What is IRN in e-invoicing?

IRN (Invoice Reference Number) is a unique 64-character hash generated by the Invoice Registration Portal (IRP) for each e-invoice. An invoice is valid under GST only after IRN is generated. Without IRN, the invoice is considered non-compliant.

Are B2C invoices covered under e-invoicing?

No. E-invoicing currently applies only to B2B transactions, exports, and supplies to SEZ units/developers. B2C (retail) invoices are exempt from the e-invoicing mandate.

GSTDetailed Comparison

E-Invoicing (GST) vs Manual GST Invoice

E-Invoicing vs Manual Invoice — GST compliance for B2B transactions

Option A

E-Invoicing (GST)

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Option B

Manual GST Invoice

Overview

E-invoicing under GST requires businesses above a turnover threshold to generate invoices through the government's Invoice Registration Portal (IRP) and obtain an IRN (Invoice Reference Number). Manual invoices still work for businesses below the threshold but miss out on auto-ITC reconciliation.

Head-to-Head Comparison

Factor	E-Invoicing (GST)	Manual GST Invoice	Winner
Mandatory Threshold	Turnover > ₹5 crore (as of 2023)	Allowed for turnover < ₹5 crore	Tie
IRN Generation	Required — IRP generates unique IRN + QR code	No IRN — self-generated invoice number	A wins
Auto ITC Reconciliation	GSTR-2B auto-populated from e-invoice	Manual reconciliation required	A wins
Compliance Risk	Low — validated at IRP	Higher — manual errors possible	A wins
E-Way Bill Generation	Auto-generated from e-invoice data	Separate manual process	A wins

Data updated for FY 2025–26. Regulations may change — consult a professional before deciding.

Which Should You Choose?

Choose E-Invoicing (GST) if…

E-Invoicing is mandatory if your turnover exceeds ₹5 crore. Even if not mandatory, it reduces reconciliation errors and speeds up ITC claims.

Get E-Invoicing (GST)

Choose Manual GST Invoice if…

Manual invoicing is allowed for businesses with turnover under ₹5 crore, but switching to e-invoicing voluntarily is still recommended.

Still not sure which to choose?

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Frequently Asked Questions

Common questions about E-Invoicing (GST) vs Manual GST Invoice

As of August 2023, e-invoicing is mandatory for all GST-registered businesses with aggregate annual turnover exceeding ₹5 crore. The threshold has been progressively lowered from ₹500 crore in 2020.

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