What is Consequences of incorrect e-invoicing?
Nexa Consultancy | Startup & Finance Glossary
An invoice that does not comply with e-invoicing rules (where applicable) is considered an invalid invoice. This means the buyer cannot claim Input Tax Credit (ITC) on it, and the seller may face penalties for non-compliance, equivalent to 100% of the tax due or ₹10,000, whichever is higher.
Startup Example: A startup with a turnover of ₹25 crores issues a B2B invoice without generating an Invoice Reference Number (IRN) from the GST portal. The invoice is invalid, and the startup faces penalties.
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