The e-invoicing system in India has changed the way businesses make and send invoices for GST. This system has main parts, including Invoice Registration Portals, which generate Invoice Reference Numbers and allow invoices to be checked quickly.
Enterprises and small enterprises need to understand the Invoice Registration Portal system in order to ensure that GST e-invoicing operates well.
Key Takeaways
- ClearTax, IRIS, Cygnet, EY and NIC are some of the IRPs that are working to make it easy for businesses to meet the regulations.
- Beginning in August 2023, all companies with an AATO above Rs. 5 crore are required to generate e-invoices through an authorised IRP.
- According to the GST law, a B2B invoice from a recognised IRP that lacks an IRN is legally void.
- Private IRPs provide additional value through ERP integration, reconciliation tools, and committed support; NIC IRP is free to use.
- Businesses with AATO above Rs. 10 crore must report invoices to IRP within 30 days of the invoice date.
In India, there is a tax system called the GST framework. The government has a portal, like a website, called an IRP. Companies can use the IRP to upload invoices for the things they sell to businesses. When they do this, they get a number called an IRN. This IRN makes the invoice a real and legal document under the GST rules. The invoice also includes a digital signature and a QR code, which is like a special barcode, and together with the IRN, these make the invoice legally valid under the GST statute and the IRP system.
When a taxpayer generates an invoice in their ERP or accounting software, the invoice data is sent to the IRP in a standard JSON format. The IRP then:
E-invoicing is mandatory for GST-registered businesses whose Aggregate Annual Turnover (AATO) exceeds the threshold. The mandate has been progressively expanded:
Phase | Effective Date | Turnover Threshold |
Phase 1 | October 2020 | Above Rs. 500 crore |
Phase 2 | January 2021 | Above Rs. 100 crore |
Phase 3 | April 2021 | Above Rs. 50 crore |
Phase 4 | April 2022 | Above Rs. 20 crore |
Phase 5 | October 2022 | Above Rs. 10 crore |
Phase 6 | August 2023 | Above Rs. 5 crore |
Current applicability (2025)
For B2B transactions, exports, supplies to SEZs, and credit/debit notes, all GST-registered companies having an AATO of more than Rs. 5 crore are required to create electronic invoices. Currently, businesses below this value are exempt; however, a further reduction in the threshold is anticipated.
Originally, the National Informatics Centre (NIC) was the sole IRP in India. In March 2023, GSTN expanded the ecosystem by authorising four private companies as additional IRPs. Indian businesses now have five IRP options to choose from:
IRP Name | Operated By | Pricing | Best For | Portal / URL |
ClearTax IRP | Defmacro Software Pvt. Ltd. | Paid (plans available) | Enterprises, SMEs, ERP users | |
NIC IRP | National Informatics Centre (Govt.) | Free | All GST taxpayers | |
IRIS IRP | IRIS Business Services Ltd. | Free + Paid plans | Enterprises, solution providers | |
Cygnet IRP | Cygnet InfoPath Pvt. Ltd. | Paid (enterprise) | Mid-size & large enterprises | |
EY IRP | Ernst & Young LLP | Paid (enterprise) | Large enterprises |
The five approved IRPs that are currently accessible can be daunting. This useful framework will help you make your choice:
1. For small businesses and startups (AATO Rs. 5–20 crore)
Start with NIC IRP (einvoice1.gst.gov.in and einvoice2.gst.gov.in). It is free, well-documented and sufficient for businesses with moderate invoice volumes. No integration costs or subscription fees.
2. For growing businesses with ERP systems (AATO Rs. 20–100 crore)
Consider ClearTax IRP or Cygnet IRP. Both offer seamless ERP connectors for SAP, Oracle, and Tally, as well as reconciliation tools that significantly reduce manual GST filing effort.
3. For large enterprises and solution providers (AATO above Rs. 100 crore)
Evaluate ClearTax IRP or IRIS IRP for their advanced API capabilities, bulk processing, and enterprise support. If your business has both advisory and compliance needs, EY IRP is worth considering.