Under Indian GST law, all businesses with aggregate turnover exceeding ₹5 Crore must generate a statutory 64-character Invoice Reference Number (IRN) and digitally signed QR code via an approved Invoice Registration Portal (IRP) before dispatching B2B goods.
1. The Risk of Invalid B2B Invoices
Moving B2B goods with a regular tax invoice without a validated IRN is legally treated as transporting goods without an invoice under Section 122 of the CGST Act:
- Mandatory Section 122 Penalty: ₹10,000 or 100% of tax due (whichever is higher) per invoice.
- Loss of Input Tax Credit (ITC): The buyer is strictly prohibited from claiming ITC on invalid invoices, leading to commercial disputes.
📑 B2B E-Invoice Non-Compliance Penalty Simulator
Statutory AuditSimulate penalty liabilities and buyer ITC disqualification exposure for missing IRN QR codes:
Flagged Non-Compliant Invoices: 6 Invoices (~₹15,00,000 B2B dispatch value)
Buyer Disqualified Input Tax Credit (ITC): ₹2,70,000 at risk of reversal
Mandatory Section 122 Statutory Penalty: ₹2,70,000 (100% of applicable tax)
Buyer Disqualified Input Tax Credit (ITC): ₹2,70,000 at risk of reversal
Mandatory Section 122 Statutory Penalty: ₹2,70,000 (100% of applicable tax)
⭐ RECOMMENDED PLATFORM
NIC e-Invoice Portal (IRP)
Official GST Invoice Registration Portal for authenticating B2B electronic invoices.
Explore NIC e-Invoice Portal (IRP) ↗* Verified resource link for operators and developers.
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