E-Invoicing in India: Everything You Need to Know (2026 Update)

E-invoicing confuses a lot of people. Is it a new type of invoice? Do I need special software? Will the government see all my invoices? Let's clear it all up.

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What e-invoicing actually is: It's NOT a different invoice format. It's a system where you register each B2B invoice with the government (NIC portal) and get back a unique number (IRN) + QR code. Your invoice looks the same to your customer.

Who needs to do this?

Annual TurnoverE-Invoicing Required?Since
Above ₹5 CrYes, mandatoryAug 2023
₹5-10 CrYes, mandatoryAug 2023
₹10-20 CrYes, mandatoryOct 2022
Below ₹5 CrNot yet (expected soon)
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Penalty for non-compliance: The invoice without IRN is treated as invalid. You can't claim ITC on it, and your buyer can't either. Plus a ₹25,000 penalty per invoice.

How it works (the flow)

1

You create an invoice (in your software)

Normal invoice with all the usual fields — buyer GSTIN, items, HSN, tax amounts, etc.

2

Your software sends it to NIC IRP

The Invoice Registration Portal validates the data and generates an IRN (Invoice Reference Number) — a unique 64-character hash.

3

NIC returns IRN + signed QR code

This QR code contains key invoice details and is digitally signed by NIC. It proves the invoice is registered.

4

You print/share the invoice with QR

Your invoice now has the IRN number and QR code. That's it. The invoice itself looks almost the same as before.

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Key detail: E-invoicing only applies to B2B invoices (sales to other registered dealers). B2C invoices, exports, and SEZ supplies have different rules.

How Sally handles this

In Sally, e-invoicing is one click:

  • Create your invoice as usual
  • Click “Generate E-Invoice”
  • Sally calls NIC IRP directly (no portal visit needed)
  • IRN + QR code auto-saved on the invoice
  • PDF includes the QR code automatically

You can also cancel an e-invoice within 24 hours if you made a mistake. After 24 hours, you'll need to issue a credit note instead.

Quick FAQ

Do I need to visit the e-invoice portal?

No. Sally connects directly via API. You never need to log into the NIC portal manually.

What about e-way bills?

If your invoice requires an e-way bill (goods > ₹50K, inter-state), Sally can generate that too in the same flow.

Does this auto-fill my GSTR-1?

Yes. E-invoiced B2B data is auto-populated in GSTR-1 by the GST portal. Less work for you.

Ready to try this yourself?

Sally ERP handles all of this — and more. Free trial, no credit card.

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