DISCLAIMER: This article is for informational purposes only and does not constitute legal, tax, financial, or investment advice. Laws and regulations vary by jurisdiction and change frequently. Always consult a qualified professional before making any decision.
On 1 June 2026, the Central Board of Indirect Taxes and Customs (CBIC) concluded the phased wind-down of third-party e-invoicing service providers (ESPs) for B2B invoices under the Goods and Services Tax (GST). All traders with a turnover exceeding Rs 5 crore must now integrate directly with the Invoice Registration Portal (IRP) or face non-compliance notices. This shift eliminates intermediary software dependency and centralises invoice data collection with the tax authority.
Market signals
CBIC notified on 15 May 2026 that ESP-mediated e-invoicing is no longer valid for B2B supply. All invoices must be generated and reported directly via the IRP JSON Web Token (JWT) API. Traders using legacy ESP solutions face invoice rejection and GST Input Tax Credit (ITC) reversal.
Invoices not registered via IRP after the deadline are treated as not issued under GST law. Buyers lose ITC eligibility, and sellers may face demands under Section 122 of the CGST Act 2017 for short-payment of tax. No retrospective correction window applies.
Traders with turnover below Rs 5 crore, previously exempt from e-invoicing, now face voluntary adoption pressure ahead of mandatory rules expected by March 2027. Early adopters gain API stability and audit-readiness; late-movers risk operational disruption during forced migration.
This change affects GST return filing, ITC reconciliation, and audit trails for all B2B traders. The IRP is the single source of invoice truth; mismatches between IRP data and GSTR-1 filings trigger auto-denial of ITC and demand notices. Vinayakam Consultants assists traders in mapping legacy ESP workflows to IRP APIs, testing JWT generation, validating JSON schema compliance, and scheduling parallel-run periods to avoid rejection queues during peak filing windows. We also review ITC impact assessments and advise on audit-readiness protocols.
Your action checklist
- Audit all outstanding ESP-generated invoices (issued before 1 June 2026); confirm they appear in IRP portal. Flag any mismatch between your accounting system and IRP data, as GSTR-1 reconciliation will fail.
- Obtain API credentials (client ID, secret) from the IRP and test JWT token generation in your accounting or ERP software. Schedule a dry run with at least 10 test invoices before live filing.
- Map your current invoice numbering, date-stamp and line-item coding to IRP JSON schema. Engage your software vendor or a systems integrator if your ERP does not yet support native IRP output.
- Reconcile GSTR-1 (filed post-1 June) with IRP downloaded data monthly. Any supply shown in IRP but missing from GSTR-1 will trigger auto-ITC denial for your buyer; flag this immediately to your CA and buyer.
Frequently asked questions
From 1 June 2026, all B2B traders with turnover exceeding Rs 5 crore must integrate directly with the Invoice Registration Portal (IRP). Third-party e-invoicing service providers (ESPs) are no longer valid for GST e-invoicing.
Non-compliance results in invoice rejection, GST Input Tax Credit (ITC) reversal, ITC denial, and potential demands under Section 122 of the CGST Act 2017. Invoices not registered via IRP are treated as not issued under GST law.
Currently exempt from mandatory e-invoicing, traders below Rs 5 crore face voluntary adoption pressure with mandatory rules expected by March 2027. Early adoption ensures API stability and audit-readiness.