E-Invoicing & E-Way Bill Compliance

What are e-invoicing and e-way bills?

E-invoicing means reporting business-to-business invoices to the government's Invoice Registration Portal, which validates them and returns a unique Invoice Reference Number (IRN) and QR code. The invoice isn't valid without it. It applies to businesses above a turnover threshold.

An e-way bill is an electronic document generated before goods above a certain value are moved, whether for sale, transfer, or other reasons. It records what's being moved, where, and by whom, and must accompany the goods.

The key terms

The main rules:

E-invoicing threshold

Businesses whose aggregate turnover exceeded ₹5 crore in any year from 2017-18 must generate e-invoices for B2B supplies and exports.

IRN and QR code

The Invoice Reference Number and QR code returned by the portal, which must appear on the invoice.

30-day reporting limit

Businesses with turnover of ₹10 crore or more must report invoices to the portal within 30 days of the invoice date.

Exemptions

Certain sectors, like banks, insurance companies, goods transport agencies, and passenger transport, are exempt from e-invoicing.

E-way bill threshold

Generally required for movement of goods worth more than ₹50,000 per consignment, with states setting their own limits for intra-state movement.

Part A and Part B

Part A has invoice and consignment details; Part B has vehicle or transport details.

Validity

An e-way bill is valid for a period based on distance, and can be extended in specified cases.

Why it matters

Both systems carry real consequences if missed:

Invalid invoices

A B2B invoice without an IRN, where e-invoicing applies, isn't a valid invoice — and the customer can't claim credit.

Customers push back

Business customers increasingly refuse invoices without an IRN.

Goods detained

Goods moved without a valid e-way bill can be detained, with tax and penalty demanded.

Automatic data flow

E-invoice data flows into GSTR-1, reducing errors when set up correctly.

Data matching

E-invoices and e-way bills are compared with returns, so gaps are visible.

Reporting deadlines

Larger businesses can't report invoices to the portal after 30 days.

Blocked e-way bills

E-way bill generation can be blocked for businesses that miss returns.

Who is this for?

Once e-invoicing applies, it continues even if turnover later falls below the threshold.

E-invoice vs. e-way bill

Related but separate:

What we'll need from you

Turnover history

Aggregate turnover for each year since 2017-18, to confirm applicability.

Accounting or ERP system

Details of the system you invoice from, for integration.

Invoice formats

Current invoice formats, to add IRN and QR code.

Transport details

Transporters, vehicles, and routes, for e-way bills.

Portal credentials

Access to the e-invoice and e-way bill portals, and API credentials if integrating.

Warehouses and branches

All locations goods move between.

Setup fees depend on your system and volumes. Many accounting packages have built-in integration.

How we set it up

Getting e-invoicing and e-way bills running:

1. 1

   Confirm applicability

   We confirm whether e-invoicing applies, and from when.

2. 2

   Choose the method

   Direct portal entry, your software's built-in integration, or an API through a provider.

3. 3

   Configure

   Masters, HSN codes, and invoice formats are set up to meet the schema.

4. 4

   Test

   Sample invoices and e-way bills are generated and checked.

5. 5

   Go live

   Live invoicing starts, with the IRN and QR code on every B2B invoice.

6. 6

   Reconcile

   E-invoice data is matched with GSTR-1 and the books.

Staying compliant

Day-to-day points:

Generate before issuing

Obtain the IRN before sending the invoice to the customer.

Cancel within the window

An IRN can be cancelled only within a short window after generation; later corrections need a credit note.

Report within 30 days

Businesses at ₹10 crore and above must report invoices within 30 days.

Carry e-way bills

Make sure drivers carry the e-way bill, and update Part B when vehicles change.

Extend when needed

Extend e-way bill validity before it expires if goods are delayed.

Reconcile monthly

Match e-invoices and e-way bills with GSTR-1 and books.

Benefits and responsibilities