← Back to Blog
Dec 20, 2025 GST Updates 5 min read

E-Invoicing: Everything You Need to Know

AK

Anil Kumar Sanyal

GST Expert & Founder

Electronic Invoicing (E-Invoicing) is a system where B2B invoices are electronically authenticated by GSTN for further use on the common GST portal. It is one of the most significant reforms in the Indian GST landscape.

Applicability of E-Invoicing

As of late 2025, E-Invoicing is mandatory for all registered businesses with an aggregate turnover exceeding ₹5 Crores in any preceding financial year from 2017-18 onwards.

How Does it Work?

  1. Generate Invoice: You generate the invoice in your ERP/Accounting software (like Tally Prime) as usual.
  2. Upload to IRP: The software uploads the JSON file of the invoice to the Invoice Registration Portal (IRP).
  3. Validation: The IRP validates the key details of the invoice.
  4. IRN Generation: Upon successful validation, the IRP generates a unique Invoice Reference Number (IRN) and digitally signs the invoice.
  5. QR Code: The IRP adds a QR code to the JSON.
  6. Completion: The signed JSON data along with IRN and QR code is returned to the taxpayer.

Benefits of E-Invoicing

  • Standardization: Creates a standard format for invoices across different software.
  • Reduced Errors: Manual data entry errors are minimized as data is auto-populated for GSTR-1 and E-Way Bills.
  • Faster Input Tax Credit: Since data is pushed to the buyer's GSTR-2A/2B in real-time, ITC claims become faster and more reliable.

Implementing in Tally Prime

Tally Prime offers a seamless, integrated solution for E-Invoicing. You don't need to go to the portal manually. Tally can directly communicate with the IRP to generate IRN and print the QR code on your invoices instantly.

Conclusion

E-Invoicing is not just a compliance hurdle; it's an opportunity to modernize your billing process. Ensure your systems are ready and compliant to avoid penalties.

Is E-Invoicing applicable to you?
Check Compliance Status