GST E-Invoicing Threshold 2026: Rs 5 Crore Limit and 30-Day Rule
E-invoicing is mandatory once your aggregate turnover crosses Rs 5 crore in any year. Here is how to check applicability, follow the 30-day rule and generate IRNs.
GST e-invoicing is compulsory for any business whose aggregate annual turnover has crossed Rs 5 crore in any financial year since 2017-18, and businesses with turnover of Rs 10 crore or more must report each invoice to the Invoice Registration Portal within 30 days of its date. This guide explains how to check whether you are covered, which documents need an IRN, how the 30-day rule works, the exact steps to generate an e-invoice, and how to fix mistakes without losing your customer’s input tax credit.
Key Takeaways
- The threshold is still Rs 5 crore of aggregate turnover (PAN-level) in any year from 2017-18 onwards, in force since 1 August 2023.
- Once you cross it in any year, the requirement stays even if turnover drops later.
- If your aggregate turnover is Rs 10 crore or more, the IRP rejects invoices reported more than 30 days after the document date (since 1 April 2025).
- E-invoicing covers B2B invoices, credit notes, debit notes and exports, not ordinary B2C bills.
- An IRN can be cancelled only within 24 hours, and only in full. After that, use a credit note.
What GST e-invoicing actually means
E-invoicing does not mean the government creates your invoice. You still raise the invoice in your own billing or accounting software. The difference is that, for covered documents, you must report the invoice details in a standard JSON format to an Invoice Registration Portal (IRP). The IRP validates it and returns three things:
- IRN (Invoice Reference Number): a unique 64-character reference for that document.
- Signed QR code: digitally signed by the IRP, which must be printed on the invoice you give the customer.
- Acknowledgement number and date.
An invoice that should have an IRN but does not is not treated as a valid invoice under the GST rules (Rule 48(5) of the CGST Rules). That is the real risk: your buyer may be unable to claim input tax credit on it, and buyers notice quickly.
If you are still getting the basic invoice fields right, start with our guide to the GST invoice format and mandatory fields, then come back here.
Who must generate e-invoices: the Rs 5 crore test
Under Notification No. 10/2023-Central Tax, e-invoicing applies to registered persons whose aggregate turnover exceeded Rs 5 crore in any financial year from 2017-18, with effect from 1 August 2023. As of October 2026 we found no official change to this threshold. Proposals to lower it further have been discussed in the past, but none is in force.
How the threshold came down over the years
| From | Aggregate turnover above |
|---|---|
| 1 October 2020 | Rs 500 crore |
| 1 January 2021 | Rs 100 crore |
| 1 April 2021 | Rs 50 crore |
| 1 April 2022 | Rs 20 crore |
| 1 October 2022 | Rs 10 crore |
| 1 August 2023 | Rs 5 crore (current) |
Three points small businesses miss
- It is PAN-level. Aggregate turnover adds up all GSTINs under the same PAN across states. A trader with Rs 3 crore in Gujarat and Rs 2.5 crore in Maharashtra under one PAN has crossed Rs 5 crore.
- Any year counts. If you crossed Rs 5 crore in any year since 2017-18, you are covered, even if this year’s turnover is lower.
- Start from the first day of the next year if you cross mid-year. In practice, a business that crosses the limit during a year starts e-invoicing from the following financial year. Check this timing with your accountant, because it decides when your first IRN is due.
Worked example
Take an illustrative case. A Ludhiana hosiery wholesaler had aggregate turnover of Rs 5.4 crore in 2023-24 and Rs 4.6 crore in 2025-26. Because it crossed Rs 5 crore in 2023-24, it must e-invoice for all B2B sales from 1 April 2024 onwards, and the lower turnover in 2025-26 does not take it out of the system.
The GST portal shows your aggregate annual turnover on the dashboard after you log in at gst.gov.in. Check it before you decide.
