E-Invoicing Under GST: Who Needs It and the Current Turnover Threshold
The Invoice Generator on this site produces a standard, correctly-fielded GST invoice, but for a growing number of businesses, a standard invoice isn't enough on its own anymore. Above a certain turnover, an invoice also needs to be registered with the government before it counts as valid. That's e-invoicing.
This covers the current threshold, exactly what's covered (and what isn't), the mistake people most often make confusing it with a different QR code rule, and what happens if you're above the threshold and not doing it.
Fact-check date on this article
The turnover threshold below is the single fastest-changing fact in GST compliance. It has been revised by government notification before and can be again. Everything here reflects the rules as they stand as of September 2026. If you're reading this later, confirm the current figure on the GST portal before relying on it.
What e-invoicing actually is
E-invoicing is the requirement to report certain invoices to the government's Invoice Registration Portal (IRP) before they count as valid, rather than simply issuing them directly to your customer. The IRP validates the invoice data, generates a unique 64-character Invoice Reference Number (IRN), and returns a digitally signed QR code that has to appear on the invoice you actually send.
It doesn't change what tax you owe or how you calculate it. It changes how the invoice itself gets validated before it's legally complete. The invoice still needs all the usual required fields underneath the IRN and QR code. See how to create a GST invoice for that list, and what are HSN and SAC codes for one of those fields specifically.
Below the ₹5 crore threshold, the Invoice Generator produces a standard, correctly-fielded GST invoice PDF. It doesn't connect to the IRP, so it doesn't issue an IRN. Once you're above the threshold, you need billing or accounting software that does.
Who needs it, and the threshold
As of September 2026, e-invoicing is mandatory for GST-registered businesses whose aggregate annual turnover has crossed ₹5 crore in any financial year since 2017-18, calculated PAN-wise, not per individual GST registration. Once you've crossed it, the obligation is treated as ongoing, even in a later year where turnover falls back below ₹5 crore.
What it covers, and doesn't
| Supply type | Covered? |
|---|---|
| B2B (business to registered business) | Yes |
| B2G (supplies to registered government entities) | Yes |
| Exports | Yes |
| Ordinary B2C consumer sales | No: separate rule, see below |
Not the same as the B2C QR code rule
It's easy to conflate this with a completely different provision: businesses with turnover above ₹500 crore must show a self-generated dynamic QR code on B2C invoices to make digital payment easier. That QR code has no IRN behind it, is generated by the business itself rather than the IRP, and follows a much higher turnover threshold aimed at very large consumer-facing businesses. It's a different rule with a similar-looking result, not a smaller version of e-invoicing.
Who's exempt
A handful of sectors are currently exempt from the e-invoicing mandate even above the threshold, including banks and other financial institutions, insurers, NBFCs, goods transport agencies, passenger transport services, and SEZ units. If you fall into one of these categories, confirm your specific exemption still applies rather than assuming it's permanent. Exemption lists are set by notification and can be narrowed.
The 30-day reporting rule
A separate, tighter rule applies once turnover reaches ₹10 crore or more: invoices, credit notes and debit notes must be reported to the IRP within 30 days of the document's date. Miss that window and the portal can refuse to generate the IRN at all for that document, not just delay it.
What happens if you should be e-invoicing and aren't
An invoice that should have gone through the IRP but didn't isn't treated as a valid tax invoice for a notified supply, which puts your buyer's input tax credit at risk on that document, not just yours. Beyond that, a general penalty provision under GST for documentation failures can apply, and goods moving without a valid, QR-coded invoice can be held up in transit checks. None of this is automatic or immediate on a single missed invoice, but it compounds the longer the underlying turnover crossing goes unaddressed.
Worked example
A B2B packaging manufacturer crosses ₹5.2 crore aggregate turnover partway through a financial year, the first time it has ever exceeded ₹5 crore in any year since GST began. From that point, every B2B and export invoice needs to go through the IRP before being sent to customers. The following year, a slower year brings turnover back down to ₹4.6 crore. The e-invoicing obligation still applies, because the ₹5 crore line was crossed once and that's treated as permanent going forward.
Illustrative figures to show how the "crossed once, applies forever" rule works. Confirm your own PAN-wise turnover history with your accountant rather than assuming a single year's figure settles the question.
Common mistakes
- Confusing e-invoicing with the B2C dynamic QR code rule. Different thresholds, different mechanics, different scope. See the section above before assuming either one applies (or doesn't) based on the other.
- Checking only the current year's turnover. One year crossing ₹5 crore, even years ago, is enough to trigger a permanent obligation. A currently-lower turnover doesn't exempt you if an earlier year crossed the line.
- Assuming a standard invoice PDF satisfies the requirement. Above the threshold, an invoice isn't complete without the IRP-issued IRN and QR code. A well-formatted invoice without them isn't a valid e-invoice.
- Missing the tighter 30-day reporting window at ₹10 crore turnover. The standard e-invoicing threshold and the 30-day reporting rule are two different turnover lines. Check both, not just the ₹5 crore figure.