Vidhu Duggal & Co....
Title: GST E-Invoicing: Practical Implementation Guide for Indian Businesses

23 Sep, 2023

By Vidhu


Title: GST E-Invoicing: Practical Implementation Guide for Indian Businesses


In the ever-evolving landscape of taxation in India, the introduction of GST (Goods and Services Tax) has been a significant step towards streamlining the tax system. One of the key advancements in this journey is GST E-Invoicing. This game-changing initiative aims to bring transparency, reduce tax evasion, and simplify compliance for businesses. In this blog, we will provide you with a practical implementation guide for GST E-Invoicing, helping you navigate this crucial aspect of GST seamlessly.

Understanding GST E-Invoicing

GST E-Invoicing is a system where businesses are required to generate invoices in a standardized electronic format and submit them to the GSTN (Goods and Services Tax Network). These e-invoices are then authenticated by the GSTN, and a unique Invoice Reference Number (IRN) is generated for each invoice. The IRN is essential for the invoice to be considered valid under GST.

Practical Steps for Implementing GST E-Invoicing

  1. Assessment of Applicability:
  • Determine whether your business falls under the threshold for GST E-Invoicing, which is typically based on turnover. Currently applicable to taxpayers having an aggregate turnover of more than Rs 5 crore, Notification number: 10/2023-Central tax
  • Verify if your industry or sector is mandatorily required to comply with GST E-Invoicing.


  1. Upgrade Your Accounting Software:
  • Ensure that your accounting software is GST E-Invoicing compatible. Most major accounting software providers in India have updated their systems to support E-Invoicing.
  1. Generate E-Invoices:
  • Create invoices in the prescribed format, including all mandatory details such as:-
    • GSTIN (Goods and Services Tax Identification Number)
    • Invoice Number and Date
    • Supplier and Recipient Details
    • Item Details
    • Taxable Value and Tax Amount
    • HSN/SAC Code
    • Place of Supply
    • Payment and Delivery Terms
    • Shipping and Billing Address
    • Discounts and Other Charges
    • Signature and QR Code
  • Validate the invoices to ensure compliance with GST E-Invoicing rules.
  1. Generate IRN and QR Code:
  • Once your invoice is ready, you need to generate an IRN and QR code using the GSTN portal or through your accounting software.
  1. Report to the GSTN:
  • Upload the e-invoice data to the GSTN portal for validation and generation of IRN.
  • Ensure that the IRN is mentioned on your invoice.
  1. Real-Time Reporting:
  • Be prepared for real-time reporting, as the invoice data is instantly shared with the GSTN.
  1. Integration with ERP Systems:
  • For large enterprises, consider integrating your ERP systems with the GSTN portal for seamless E-Invoicing.
  1. Compliance and Record Keeping:
  • Maintain proper records of all e-invoices, as these will be crucial during audits.
  • Regularly reconcile your e-invoice data with your accounting records.

Benefits of GST E-Invoicing

  1. Reduced Errors: E-Invoicing reduces manual data entry errors, ensuring accurate and error-free invoices.


  1. Improved Compliance: It facilitates real-time validation of invoices, making it easier to comply with GST regulations.


  1. Efficiency: Automation of invoicing processes leads to greater efficiency in your business operations.


  1. Transparency: The system promotes transparency in transactions, reducing the scope for tax evasion.


  1. Simplified Audits: Access to electronic records simplifies the audit process, saving time and resources.