If you are close to Rs 5 crore this year
Many growing businesses cross the limit during the festive quarter, when October-December sales jump. If your year-to-date turnover suggests you will end the year above Rs 5 crore, prepare now rather than in March:
- Ask your accountant to project full-year aggregate turnover across all GSTINs by December.
- Check whether your current billing software supports e-invoicing, or what the upgrade costs.
- Clean your customer master: verify every B2B buyer’s GSTIN, legal name and state code.
- Build an HSN master for all products and services, with the correct number of digits for your turnover.
- Run a few test invoices on the IRP’s sandbox or through your software vendor before the start date.
- Tell your sales and dispatch staff that, from the start date, goods leave only with an IRN-bearing invoice.
Which documents need an IRN (and which do not)
| Document or supply | E-invoice needed? |
|---|---|
| Tax invoice for B2B supply to a registered buyer | Yes |
| Credit note and debit note on a B2B supply | Yes |
| Export invoice (with or without payment of tax) | Yes |
| Supplies to SEZ units or developers, deemed exports | Yes |
| B2C invoice to an unregistered customer | No (large businesses have a separate dynamic QR code rule for B2C) |
| Delivery challan, bill of supply, import bill of entry | No |
Entities exempt from e-invoicing
Some categories are exempt whatever their turnover, under Notification No. 13/2020-Central Tax as amended: banking companies and certain financial institutions including NBFCs, insurers, goods transport agencies supplying road freight services, passenger transport service providers, suppliers of admission to cinema screens (specified cases), and SEZ units. Note that SEZ developers are not automatically exempt. If you rely on an exemption, keep a note in your records of which entry applies.
The 30-day reporting rule, explained
GSTN issued an advisory on 5 November 2024 that taxpayers with aggregate annual turnover of Rs 10 crore and above cannot report an e-invoice on the IRP more than 30 days after the document date, from 1 April 2025. The limit was earlier applied only to businesses with Rs 100 crore or more. You can read the advisory as published on the Maharashtra GST department’s site.
| Your aggregate annual turnover | E-invoicing | 30-day reporting limit |
|---|---|---|
| Rs 5 crore or less (never crossed) | Not mandatory | Not applicable |
| Above Rs 5 crore but below Rs 10 crore | Mandatory | No time limit as of now, per the advisory |
| Rs 10 crore and above | Mandatory | Must report within 30 days of document date |
The advisory’s own example: an invoice dated 1 April 2025 cannot be reported after 30 April 2025. The restriction applies to invoices, credit notes and debit notes. The system checks the document date, not the date you noticed the mistake.
Even below Rs 10 crore, do not treat “no time limit” as a reason to delay. The e-invoice should exist when you issue the invoice, and late IRNs create mismatches with your GSTR-1 and your buyer’s GSTR-2B. Generate the IRN before the goods leave or the invoice is sent.
How to generate an e-invoice: step by step
- Confirm applicability. Check your aggregate turnover for each year since 2017-18 on the GST portal.
- Choose an IRP. The NIC-run portal at einvoice1.gst.gov.in is free. GSTN has also authorised other private IRPs. Any authorised IRP works; pick the one your software supports.
- Register on the IRP using your GSTIN and the mobile number registered with GST.
- Pick a generation method that fits your volume:
- A few invoices a day: enter details directly on the IRP web form or use the offline bulk generation tool.
- Regular volumes: use accounting software (Tally, Busy, Zoho Books, Marg and others) with built-in e-invoice integration.
- High volumes: connect your ERP to the IRP through APIs or a GST Suvidha Provider.
- Raise the invoice in your system with all mandatory fields: GSTINs, HSN codes, taxable value, tax rates and place of supply. Wrong HSN codes and GSTINs are the most common rejection reasons.
- Submit to the IRP. The software sends the JSON. The IRP checks for duplicates and validates the data.
- Receive the IRN, signed QR code and acknowledgement. Print the QR code on the invoice copy you send to the buyer.
