E-invoicing & e-way bills: Complete Guide
Updated January 2026 · 10 min read
Every B2B sale in India moves through a chain of documents — a proforma to lock the order, a GST tax invoice with an IRN and QR code, and an e-way bill to move the goods. This guide explains how each one works, when you need it, and how Manual2AI generates them straight from one invoice.
What is GST e-invoicing?
E-invoicing is the system where a B2B tax invoice is registered on the government's Invoice Registration Portal (IRP) before it reaches your customer. The IRP returns an IRN (a unique reference number) and a signed QR code that make the invoice verifiable and GST-valid.
It applies to businesses above the notified turnover threshold and covers tax invoices, credit notes, and debit notes — the documents that flow into your GSTR-1 and your customer's input credit.
The three documents behind every sale
Proforma invoice
Sent before the sale to confirm the order and collect advance. Not a GST document — no tax is filed against it, and it can be edited freely.
Tax invoice with IRN
The GST bill that records the sale. Above the turnover threshold it must carry an IRN and QR code signed by the government IRP before you send it.
E-way bill
The transport document that lets goods move above ₹50,000. Linked to the invoice, it carries the vehicle, route, and validity for the journey.
Proforma vs Tax invoice vs E-way bill
| Attribute | Proforma | Tax invoice | E-way bill |
|---|---|---|---|
| Purpose | Confirm order | Record the sale | Move the goods |
| GST filed against it | No | Yes (GSTR-1) | No |
| IRN + QR required | Never | Above threshold | Inherits invoice |
| Moves physical goods | No | Optional | Yes, mandatory |
| When it's raised | Before payment | On dispatch / sale | With dispatch |
| Editable after issue | Freely | Credit / debit note | Update part-B |
| Tally sync | Manual2AI owns | Two-way | Two-way |
Why teams generate them in Manual2AI
faster than typing invoices into the portal by hand
GST-compliant IRN, QR and HSN on every invoice
double entry — invoices sync straight to Tally
late-fee surprises with filing-ready period summaries
Raise a GST invoice, IRN and e-way bill in one click.
Try freeAre e-invoices and e-way bills legally valid?
Yes. An e-invoice carries an IRN and a digitally signed QR code issued by the government IRP, which makes it the legally valid tax invoice under GST. An e-way bill generated on the portal is the required document to move goods. Manual2AI produces both with the right details, then keeps them reconciled and synced with Tally.
Frequently asked questions
Businesses above the GST e-invoicing turnover threshold must register every B2B tax invoice on the Invoice Registration Portal (IRP) to get an IRN and signed QR code before issuing it. Manual2AI does this from the invoice you already raised.
The IRN (Invoice Reference Number) is a unique hash the IRP assigns to a valid tax invoice. The QR code encodes the key invoice details and the IRP signature, so anyone can verify the invoice is genuine.
An e-way bill is required to move goods worth more than ₹50,000 between locations. It links to the invoice and carries the transporter and vehicle details for the journey, with a validity based on distance.
An IRN can be cancelled on the IRP within the allowed window (typically 24 hours) if not already used; after that you issue a credit note. An e-way bill can be cancelled before goods move, and Part-B can be updated mid-transit.
Manual2AI keeps every invoice, credit note, and payment reconciled and produces filing-ready period summaries (GSTR-1 ready), and syncs with Tally — so your accountant files from clean, matched data instead of rebuilding it.
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