India compliance
What is an e-invoice and IRN?
An e-invoice is a GST invoice that has been reported to the government's Invoice Registration Portal. The portal checks it and returns an Invoice Reference Number (IRN) and a signed QR code, which are printed on the invoice. Without them, an invoice that falls under e-invoicing is not valid.
Which hotels and which invoices
E-invoicing applies to businesses whose annual turnover has crossed ₹5 crore in any financial year since 2017-18. It covers invoices, credit notes and debit notes issued to other registered businesses (B2B), such as a company paying for its employees' stay. Bills to individual guests don't need an IRN.
How it works in practice
The invoice details are sent to the portal, usually straight from the billing software. The IRN and QR code come back within seconds and are printed on the invoice given to the company. An IRN can be cancelled on the portal only within 24 hours; after that the correction is made with a credit note. Confirm the rules that apply to you with your accountant, as thresholds have changed over time.
In StaySynq
StaySynq generates the IRN and QR code for B2B invoices directly through the government portal's API, and lets you cancel an IRN from the invoice.
Common questions
Do hotels need an e-invoice for every guest?
No. Only invoices to GST-registered businesses need an IRN, and only if the hotel's turnover is above the e-invoicing threshold.
Is an e-invoice the same as an e-way bill?
No. An e-way bill covers the movement of goods. An e-invoice registers the invoice itself.
Related terms
- SAC codes for hotelsSAC (Services Accounting Code) is the code that classifies a service on a GST invoice in India. Hotels commonly use 996311 for room accommodation, codes in the 99633 group for restaurant and food service, and 996334 for catering at events and banquet halls.
- TCS on OTA bookingsTCS on OTA bookings is tax collected at source under Section 52 of India's GST law. When an online travel agency collects payment from the guest on the hotel's behalf, it deducts a small percentage of the booking value, pays it to the government and reports it against the hotel's GSTIN.
- City ledgerA city ledger is the hotel's record of money owed by parties who are not currently staying: companies with credit accounts, travel agents, OTAs and guests who left with an unpaid balance. It is the hotel's accounts receivable for stays that were billed rather than paid at check-out.
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