- Generate the e-way bill if needed. Part A details can flow from the e-invoice, so you only add transport details.
- Check GSTR-1. E-invoice details are auto-populated in GSTR-1 for the period. Review them before filing; do not add the same invoices again manually.
For quick tax maths while preparing invoices, our GST calculator splits the taxable value and GST, but always use your billing software for the final invoice.
What the QR code contains
The signed QR code lets anyone verify the invoice offline. It carries key details such as:
- Supplier GSTIN and recipient GSTIN
- Invoice number and date
- Invoice value
- Number of line items
- HSN code of the main item
- The IRN and its generation date
A QR code you create yourself, for example a UPI payment QR, is not the e-invoice QR. The buyer and tax officers need the one signed by the IRP.
Cancelling or correcting an e-invoice
- Within 24 hours: you can cancel the IRN on the IRP. Cancellation is for the full document; partial cancellation is not allowed.
- If an e-way bill is active for that IRN, cancel the e-way bill first, or the IRN cannot be cancelled.
- After 24 hours: the IRN cannot be cancelled on the IRP. Issue a credit note (or debit note) with its own IRN, or amend the details through GSTR-1 as allowed under GST law.
- Do not reuse the invoice number. The IRP treats the document number as used, even after cancellation. Issue a fresh number in your series.
Common mistakes and how to avoid them
| Mistake | Fix |
|---|---|
| Assuming e-invoicing stopped because turnover fell | Check every year since 2017-18; once crossed, it stays |
| Counting only one state’s GSTIN | Add all GSTINs under the PAN |
| Generating IRNs in a batch at month-end | Generate at the time of invoicing; above Rs 10 crore, late ones are rejected |
| Wrong buyer GSTIN or HSN code | Validate GSTINs on the GST portal and keep an HSN master in your software |
| Printing invoices without the signed QR code | Set your invoice template to pull the IRP’s QR image |
| Adding e-invoiced documents again in GSTR-1 | Review auto-populated data; edit only where needed |
Penalties for not issuing an e-invoice where required can apply under Section 122 of the CGST Act, depending on the facts. The bigger day-to-day cost is commercial: buyers delay payments or refuse invoices that do not carry a valid IRN, because their input tax credit depends on it.
Frequently Asked Questions
What is the e-invoice limit under GST in 2026?
The limit is aggregate turnover above Rs 5 crore in any financial year from 2017-18 onwards, applicable since 1 August 2023. We found no official change to it as of October 2026.
Is e-invoicing mandatory for B2C invoices?
No. E-invoicing (IRN generation) covers B2B supplies, exports and similar documents. Very large businesses have a separate requirement to show a dynamic QR code on B2C invoices.
What is the 30-day rule for e-invoices?
Since 1 April 2025, taxpayers with aggregate annual turnover of Rs 10 crore or more cannot report invoices, credit notes or debit notes to the IRP more than 30 days after the document date. The IRP rejects late submissions.
Does the 30-day rule apply if my turnover is Rs 7 crore?
According to GSTN’s advisory, there is no such reporting restriction for taxpayers below Rs 10 crore as of now. You must still e-invoice, and you should generate IRNs at the time of invoicing.
Can I cancel an e-invoice after 24 hours?
No. The IRP allows cancellation only within 24 hours of IRN generation. After that, issue a credit note or amend the details in GSTR-1 as permitted.
Is there a fee to use the e-invoice portal?
The NIC-run IRP is free. Private IRPs, GST Suvidha Providers and accounting software may charge for their services.
Your e-invoicing checklist for this month
Check your aggregate turnover for every year since 2017-18, register on an IRP, connect your billing software, and generate IRNs at the moment you invoice. If you are at or near Rs 10 crore, set an internal rule that no invoice goes out without an IRN the same day. GST notifications and GSTN advisories change, so confirm the current position on the official GST and e-invoice portals or with your chartered accountant before making changes.
