E-Invoicing Applicability & Turnover Thresholds (2026 GST Guide)
E-Invoicing Applicability & Turnover Thresholds (2026 GST Guide)
Complete guide on GST e-invoicing applicability, ₹5 Cr turnover threshold, 30-day reporting window, exempt entities, and Tally Prime setup.
Who is this for: GST & Tax Compliance
Quick Summary: Who Is Mandated to Generate E-Invoices under GST?
E-invoicing (IRN & QR code generation) is mandatory for all registered businesses with PAN-India turnover > ₹5 Crores in any financial year from 2017-18 onwards. It covers B2B, Exports, B2G, and SEZ supplies. Taxpayers with AATO >= ₹10 Cr must report invoices to IRP within 30 days of invoice date.
- Turnover Mandate: Aggregate Annual Turnover (AATO) > ₹5.00 Crores (PAN-wide).
- Rule of Persistence: 'Once Applicable, Always Applicable' rule governs e-invoices.
- 30-Day Limit: Mandatory 30-day IRP reporting cutoff for AATO >= ₹10 Crores.
- Invalid Without IRN: Invoices missing IRN/QR code are legally invalid under Section 122.
1. E-Invoicing Turnover Threshold Phase Matrix
The government phased in e-invoicing starting at ₹500 Cr down to the current ₹5 Cr mandate:
| Implementation Phase | Turnover Threshold (AATO) | Effective Enforcement Date |
|---|---|---|
| Phase 1 & 2 | Exceeding ₹500 Cr / ₹100 Cr | Oct 2020 / Jan 2021 |
| Phase 3 & 4 | Exceeding ₹50 Cr / ₹20 Cr | Apr 2021 / Apr 2022 |
| Phase 5 & 6 (Current) | Exceeding ₹10 Cr / ₹5 Cr | Oct 2022 / Aug 2023 (Mandatory 2026) |
2. List of Exempt Entities & Self-Declaration
The following sectors are exempt from generating e-invoices, regardless of turnover:
- Banking Companies, Financial Institutions & NBFCs
- Insurance Companies
- Goods Transport Agencies (GTAs) supplying goods transport by road
- Passenger Transport Service Providers
- Multiplex Cinema Admission Ticket Issuers
- SEZ Units (Note: SEZ Developers are NOT exempt)
Automate Purchase Invoice Booking in Tally Prime
Ensure incoming supplier e-invoices match purchase vouchers 100%.
Data entry mistakes in vendor purchase bills (typing wrong IRNs or HSN rates) disrupt Tally Prime's automated e-invoice verification and GSTR-2B matching.
Founder & Chief Architect of TrulyInvoice