E-Invoicing
E-invoicing is a GST system where invoices above a certain turnover threshold must be electronically reported to the government and assigned a unique Invoice Reference Number (IRN) before being considered valid.
Under India’s e-invoicing mandate, businesses above a specified aggregate turnover threshold (set by the government and periodically lowered to cover more businesses) must report their B2B invoices to the Invoice Registration Portal (IRP) in real time.
Once reported, the IRP validates the invoice, assigns it a unique Invoice Reference Number (IRN), and returns a signed QR code that must appear on the invoice sent to the buyer.
Most individual freelancers currently fall below the e-invoicing turnover threshold, but growing agencies and businesses should track their turnover against the current threshold, since it has been lowered several times.
Written by the InvoicePilot Team.