What is GST E-Invoicing?
GST e-invoicing is a system where B2B invoices are reported to the government's Invoice Registration Portal (IRP) in real-time. The IRP validates the invoice and returns an Invoice Reference Number (IRN) and a digitally signed QR code. These must appear on every B2B invoice for eligible businesses.
Who Needs E-Invoicing in India (2026)?
As of 2026, e-invoicing is mandatory for businesses with aggregate annual turnover above ₹5 crore. This includes all B2B transactions. B2C transactions (selling to end consumers) are exempt from e-invoicing but may require a dynamic QR code on invoices for businesses above ₹500 crore turnover.
How to Generate E-Invoices
To generate an e-invoice: (1) Create the invoice in your billing software, (2) The software sends the invoice data to the IRP via API, (3) The IRP validates and registers it, returning an IRN and signed QR code, (4) The signed invoice with IRN and QR code is printed and shared with the buyer. RetailIQ handles this entire process automatically.
E-Invoicing Penalties for Non-Compliance
Failure to generate e-invoices for eligible transactions attracts a penalty of ₹10,000 per invoice (up to 100% of tax amount). Input Tax Credit (ITC) cannot be claimed by the buyer if the supplier has not generated a proper e-invoice. This makes e-invoice compliance critical for your customers too.
Frequently Asked Questions
Is e-invoicing mandatory for my business in India?
E-invoicing is mandatory for businesses with aggregate annual turnover above ₹5 crore for all B2B transactions. If your turnover is below ₹5 crore, e-invoicing is optional but recommended for large B2B buyers who need ITC.
Does RetailIQ support GST e-invoicing?
Yes, RetailIQ supports e-invoicing integration for eligible businesses. The system automatically sends invoice data to the IRP, retrieves the IRN and QR code, and prints them on the invoice — fully automating compliance.
What happens if I don't generate e-invoices when required?
Non-compliance attracts a penalty of ₹10,000 per invoice (or 100% of tax due, whichever is higher). Additionally, your buyers cannot claim Input Tax Credit on purchases from you, which may cause them to switch to compliant suppliers.
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