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Find out if your business must generate e-invoices (IRNs) under GST. Current threshold: ₹5 Cr (CBIC Notification 10/2023).
E-invoice applicability in GST decides which businesses must report their B2B invoices to the Invoice Registration Portal (IRP) and obtain an Invoice Reference Number (IRN) before issuing them to customers.
E-invoicing does not mean the government generates your invoices. You keep raising invoices in your own accounting software, ERP, or billing platform. But for notified businesses, every B2B invoice must first be authenticated by the IRP. The IRP validates the invoice data and returns an IRN with a digitally signed QR code. Once validated, the invoice becomes a legally compliant e-invoice under GST. An invoice issued without a valid IRN is treated as an invalid document under Rule 48(4) of the CGST Rules.
E-invoice applicability is determined by three factors working together: your turnover, your type of supply, and whether your business falls under a notified exemption category. Turnover is the primary trigger, but supply type and exemption status matter just as much, because not every business crossing the turnover threshold has to generate e-invoices. Businesses making B2B supplies and exports usually fall within scope, while pure B2C businesses do not.
E-invoicing applies based on aggregate annual turnover (AATO) in any financial year from 2017-18 onwards. Once you cross a threshold, e-invoicing applies from the notified date and stays applicable even if turnover later drops below it.
| Aggregate annual turnover | E-invoicing applicable from |
|---|---|
| Above ₹500 crore | 01 October 2020 |
| ₹100 crore to ₹500 crore | 01 January 2021 |
| ₹50 crore to ₹100 crore | 01 April 2021 |
| ₹20 crore to ₹50 crore | 01 April 2022 |
| ₹10 crore to ₹20 crore | 01 October 2022 |
| ₹5 crore to ₹10 crore | 01 August 2023 |
| Less than ₹5 crore | Optional (not mandatory) |
The e-invoice limit is the turnover threshold above which generating an IRN becomes mandatory. As of FY 2026-27, the e-invoice limit in GST is ₹5 crore aggregate annual turnover. This is the current e invoice mandatory limit, in force since 1 August 2023.
This e-invoice turnover limit has been lowered in stages since 2020. When e-invoicing was first introduced, it applied only to businesses with turnover above ₹500 crore. Today the e-invoice threshold limit is ₹5 crore, the lowest so far, which brings a large number of mid-sized businesses into scope.
There is no GST e-invoice limit for businesses below ₹5 crore. For them, e-invoicing remains optional.
One point matters most here. The e-invoice limit is tested using aggregate annual turnover at the PAN level, so turnover across all GSTINs linked to the same PAN is added together. The test also covers any financial year since 2017-18, not only the most recent one.
Enter your details and get an instant verdict based on the latest GST rules.
Input your aggregate annual turnover (PAN-level, across all GSTINs) for the highest-turnover financial year since 2017-18.
Tell us whether you make B2B supplies or exports. E-invoicing does not apply to pure B2C businesses.
Select your entity type so we can flag notified exemptions such as banks, GTA, SEZ units, and government entities.
See instantly whether e-invoicing is Applicable, Optional, or Not Applicable, along with the exact date it applies from.
The applicability of e invoice in your case depends on three conditions. Your business must issue e-invoices if all three are met:
Your aggregate annual turnover exceeded ₹5 crore in any financial year from 2017-18 onwards. This is calculated PAN-wise, so the turnover of all GSTINs under the same PAN is combined.
You make B2B supplies, supplies to government (B2G), exports, or supplies to SEZ. Pure B2C sales do not attract e-invoicing.
Your business does not fall under a notified exemption category (listed below).
In short, e-invoicing becomes mandatory only when the turnover threshold is crossed, the relevant supply types are involved, and no exemption applies.
Many businesses wrongly check turnover GSTIN-wise. GST law requires the test at the PAN level, so add up all GSTINs under the same PAN before deciding whether the threshold is crossed.
If turnover crossed ₹5 crore in even one past year, e-invoicing stays applicable in all later years. For example, if your business crossed ₹5 crore in FY 2021-22 but turnover later fell to ₹4 crore, e-invoicing would still apply.
If your turnover was below the threshold last year but crosses it during the current year, e-invoicing applies from the start of the next financial year. So it helps to track turnover regularly and prepare before the new year begins.
Use this table to see exactly when e invoice is applicable to your business. The e invoice criteria combine turnover, supply type, and exemption status.
| Your situation | E-invoice status |
|---|---|
| AATO above ₹5 crore + B2B/export supplies + not exempt | Mandatory |
| AATO above ₹5 crore but only B2C supplies | Not applicable (B2C exempt) |
| AATO above ₹5 crore but notified exempt entity | Not applicable |
| AATO below ₹5 crore | Optional |
| Crossed ₹5 crore mid-year | Mandatory from next FY |
The table shows one important thing. Crossing the turnover threshold alone does not automatically mean e-invoicing applies. You also have to consider your supply type and whether any exemption covers your business.
