Module 6: E-Invoicing & E-Way Bill System – Streamlining GST Compliance
What is E-Invoicing under GST?
E-Invoicing refers to the electronic authentication of B2B invoices through the GST portal. It applies to businesses over a specific turnover threshold and ensures real-time invoice reporting to the government.
Introduced to standardize invoicing, it helps in:
- Auto-populating GSTR-1 returns
- Avoiding fake invoices
- Facilitating faster ITC reconciliation
Applicability of E-Invoicing (as of FY 2025-26)
E-Invoicing is mandatory for businesses with aggregate turnover exceeding ₹5 crore in any preceding financial year from 2017-18 onwards.
✅ Applies to:
- B2B supplies
- Exports
- Credit/Debit Notes under B2B
❌ Not applicable to:
- B2C invoices
- Banks, NBFCs, Insurance companies
- SEZ units (developers included)
- Government departments
How to Generate E-Invoice
- Generate invoice using your billing/accounting software.
- Convert it into JSON format.
- Upload JSON to the Invoice Registration Portal (IRP).
- IRP generates a unique Invoice Reference Number (IRN).
- IRP digitally signs and returns the e-invoice with QR Code.
- Download and share with the recipient.
What is an E-Way Bill?
The E-Way Bill is an electronic document required for the movement of goods worth more than ₹50,000, ensuring traceability of the shipment and preventing tax evasion.
When is E-Way Bill Required?
- Inter-state movement of goods (mandatory)
- Intra-state movement (required in many states above ₹50,000)
- For goods transported by road, rail, air, or vessel
E-Way Bill Components
- Part A: Details of goods, invoice, consignee, transporter
- Part B: Transporter details like vehicle number
Validity of E-Way Bill
| Distance | Validity |
|---|---|
| Up to 100 km | 1 day |
| For every additional 100 km | +1 day |
How to Generate E-Way Bill
- Visit https://ewaybillgst.gov.in
- Login and select ‘Generate New’
- Fill Part A and Part B
- Submit and generate E-Way Bill Number and QR Code
Integration Between E-Invoicing & E-Way Bill
When e-invoice is generated on the IRP:
- Part A of the E-Way Bill gets auto-populated
- Saves time and reduces duplication
Businesses can also generate both documents in one go if their ERP is integrated with IRP.
Benefits of E-Invoicing & E-Way Bill System
✔ Automation in GST Returns
✔ Accurate Input Tax Credit availability
✔ Reduces tax evasion
✔ Better logistics tracking
✔ Faster reconciliation with GSTR-1 and GSTR-2B
Penalties for Non-Compliance
| Non-Compliance | Penalty |
|---|---|
| Not generating e-invoice | ₹10,000 per invoice or 100% of tax due |
| Wrong E-Way Bill | ₹10,000 or tax amount (whichever is higher) |
| Transport without valid EWB | Detention and penalty up to the entire value of goods |
Conclusion
The E-Invoicing and E-Way Bill systems are powerful tools that promote transparency, automation, and efficient tax compliance under GST. Businesses must ensure their systems are ERP-integrated and GST-ready to stay compliant.
💼 Need Help Setting Up E-Invoicing or E-Way Bill Systems?
Verotus Finlegal Solutions LLP provides expert support in GST return filing, e-invoicing integration, and compliance consulting.
📞 Call Now: +91-7066336680
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