and a rejection get explained? We can show both on a test setup.
How Kinnow handles it
When you approve an invoice in Sell, Kinnow sends it to the portal through Comply and keeps the IRN, the QR code and the portal's signed copy with the invoice. Each GSTIN has its own rate limit, and a retry re-sends the same payload.
If the portal rejects an invoice, Kinnow reads the error, sorts it (for example duplicate number, party data, tax mismatch or field format), says whether a retry can work and proposes the next step. It only fixes mechanical things such as stray spaces, and only when a person clicks apply. It never rewrites party data, and stops after five tries.
Limit: the connection to the live portal is switched on for each company after testing in the portal's test setup. Your CA confirms whether you are above the turnover limit.
Tell us your monthly invoice volume and we will show how rejections would reach your team.
Questions
What is e-invoicing in India?
In India, B2B invoices above the limit must be reported to the GST portal, which gives each one a unique Invoice Reference Number (IRN). The invoice is valid only once it has that number.
Is e-invoicing the same as filing my GST return?
No. E-invoicing reports each invoice to the portal as you raise it. The GST return is filed monthly or quarterly. Invoices reported through the portal feed your sales return, but you still file the return.
What should I do if the portal rejects an invoice?
Read the error, correct the data (often a wrong GSTIN, a duplicate invoice number or a tax mismatch) and send it again. Until it is accepted, treat the invoice as not issued. If you are unsure, ask your CA before you cancel or re-issue.