The following businesses are exempt from e-invoicing regardless of turnover. Even if they cross the threshold, they do not have to generate IRNs.
Even when e-invoicing applies to a business, some transactions and documents do not need an IRN.
Exempt transactions: B2C sales, nil-rated supplies, non-taxable supplies, exempt supplies, imports, high sea sales, bonded warehouse sales, and supplies under reverse charge covered by Section 9(4).
Exempt documents: Delivery challans, bills of supply, bills of entry, and ISD invoices.
Documents covered: Only tax invoices, debit notes, and credit notes require e-invoicing. So check both the transaction type and the document type before deciding whether an IRN is needed.
E-invoicing comes with a reporting deadline, but it does not apply to everyone. As per the GSTN advisory effective 1 April 2025, businesses with AATO of ₹10 crore and above must report e-invoices to the IRP within 30 days of the invoice date. Businesses below ₹10 crore are not covered by this 30-day rule for now.
Where the rule applies, you cannot backdate an IRN or generate one after the 30-day window closes. An invoice not reported in time cannot be validated, so the recipient loses the ability to claim Input Tax Credit (ITC) on it.
If you fall in this bracket, report invoices promptly rather than waiting for month-end reconciliation. Timely reporting avoids compliance issues, customer disputes, and ITC problems.
If e-invoicing applies to your business and you fail to comply, penalties may apply under Section 122 of the CGST Act.
| Violation | Penalty |
|---|---|
| Invoice without valid IRN | Up to ₹10,000 or 100% of tax (whichever is higher) |
| Incorrect e-invoice | ₹25,000 per invoice |
| Recipient impact | No ITC available on invalid invoices |
An invoice issued without an IRN by a notified taxpayer is legally treated as not issued. This creates risk for both sides. The supplier may face penalties and audit disputes, and the recipient may lose ITC on the transaction. So every applicable invoice should be reported correctly and on time.
Determines applicability using the ₹5 crore aggregate turnover rule across all financial years, following the historical thresholds notified under GST.
Flags whether your entity type (bank, GTA, SEZ, government, etc.) is exempt, so you do not draw the wrong conclusion from turnover alone.
Accounts for the B2B vs B2C distinction, so B2C-only businesses get the correct "Not Applicable" result.
Tells you the exact date e-invoicing became mandatory for your turnover bracket.
Highlights the 30-day IRP reporting deadline for businesses above ₹10 crore.
Handles the "any year since 2017-18" rule and the next-FY trigger for mid-year crossings.
E-invoicing is mandatory for businesses with aggregate annual turnover above ₹5 crore in any financial year from 2017-18 onwards. This limit has been in effect since 1 August 2023. Businesses below ₹5 crore may generate e-invoices voluntarily but are not required to.
No. E-invoicing is not mandatory below ₹5 crore aggregate annual turnover. Such businesses can opt in voluntarily, but there is no legal requirement to generate IRNs.
It is calculated as aggregate annual turnover at the PAN level, so the turnover of all GSTINs under the same PAN is added together. If the combined turnover crossed ₹5 crore in any financial year since 2017-18, e-invoicing applies.
If your turnover was below the threshold last year but exceeds ₹5 crore in the current year, e-invoicing becomes mandatory from the start of the next financial year. Prepare your systems before the new year begins.
No. E-invoicing applies only to B2B supplies, B2G, exports, and supplies to SEZ. B2C sales are excluded, though some large taxpayers must display a dynamic QR code on B2C invoices under separate rules.
Banks, NBFCs, financial institutions, insurers, Goods Transport Agencies, passenger transport providers, cinema and multiplex admission services, SEZ units, government departments, local authorities, and OIDAR providers are exempt regardless of turnover.
No. SEZ units are exempt under CBIC Notification No. 61/2020. However, SEZ developers and suppliers making supplies to SEZ units must still issue e-invoices if they otherwise meet the turnover conditions.
Businesses with AATO of ₹10 crore and above must report e-invoices to the IRP within 30 days of the invoice date, effective 1 April 2025. Businesses below ₹10 crore are not covered by this rule for now. Where it applies, an invoice not reported in time cannot be validated, and the recipient cannot claim ITC on it.
An invoice without a valid IRN can attract a penalty of up to ₹10,000 or 100% of the tax, whichever is higher. An incorrect e-invoice can attract ₹25,000. The recipient may also lose ITC on the invoice.
Yes. Once e-invoicing applies because turnover crossed ₹5 crore in any year, it generally continues in later years even if turnover falls below the threshold. Do not assume reduced turnover removes the obligation.
Check enablement status on the e-invoice portal under Search, then e-Invoice Status of Taxpayer. But enablement status is only a facilitation feature. It does not decide your legal obligation, which is governed by Rule 48(4) and depends on your turnover, supply type, and exemption status.
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