Compliance guide
GST e-invoicing rules,
explained for 2026.
Who has to do it, what the deadlines are, and what it costs you if you get it wrong.
This is general information, not tax advice — always confirm your specific obligations with your CA or the official GST portal.
Who needs to e-invoice in 2026?
E-invoicing is mandatory for GST-registered businesses whose aggregate annual turnover (AATO) has crossed ₹5 crore in any financial year since 2017-18, under Notification No. 10/2023-Central Tax (effective 1 August 2023). Once you've crossed that threshold even once, the requirement applies going forward — even if your turnover later drops below ₹5 crore. Turnover is calculated PAN-wide, across every GSTIN registered under the same PAN, not per outlet or per state registration.
What counts as an e-invoice?
An e-invoice isn't a different invoice format — it's your normal B2B invoice, authenticated in real time by the government's Invoice Registration Portal (IRP), which returns an Invoice Reference Number (IRN) and QR code. Without a valid IRN, the invoice isn't considered valid under GST law, which means the buyer can't claim input tax credit on it.
The 30-day reporting rule
Since April 1, 2025, businesses with an AATO of ₹10 crore or more must report their e-invoices to the IRP within 30 days of the invoice date, or the invoice is rejected. Businesses between ₹5–10 crore don't face this specific 30-day cutoff yet, but reporting invoices close to real time is best practice regardless.
What it doesn't cover
E-invoicing currently applies to B2B transactions only — B2C sales to end consumers don't require IRN generation. A small number of sectors are exempt even above the threshold, including banks, insurers, NBFCs, goods transport agencies, passenger transport operators, and SEZ units — check the current exemption list for your sector specifically.
What happens if you don't comply
An invoice without a valid IRN isn't a valid tax invoice — your buyer can't claim ITC on it, which can damage the relationship as much as it damages your compliance record. Penalties apply per non-compliant invoice, and cancellation on the IRP is only possible within 24 hours of IRN generation; after that you need a credit note to reverse it.
Should you prepare even if you're under ₹5 crore?
The threshold has been lowered several times since e-invoicing launched in 2020, and a further reduction (to ₹2–3 crore) has been discussed at GST Council sessions without being finalized as of 2026. If you're approaching ₹5 crore, it's worth having e-invoicing-ready billing software in place before you're legally required to, rather than scrambling once you cross the line.
CRM Force's GST billing is built to generate compliant invoices from day one, whether or not you're currently above the e-invoicing threshold — so you're not migrating systems later when you cross it.