E-invoicing: who must follow it
E-invoicing does not mean making your bill on a government website. You still prepare the invoice in Tally, Busy, your ERP or billing software. The invoice data is then reported to an Invoice Registration Portal (IRP), which validates it and returns a unique Invoice Reference Number (IRN) and a digitally signed QR code. Only then is the B2B invoice valid.
The current position is summarised below.
| Point | Position |
|---|---|
| Turnover limit | Aggregate turnover above Rs 5 crore in any financial year from 2017-18 |
| Documents covered | B2B tax invoices, export invoices, credit notes and debit notes, including those to SEZs |
| Not covered | B2C invoices (separate dynamic QR code rules apply to very large taxpayers), bills of supply, delivery challans |
| Excluded entities | SEZ units (not developers), insurance companies, banks and financial institutions including NBFCs, goods transport agencies, passenger transport services, admission to multiplex cinema, and notified government departments and local authorities |
| Time limit | Taxpayers with AATO of Rs 10 crore or more must report documents within 30 days of the document date (from 1 April 2025) |
| Cancellation | Within 24 hours on the IRP; after that, only by credit or debit note |
Many growing businesses in Gurugram cross Rs 5 crore without noticing that the obligation started from the next year. Turnover is counted for the whole PAN across all states, not just your Haryana registration. We check your past returns and tell you the exact date from which IRN became compulsory.
IRN, QR code and the IRP portals
The IRN is a unique 64-character reference based on your GSTIN, financial year, document type and document number. The same invoice number cannot be reported twice in the same year, so duplicate numbering in your software causes rejections.
The QR code carries key details such as supplier and buyer GSTIN, invoice number and date, value, number of line items, main HSN code and the IRN. It must be printed on the invoice.
You can report through the NIC portals or through any of the private IRPs notified by GSTN. The data flows automatically:
- To GSTR-1: e-invoice details are auto-populated in the relevant tables of your GSTR-1.
- To the buyer: the details reach the buyer’s GSTR-2B after you file GSTR-1.
- To the e-way bill: if transport details are given, Part A of the e-way bill can be generated from the IRN itself.
Auto-population does not remove the need to check. GSTR-1 must still be reviewed before filing, especially for credit notes, amendments and B2C sales that do not pass through the IRP.
E-way bill rules under Rule 138
An e-way bill is an electronic document for the movement of goods. It is generated on the e-way bill portal or through an API, and the transporter must carry its number or a copy during the journey.
| Point | Position |
|---|---|
| When required | Movement of goods of consignment value above Rs 50,000, generally, whether in relation to a supply, a return or any other reason |
| Below Rs 50,000 also | Inter-state movement of goods to a job worker, and inter-state movement of handicraft goods by persons exempt from registration |
| Part A | GSTIN of supplier and recipient, place of delivery, document number and date, value, HSN code, reason for transport |
| Part B | Vehicle number or transport document details |
| Part B exemption | Movement within the state up to 50 km between the consignor’s place and the transporter’s place for further transport |
| Validity, normal cargo | One day for every 200 km or part of it |
| Validity, over-dimensional cargo | One day for every 20 km or part of it |
| Extension | Within eight hours before or after expiry, if the goods cannot reach in time |
| Cancellation | Within 24 hours, if the goods have not been verified in transit |
Consignment value includes GST but excludes the value of exempt goods supplied on the same invoice. Several goods are exempt from e-way bills under the annexure to Rule 138, and movement by non-motorised conveyance and certain other cases are also excluded.
The 2025 changes: time limits and two-factor login
From 1 January 2025, two limits apply on the e-way bill portal:
- An e-way bill can be generated only for documents dated within the last 180 days.
- An e-way bill can be extended only up to 360 days from its original generation date.
Multi-factor authentication (login with password plus OTP) was made compulsory in phases during 2025 and now applies to all users of the e-way bill and e-invoice portals. Keep the registered mobile number updated and make sure staff who generate bills have their own sub-user logins. A shared login with one person’s mobile number usually stops work the day that person is away.
