E-invoicing limit: when GST e-invoices become mandatory
E-invoicing is mandatory for every GST-registered business whose aggregate turnover has crossed ₹5 crore in any financial year since 2017-18. Once you cross, it applies from the next financial year and does not switch off if turnover later falls.
Reviewed by Vijay Dhawan, Managing Partner, LexVerge LLP · Published
Quick answer
GST e-invoicing is mandatory for businesses whose aggregate turnover has exceeded ₹5 crore in any financial year since 2017-18, from the next financial year. Businesses with turnover of ₹10 crore or more must report invoices to the IRP within 30 days of the invoice date.
- Applies to B2B, exports and SEZ supplies
- Once applicable, it does not switch off
- Penalty: ₹10,000 per invoice or the tax due, if higher
Official source: GSTN e-invoice portal
The ₹5 crore test
- Aggregate turnover means turnover of all GSTINs under the same PAN, across India: taxable, exempt and export supplies plus inter-state stock transfers, excluding GST itself.
- Any financial year from 2017-18: if you crossed ₹5 crore in, say, FY 2022-23, you have been required to e-invoice since 1 April 2023, even if turnover fell to ₹3 crore since.
- Start date: from the first day of the financial year after the year you crossed.
| Date | Threshold |
|---|---|
| 1 October 2020 | ₹500 crore |
| 1 January 2021 | ₹100 crore |
| 1 April 2021 | ₹50 crore |
| 1 April 2022 | ₹20 crore |
| 1 October 2022 | ₹10 crore |
| 1 August 2023 to date | ₹5 crore |
Which documents need an IRN
E-invoicing covers B2B supplies, exports (including deemed exports), supplies to SEZs, and credit and debit notes against them. Each is reported to the Invoice Registration Portal (IRP), which returns an Invoice Reference Number (IRN) and a signed QR code that must be printed on the invoice. B2C invoices are outside e-invoicing, but businesses with turnover above ₹500 crore must print a dynamic QR code on B2C invoices.
An e-invoice also auto-populates GSTR-1 and, with vehicle details, generates the e-way bill; see our e-way bill guide.
The 30-day reporting limit
From 1 April 2025, businesses with aggregate turnover of ₹10 crore or more cannot report an invoice to the IRP more than 30 days after the invoice date. The portal simply refuses it, and the only remedy is issuing a fresh invoice with a current date. Businesses between ₹5 crore and ₹10 crore should still report at the time of invoicing, because an invoice without an IRN is not a valid tax invoice.
Who is exempt
- SEZ units (SEZ developers are not exempt)
- Insurers, banks and other financial institutions including NBFCs
- Goods transport agencies
- Passenger transport services
- Admission to cinema exhibitions
- Government departments and local authorities
An exemption covers the entity, not a product line, and must be claimed through the declaration on the portal where required.
What happens if you do not comply
| Failure | Consequence |
|---|---|
| Issuing a B2B invoice without an IRN when required | Invoice is not valid; the buyer can lose input tax credit |
| Penalty | Up to ₹10,000 per invoice, or tax due, whichever is higher; ₹25,000 for incorrect invoicing |
| Goods moving without a valid invoice | Detention and seizure of goods and vehicle |
| Buyer’s side | ITC on an invalid invoice can be reversed on scrutiny |
Large buyers increasingly refuse to pay suppliers who cross ₹5 crore but still send ordinary invoices. If you are close to the limit, set up e-invoicing before the new year starts; we do it for ₹5 crore-plus businesses through our e-invoicing setup service.
Getting ready before you cross
- Watch aggregate turnover across all GSTINs on the same PAN from April; the ₹5 crore test is on the combined figure.
- Choose the route: most accounting and billing software (Tally, Zoho, Busy and ERP systems) can generate IRNs through an API; small volumes can be keyed into the free offline tool or the IRP portal.
- Test on the sandbox before 1 April and fix master data: customer GSTINs, HSN codes and state codes are the usual causes of rejections. Our HSN code guide covers the reporting rules.
- Train the team that an invoice cannot be edited after IRN generation; mistakes are fixed by cancelling within 24 hours or issuing a credit note.
Frequently asked questions
What is the e-invoicing limit under GST?
Aggregate turnover above ₹5 crore in any financial year from 2017-18 onward. Once crossed, e-invoicing applies from the next financial year permanently.
Is e-invoicing required for B2C invoices?
No. E-invoicing applies to B2B supplies, exports and SEZ supplies. Businesses above ₹500 crore must print a dynamic QR code on B2C invoices.
What is the 30-day rule for e-invoicing?
From 1 April 2025, businesses with aggregate turnover of ₹10 crore or more cannot report invoices to the IRP more than 30 days after the invoice date.
Does e-invoicing stop if turnover falls below 5 crore?
No. The test is whether you crossed ₹5 crore in any financial year since 2017-18.
Crossed ₹5 crore this year?
FilingBase sets up e-invoicing on your billing software or the IRP portal before the new year starts.
Keep reading.
GSTR-2B explained
The auto-drafted ITC statement, the 14th-of-the-month cycle, IMS actions, and a reconciliation routine that works.
Read guide→GuideE-Way Bill in 2026: When It Is Needed, How to Generate One, Validity, the 180-Day Rule and the Penalty for Moving Goods Without It
The ₹50,000 threshold, Part A and Part B, one day per 200 km, the 180-day and 360-day limits, two-factor login, and the penalty if the truck is stopped without one.
Read guide→GuideGST Invoice Format: The Mandatory Fields Under Rule 46, a Sample Invoice, Time Limits, and the Mistakes That Cost Your Customer Their Credit
The particulars Rule 46 requires, a sample you can copy, when the invoice must be issued, e-invoicing thresholds, and the errors that block your customer’s credit.
Read guide→Official references
The statutory sources behind this page. We keep our guidance aligned to them — verify anything time-sensitive directly.
- Ministry of Corporate AffairsCompanies Act filings, forms and fee schedules
- Income Tax DepartmentReturns, forms, rates and e-filing utilities
- GST PortalRegistration, returns and rate notifications
Content on this page is reviewed by a chartered accountant or advocate at LexVerge LLP. It is general guidance, not advice on your specific facts.