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E-Invoicing Applicability & Turnover Thresholds (2026 GST Guide)

July 24, 202610 min readAkib Husain

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 PhaseTurnover Threshold (AATO)Effective Enforcement Date
Phase 1 & 2Exceeding ₹500 Cr / ₹100 CrOct 2020 / Jan 2021
Phase 3 & 4Exceeding ₹50 Cr / ₹20 CrApr 2021 / Apr 2022
Phase 5 & 6 (Current)Exceeding ₹10 Cr / ₹5 CrOct 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)

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Akib HusainExpert Reviewer

Founder & Chief Architect of TrulyInvoice

Last Verified: July 24, 2026
TallyPrime FY 2026-27 (v4.0+)
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