e-Invoicing
e-Invoicing is the system, under Rule 48(4) of the CGST Rules, by which notified taxpayers report each B2B invoice to an Invoice Registration Portal and receive an authenticated IRN and QR code.
e-Invoicing requires notified taxpayers to report B2B invoices to the Invoice Registration Portal, which returns a unique Invoice Reference Number (IRN) and QR code. Governed by Rule 48(4), an invoice without a valid IRN is not a legal tax invoice — so the buyer cannot claim ITC on it. IRN data also auto-populates GSTR-1.
Under Rule 48(4) of the CGST Rules, taxpayers above the notified turnover threshold must generate every B2B invoice through the Invoice Registration Portal (IRP), which authenticates it and returns an IRN plus a QR code. An invoice that should have an IRN but does not is legally invalid — it is treated as no invoice at all.
That validity link matters for the buyer's ITC: no valid invoice, no credit under Section 16(2). Because IRN data flows automatically into the supplier's GSTR-1 and thence into your GSTR-2B, e-invoicing tightens the whole reconciliation chain and reduces mismatch at source. It also narrows the window for fake-invoice fraud, one reason the turnover threshold has been lowered in successive phases.
The Recoup angle: Recoup checks that vendor invoices carry valid IRNs before you book the credit, catching invalid-invoice risk early.