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Published on 9 April 2025

Enhancements in India's E-invoice System: Interoperability & Features Explained

Introduction

The E-invoice system, operational since October 2020, has significantly streamlined invoice generation for taxpayers in India. By mid-2024, over 631 crore e-invoices have been generated by approximately 11.08 lakh taxpayers, with the average monthly output exceeding 21 crore invoices. This blog highlights the current capabilities, developments, and features of the E-invoice system, along with the recent enhancements in interoperability between the E-invoice1 and E-invoice2 portals.

E-invoice System Overview

Launched in phases, the E-invoice system initially targeted taxpayers with an Annual Aggregate Turnover (AATO) exceeding Rs. 500 crores. As of August 1, 2023, the requirement was adjusted to encompass taxpayers with AATO over Rs. 5 crores, including B2B and export invoices.

Expansion of Portals

Recently, the Goods and Services Tax Network (GSTN) expanded the number of e-invoice portals from one to six, allowing for increased efficiency by incorporating private participation. The second portal, E-invoice2, was launched by the National Informatics Centre (NIC) in March 2023. The E-invoice1 portal continues to be the primary choice for Invoice Reference Number (IRN) generation among users.

Interoperable Services Between E-invoice1 and E-invoice2

Commencing from July 18, 2024, NIC announced the introduction of interoperable services between the E-invoice1 and E-invoice2 portals, which are currently available in a sandbox environment for testing by API and web users. These services are slated to go live in the production environment on August 1, 2024.

Key Features of Interoperability

The interoperable features between the two portals include:

  • Web and API Modes: Both E-invoice1 and E-invoice2 offer web and API modes for e-invoice services.

  • Unified Login Credentials: Taxpayers and logistic operators can access both portals using the same login credentials.

  • Shared API Token: A single token can be utilized for services pertaining to e-invoices and e-waybills across both portals.

  • Service Continuity During Technical Challenges: Should there be any technical issues with the E-invoice1 portal, users have the option to utilize the E-invoice2 portal to maintain e-invoice generation without interruption.

  • Criss-Cross Operations: Users may print or cancel e-invoices generated in one portal using the other portal.

These interoperable services facilitate seamless transitions between portals, enabling taxpayers to manage the cancellation and retrieval of IRNs efficiently. The enhanced system availability ensures that e-invoice generation continues during challenging technical situations.

Conclusion

The advancements in the E-invoice system, particularly the interoperability of the E-invoice1 and E-invoice2 portals, aim to provide taxpayers with enhanced flexibility and reliability.

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