E-Invoicing Mandatory for ₹1 Crore Turnover from April 2025: 30-Day Setup Guide
Step-by-step implementation guide for newly covered businesses, IRP registration, software selection, and penalties for non-compliance
Written by
CA Ashama Rajawat
From
What is E-Invoicing?
E-invoicing is a system where every B2B invoice is electronically authenticated by GSTN before it's sent to the buyer. It's not just digital invoicing—it's real-time reporting to the government.
How It Works
Generate Invoice in Your System
Use accounting software to create invoice in JSON format
Upload to IRP (Invoice Registration Portal)
Invoice sent to government portal within 30 days of invoice date
Get IRN (Invoice Reference Number)
GSTN validates and returns unique IRN + QR code
Share with Buyer
Send IRN-embedded invoice to customer
Who Must Comply?
| Effective Date | Turnover Threshold | Estimated Businesses |
|---|---|---|
| Oct 2020 | ₹500 crore+ | ~5,000 |
| Jan 2021 | ₹100 crore+ | ~25,000 |
| Apr 2021 | ₹50 crore+ | ~50,000 |
| Apr 2022 | ₹20 crore+ | ~1,50,000 |
| Oct 2022 | ₹10 crore+ | ~3,00,000 |
| Apr 2025 (NEW) | ₹1 crore+ | ~20,00,000 |
30-Day Implementation Checklist
Week 1: Assessment & Registration
- Day 1-2: Check if your turnover exceeds ₹1 crore (any FY since 2017-18)
- Day 3-4: Register on IRP portal (einvoice1.gst.gov.in) using GST credentials
- Day 5-7: Choose IRP (NIC, Clear, Iris, E&Y, etc.) - all are free
Week 2: Software Selection & Setup
- Day 8-10: Evaluate accounting software compatibility (Tally, Zoho, QuickBooks all support e-invoicing)
- Day 11-12: Upgrade software to e-invoice-enabled version
- Day 13-14: Configure API integration with IRP
Week 3: Testing & Training
- Day 15-18: Generate test e-invoices on sandbox environment
- Day 19-21: Train accounts team on IRN generation process
Week 4: Go Live
- Day 22-25: Run parallel (manual + e-invoice) for safety
- Day 26-30: Full switchover, monitor errors, maintain backup
Software Options
Accounting Software with Built-in E-Invoicing
- • Tally Prime: Most popular in India
- • Zoho Books: Cloud-based, affordable
- • QuickBooks: Global standard
- • Busy: SME-focused
Cost: ₹18,000-54,000/year
Standalone E-Invoicing Tools
- • ClearTax: E-invoice + GST filing combo
- • Iris GST: Popular among CAs
- • Masters India: Affordable option
- • Excel/CSV Upload: Manual but free
Cost: ₹6,000-24,000/year
Invoice Schema (PEPPOL Standard)
Mandatory Fields in E-Invoice
Supplier Details:
- • GSTIN
- • Legal name
- • Address with PIN code
- • State code
Buyer Details:
- • GSTIN (mandatory for B2B)
- • Legal name
- • Address
- • Place of supply
Item Details:
- • HSN/SAC code (6 digits for turnover ₹5 crore+)
- • Quantity, unit, rate
- • Taxable value, GST rate, GST amount
- • Total invoice value
30-Day Upload Rule
Critical Compliance Rule
E-invoice must be generated within 30 days of invoice date (extended from 7 days in Nov 2023).
Example:
- • Invoice Date: March 5, 2025
- • IRN Generation Deadline: April 4, 2025
- • If missed: Invoice invalid for ITC claim by buyer
Penalties for Non-Compliance
₹10,000 Penalty (Section 125)
For not issuing invoice electronically or incorrect details in e-invoice
Buyer Cannot Claim ITC
If invoice lacks valid IRN, buyer's input credit claim will be rejected in GSTR-2B
GST Registration Suspension
Repeated non-compliance may lead to GST registration cancellation
Exemptions from E-Invoicing
B2C Invoices
Retail sales to end consumers
Financial Services
Banking, insurance, passenger transport
Entertainment & Fuel
Cinema tickets, fuel pumps
SEZ Supplies
But DTA sales within India require e-invoice
Common Errors & Solutions
Error: "Duplicate IRN"
Cause: Same invoice number already used. Solution: Use unique invoice numbering series.
Error: "Invalid GSTIN"
Cause: Buyer GSTIN incorrect or cancelled. Solution: Verify buyer GSTIN on GST portal before invoicing.
Error: "HSN code mismatch"
Cause: Wrong HSN format (4 vs 6 vs 8 digits). Solution: Use 6-digit HSN for turnover ₹5 crore+.
Conclusion
E-invoicing at ₹1 crore threshold is a game-changer for GST compliance in India. With 20 lakh+ businesses newly covered from April 2025, early adoption is critical. Start your 30-day implementation now—delay means penalties, loss of buyer trust, and ITC denial for your customers. Choose the right software, train your team, and go live before March 31, 2025.