Penalties when goods move without a proper e-way bill
Officers on the highways around Gurugram, including the Delhi border, NH-48 and the KMP Expressway, regularly verify vehicles. If goods are found without a valid e-way bill, or with wrong details, they can be detained under Section 129 of the CGST Act.
| Situation | Penalty for release |
|---|---|
| Owner comes forward, taxable goods | 200% of the tax payable on the goods |
| Owner comes forward, exempt goods | 2% of the value of goods or Rs 25,000, whichever is less |
| Owner does not come forward, taxable goods | 50% of the value of goods or 200% of the tax payable, whichever is higher |
| Owner does not come forward, exempt goods | 5% of the value of goods or Rs 25,000, whichever is less |
Separately, a general penalty can apply for transporting goods without the required documents. Courts have held that purely technical errors, such as a minor mistake in the vehicle number with no intention to evade tax, should not attract the full penalty. Each case depends on the facts and the documents produced, so the reply to the detention notice must be prepared carefully. Where an order is passed, we can take it to appeal through our appeal and case management service.
Tally and ERP integration
Most businesses we work with in Gurugram use TallyPrime, Busy or an ERP. Direct integration saves time and reduces errors.
- API credentials: we create the API user on the e-invoice and e-way bill portals and link it to your software.
- Masters: party GSTIN, state, PIN code, HSN codes and units must be correct, or the IRP rejects the invoice.
- Invoice numbering: a clean series for each financial year, with no duplicates across branches.
- Print format: IRN, acknowledgement number and QR code must appear on the printed invoice.
- Credit notes: sales returns and discounts must also be reported where e-invoicing applies.
Where integration is not possible, we can generate IRNs and e-way bills for you through bulk upload, usually on the same working day.
How KSV helps
- Applicability review. We check your turnover history and tell you whether e-invoicing applies and from when.
- Setup. Portal registration, sub-users, multi-factor login and software configuration.
- Day-to-day support. Generation, extension, Part B updates and cancellations on WhatsApp requests.
- Monthly matching. E-invoices and e-way bills are matched with GSTR-1 and your books as part of our GST return filing service.
- Detention support. Drafting replies, attending the proper officer and, where needed, a reply to any notice through our GST notice reply service.
See our pricing page for package details, or contact us with your GSTIN and the software you use.
Frequently asked questions
Is e-invoicing compulsory for my business?
E-invoicing applies if your aggregate turnover exceeded Rs 5 crore in any financial year from 2017-18 onwards. Once you cross the limit in any one year, it continues to apply even if turnover later falls. It covers B2B invoices, exports, and credit and debit notes. Certain sectors, such as banks, insurers, goods transport agencies and SEZ units, are excluded.
What is the 30-day time limit for e-invoices?
From 1 April 2025, taxpayers with aggregate annual turnover of Rs 10 crore or more cannot report an invoice, credit note or debit note to the IRP if its date is more than 30 days old on the date of reporting. The portal simply rejects such documents, so the IRN must be generated promptly.
Can I cancel an e-invoice?
An IRN can be cancelled on the IRP within 24 hours of generation. After that, it cannot be cancelled on the portal. The correction must be made through a credit note or debit note, which is reported in GSTR-1 in the normal way.
What happens if I issue a B2B invoice without IRN when e-invoicing applies?
An invoice that should have been reported to the IRP but was not is not treated as a valid tax invoice. Your buyer may lose input tax credit, and penalty provisions for issuing an improper invoice can apply. It can also create trouble at checkpoints if the goods are moving.
When is an e-way bill required?
Generally, when goods of consignment value above Rs 50,000 are moved, whether inter-state or within the state. For some cases, such as inter-state movement to a job worker and certain handicraft goods, an e-way bill is needed even below that value. Some goods and modes of movement are exempt under Rule 138.
How long is an e-way bill valid?
For normal cargo, one day for every 200 km or part of it. For over-dimensional cargo, one day for every 20 km. The day ends at midnight of the following day, so timing matters. Validity can be extended within eight hours before or after expiry.
Can I generate an e-way bill for an old invoice?
Only if the invoice or other document is not more than 180 days old. This limit applies from 1 January 2025. An e-way bill can also be extended only up to 360 days from its original generation date.
Truck Gurgaon se nikal gaya, e-way bill galat ban gaya. Ab kya karein?
If the e-way bill was generated less than 24 hours ago and the goods have not been verified on the way, cancel it and generate a fresh one. If the error is only in the vehicle number, update Part B. Call us immediately if the vehicle has already been stopped, because the reply to the officer must be filed quickly.
Does Tally generate e-invoices and e-way bills directly?
TallyPrime and most ERPs can connect to the IRP and the e-way bill portal through API credentials. Once set up, the IRN, QR code and e-way bill number can be generated from the voucher itself. We help configure the masters, API user and invoice format so the details match.