What is the e-invoicing turnover limit in 2026?

E-invoicing is mandatory for businesses with aggregate turnover above ₹5 crore in any financial year since 2017-18. This is the currently notified threshold.

Do B2C invoices require an IRN?

No. E-invoicing (IRN) applies to B2B invoices, exports and credit/debit notes. B2C invoices do not need an IRN, though very large taxpayers must show a dynamic QR code on them.

Is there a time limit to report an e-invoice?

Yes. Taxpayers with turnover of ₹10 crore or more must report invoices to the portal within 30 days of the invoice date, effective 1 April 2025. The portal rejects older invoices.

What is the penalty for not issuing an e-invoice?

A penalty of ₹10,000 per invoice (or 100% of the tax due, whichever is higher) applies for failure to issue an e-invoice, and ₹25,000 per invoice for an incorrect one.

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GST e-invoicing in 2026: who must issue one

E-invoicing is mandatory once your turnover crosses a threshold, and there is now a 30-day clock to report each invoice. Here is who it applies to, what is exempt, and the penalties for getting it wrong.

Updated 2026-05-30 · A reference guide from Ledgester

Key facts

E-invoicing is mandatory for businesses with aggregate turnover above ₹5 crore in any financial year since 2017-18.
It applies to B2B invoices, exports and credit/debit notes, not to B2C invoices.
Taxpayers with turnover of ₹10 crore or more must report invoices to the portal within 30 days of the invoice date (effective 1 April 2025).
An invoice without a valid IRN is not a legal invoice, and the buyer cannot claim ITC on it.

What is e-invoicing under GST?

E-invoicing does not mean generating an invoice on a government portal. You still create the invoice in your own software. The difference is that the invoice details are reported to a government Invoice Registration Portal (IRP), which validates them and returns a unique Invoice Reference Number (IRN) and a signed QR code. That IRN is what makes the invoice legally valid for e-invoicing-eligible businesses.

Who must issue e-invoices?

E-invoicing is mandatory for every business whose aggregate annual turnover exceeded ₹5 crore in any financial year from 2017-18 onwards. The threshold has been lowered in stages, from ₹500 crore in 2020 down to the current ₹5 crore.

Once you cross the threshold in any year, the obligation is permanent even if your turnover later falls below it.

A note on the ₹5 crore figure: ₹5 crore is the active, notified threshold. Proposals to lower it further have circulated, but no CBIC notification reducing it has taken effect, so ₹5 crore stands until the government formally notifies a change.

Which documents need an IRN?

Tax invoices for B2B supplies, supplies to SEZs, exports and deemed exports.
Credit notes and debit notes issued under Section 34.

B2C invoices do not require an IRN. (Businesses above ₹500 crore turnover must still display a dynamic QR code on B2C invoices, but that is a separate requirement.)

Who is exempt from e-invoicing?

Certain entities are exempt regardless of turnover:

Special Economic Zone (SEZ) units (though SEZ developers are not exempt)
Banks, insurance companies, financial institutions and NBFCs
Goods Transport Agencies (GTAs)
Passenger transport services
Admission to cinema / multiplex screenings
Government departments and local authorities

The 30-day reporting rule

Since 1 April 2025, taxpayers with an aggregate turnover of ₹10 crore or more must report each invoice to the IRP within 30 days of the invoice date. The portal rejects invoices older than 30 days, so back-dated reporting is no longer possible for these taxpayers. Smaller taxpayers should treat prompt reporting as best practice, as the window is expected to widen to more turnover bands over time.

Penalties for non-compliance

If you are required to issue an e-invoice and do not:

The document is not a valid invoice, so your buyer cannot claim ITC.
A penalty of ₹10,000 per invoice (or 100% of the tax due, whichever is higher) applies for not issuing an e-invoice.
An incorrect e-invoice attracts a penalty of ₹25,000 per invoice.

Frequently asked questions

What is the e-invoicing turnover limit in 2026?: E-invoicing is mandatory for businesses with aggregate turnover above ₹5 crore in any financial year since 2017-18. This is the currently notified threshold.
Do B2C invoices require an IRN?: No. E-invoicing (IRN) applies to B2B invoices, exports and credit/debit notes. B2C invoices do not need an IRN, though very large taxpayers must show a dynamic QR code on them.
Is there a time limit to report an e-invoice?: Yes. Taxpayers with turnover of ₹10 crore or more must report invoices to the portal within 30 days of the invoice date, effective 1 April 2025. The portal rejects older invoices.
What is the penalty for not issuing an e-invoice?: A penalty of ₹10,000 per invoice (or 100% of the tax due, whichever is higher) applies for failure to issue an e-invoice, and ₹25,000 per invoice for an incorrect one.

Try the E-invoice applicability checker → Open Ledgester →

This guide is general information, not professional tax advice, and GST rules change through CBIC notifications. Verify the current position for your situation or consult a qualified professional before acting.