e invoices mandate from 1 October for Businesses with turnover exceeding 10 croree invoices mandate from 1 October for Businesses with turnover exceeding 10 crore

E-invoicing’s importance has grown in the business industry since the GST council’s green signal. The concept of e-invoicing software came into being in September 2019. The key objective was to ensure the interoperability of e-invoices across the GST invoicing software. E-invoicing, a short form for electronic invoicing is an online invoicing software to generate B2B invoices. The supplier electronically uploads all the invoices, and Invoice Registration Portal (IRP) authenticates them with an Invoice Registration Number (IRN) and QR code. However, the IRN and QR code should be printed on the invoice before the supplier issues the invoice to the buyer.

It is necessary to understand the necessity and benefits of e-invoicing software. Presently, businesses with a turnover exceeding 20 crores can file e-invoices, but before, this was allowed to business owners having a turnover of more than 50 crores. However, from 1st October 2022, the fifth phase of e-invoicing software implementation will begin and applies to businesses with a turnover exceeding 10 crores. 

This article will explain the new limit reduction in the e-invoicing bill applicability by the business owners. 

Let’s dive right into the article.

Necessity of e-invoices, for businesses with turnover exceeding 10 crore

One of the major reasons for introducing e-invoicing software is to pre-populate the returns and reduce the reconciliation challenges. To understand this further, you must know that the standard online accounting software has one major loophole. For instance, the invoices generated by one online accounting software might not be readable in the other invoicing billing software. Therefore, to overcome this barrier, a universal GST accounting format has been designed to ensure data interoperability. This IRP system shares the invoice data of the GST accounting and e-way bill systems.  

The essential goal of e-invoicing software is to reduce errors and minimize the risks between buyers and sellers because e-invoicing software eliminates the ability to counterfeit GST invoices. Some of the important takeaways are: 

  1. The e-invoicing software curbs tax invasion. 
  2. It provides traceability and transparency. 
  3. The GST accounting portal can continually check the legitimacy of the transactions. 

Also Read: Benefits of e invoicing software

Process of e-invoicing

The e-invoicing software requires you to generate the invoice data in a prescribed format. After formatting the invoice, you must upload it to IRP, which validates and authenticates the data with IRN and QR code. 

The steps are explained below: 

  1. Firstly, generate the e-invoice in a prescribed format using the offline tool set by the portal or by using business management software. 
  2. After that, login-in to the portal. 
  3. Upload the e-invoice file to IRP. The system will send the required details directly to the IRP portal if the software integrates with IRP. 
  4. Then the key elements of the invoice are validated by the IRP portal. After validation, the invoice data is authenticated with an IRN number and QR code. 
  5. From thereon, you can download or receive the e-invoice file.

Read: Signs that your business needs a Billing Invoicing System

New limit reduction of e-invoice

Effective from 1st October 2022, every business owner with an annual turnover exceeding 10 crores has to electronically upload all B2B and B2G invoices to the portal. Earlier, this was applicable to those with a turnover exceeding twenty crores. Generate the e-invoice in the required format and upload it to the IRP portal. The IRP portal will authenticate the e-invoice data and return the file with IRN and QR code. If there is no IRN and QR code, the e-invoice will not be valid. E-invoicing is mandatory for every business as GST accounting software seamlessly generates an e-invoice

Benefits of e-invoices

E-invoicing software provides a lot of benefits and power to major industries. They save you time, money, and effort and provide transparency throughout the process. Some of the key benefits of e-invoicing software are below:

  1. The GST accounting software tracks every moment of your taxes from sale to their end destination. 
  2. The portal validates your data and saves you time to focus on another official task as well. 
  3. With GST accounting software, you can create a professional and customized invoice format suitable for your business. 
  4. The e-invoicing software will track any potential frauds and manipulations. 
  5. The digital e-invoicing software has made India go green by decreasing the use of paper. 

Read: Make your life easier with OneStop Online Invoicing Software

Benefits of e invoicing Software

With the advent of the Internet, the billing system has evolved significantly. Under the new e-invoicing software, all business-to-business invoices are electronically authenticated by GSTN for further use on the common GST portal. The invoicing billing software issues an identification number against every bill by the IRP, short for Invoice Registration Portal. As e-invoicing software usage has grown, the accounting field has also incorporated it. 


The E-invoicing software requires you to submit an invoice on the GST portal to generate multiple reports with a one-time upload. Accounting software uses this portal to benefit taxpayers and let them perform their e-invoicing activities. Along with this, this online accounting software allows users to migrate all their data safely with the support of the new e-invoicing software. 

Note: Signs your Business need a Billing & Invoicing Software

Features of a Good Online Accounting Software

  1. The GST invoicing software helps you keep track of all entries of a particular invoice. 
  2. The e-invoicing accounting software lets the user directly integrate with the GST portal. 
  3. E-invoicing software is easily accessible through different operating systems, such as web browsers and mobile phones. 
  4. It is very cost-effective. 
  5. It can reduce the risk of fraud and promote trust & reliability. 

The Current Invoicing System

At present, businesses generate their invoices through different tools and upload the final invoice manually for the GSTR-1 return instead of using single accounting software. After uploading the invoice, the user can see the information in GSTR-2A. On the other hand, transporters have to generate separate e-way bills. However, for businesses, the procedure is a little less cumbersome. They can use the accounting software with tools for GST integration and e-invoicing. 

For businesses, the e-invoicing system allows the user to import the invoice through excel or API integration. The entered data effortlessly flows through the entire GST portal. 

Also Read : Introducing One Stop Accounting Software for Small Business

Benefit of e-invoicing to Businesses

The major role of e-invoicing is to benefit the business and automate the process with the help of accounting software. A few of the advantages of using e-invoicing through GSTN are below.

  • E-invoicing helps fill a significant gap for GST in data reconciliation, leading to a major reduction in mismatch errors. 
  • There is a reduction in data entry errors as the e-invoices generated by multiple software can be read by this accounting software, offering integration with the GST portal.
  • This GST accounting software allows all the authorities to track the invoices the supplier has prepared. 
  • Another benefit of e-invoicing is that it lets you generate tax credit reports. 
  • This software disables the possibility of surveys and audits by the tax authorities as all the information about your business is available at the transaction level. 
  • Backward integration and automation of the process can make filing tax returns effortless. 
  • It auto-populates the required details of the invoice in multiple returns. 

Read: Online Invoicing Software Can Make Your Life Easier

E-invoicing Curbs Tax Evasion

Another major benefit of e-invoicing accounting software is that it helps in proper tax compilation and curbs tax evasion in the following ways: 

  • As the accounting software generates an e-invoice through the GST portal, the tax authorities get complete access to all the transactions happening in real-time. 
  • Another benefit of generating invoices before a transaction is that there are fewer chances of manipulating the invoice now. 
  • There cannot be any fake tax credit because invoices are integrated with GSTIN every time they are generated through the GST portal. 

Everything has two sides to the coin. If the e-invoicing accounting software has advantages, it also has some disadvantages that you shall not ignore. On one hand, it helps reduce tax evasion and fraud in B2C invoices. 

Because it only supports B2B invoices. Another disadvantage is that it does not store invoices for more than 24 hours. Therefore, study all about the new Invoicing Software for Small businesses or large one before adopting it.