What is the e-invoice limit in 2026?

E-invoicing under GST is mandatory for any business whose aggregate annual turnover crossed ₹5 crore in any financial year from 2017-18 onwards (CBIC Notification 10/2023-Central Tax, effective 1 August 2023).

How is turnover calculated for the e-invoice limit?

On aggregate annual turnover — PAN-India turnover across all GSTINs of the same legal entity, including taxable, exempt, export and inter-state supplies, net of taxes. It is not state-wise turnover.

Who is exempt from e-invoicing regardless of turnover?

Banks and financial institutions, NBFCs, insurers, goods transport agencies, passenger-transport operators, cinema admission suppliers, and SEZ units are exempt irrespective of turnover. B2C supplies are also outside the e-invoicing mandate.

Does the e-invoice limit apply to B2C invoices?

No. The e-invoicing (IRN) mandate covers B2B supplies, exports and supplies to SEZ. A separate rule requires a dynamic QR code on B2C invoices for businesses above ₹5 crore turnover.

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E-INVOICE LIMIT

E-invoice limit: who must generate e-invoices in India

Q: If my turnover drops below ₹5 crore, does e-invoicing stop?

No. Once you cross the ₹5 crore limit in any financial year, e-invoicing applies from the next financial year and continues even if your turnover later falls below ₹5 crore.

Q: What is the 30-day e-invoice reporting limit?

Businesses with an aggregate annual turnover of ₹10 crore or more cannot report an invoice, credit note, or debit note to the IRP if it is older than 30 days from its document date, effective 1 April 2025.

E-invoicing under GST is mandatory once your aggregate annual turnover crosses ₹5 crore in any financial year from 2017-18 onwards. This is the threshold reference — the turnover ladder by year, the ₹10 crore 30-day reporting rule, and the exemptions — kept current with the CBIC notifications.

How ReadyBooks.ai keeps you on the right side of the limit

The threshold is a moving target. ReadyBooks.ai tracks your turnover and switches e-invoicing on at the right time — you never miss the cut-over.

Turnover-aware e-invoicing

ReadyBooks.ai watches your PAN-level aggregate turnover across all your GSTINs. When you cross ₹5 crore in any year, the e-invoicing flow is ready to switch on from the next financial year — no manual tracking of where you stand against the limit.

Aggregate turnover, computed correctly

"Aggregate turnover" is PAN-India turnover across every GSTIN of the same legal entity — not state-wise. ReadyBooks.ai consolidates turnover across your registrations so the threshold test is applied the way the law defines it.

30-day reporting guardrail (₹10 cr+)

Businesses with AATO ₹10 crore or more cannot report an invoice, credit note, or debit note to the IRP older than 30 days. ReadyBooks.ai flags documents approaching the 30-day window so an IRN is never blocked for being late.

Once in, always in

If you cross ₹5 crore in any one year, e-invoicing applies from the next financial year and continues even if turnover later drops below ₹5 crore. ReadyBooks.ai keeps e-invoicing on once the obligation is triggered — it never quietly switches it off.

B2B-only scoping

E-invoicing applies to B2B supplies, exports, and supplies to SEZ — not B2C. ReadyBooks.ai routes each invoice correctly: B2B gets the IRN flow, B2C gets the dynamic QR code where the separate B2C-QR rule applies.

Exemption handling

Specified classes — banks, NBFCs, insurers, GTAs, passenger-transport, cinema, SEZ units — are exempt regardless of turnover. ReadyBooks.ai respects the exemption list so an exempt entity is not pushed into e-invoicing it does not owe.

Why the limit matters for your books

Crossing the threshold changes how every B2B invoice must be issued.

The threshold has only ever gone down

From ₹500 crore in 2020 to ₹5 crore in 2023 — six cuts in under three years. Any business above ₹3 crore should plan for e-invoicing as a matter of when, not if.

Buyer ITC depends on a valid IRN

Once you are above the limit, a B2B invoice without an IRN is not valid for your buyer to claim input tax credit. Missing the threshold cut-over costs your customers money — and your relationship with them.

Penalty exposure under Section 122

Issuing a non-compliant invoice when e-invoicing applies can attract penalty under Section 122 of the CGST Act. The threshold is not a soft guideline — it is the trigger for a statutory obligation.

No add-on, no separate module

On ReadyBooks.ai e-invoicing is part of the core invoice flow on the paid plans — there is no premium e-invoicing add-on to license the day you cross the limit.

What "aggregate turnover" actually means

The e-invoicing limit is tested on aggregate annual turnover, computed PAN-India across all GSTINs of the same legal entity — taxable supplies, exempt supplies, exports, and inter-state supplies all count, net of taxes. It is not your state-wise turnover and not your taxable turnover alone. A business with three GSTINs each turning over ₹2 crore has an aggregate turnover of ₹6 crore and is above the ₹5 crore e-invoicing limit.

The test looks back at any financial year from 2017-18 onwards. Cross the threshold in any one of those years and the obligation begins from the start of the next financial year — and it sticks even if a later year falls below the line. ReadyBooks.ai applies exactly this rule when it decides whether your B2B invoices need an IRN.

E-invoice turnover threshold by phase

When e-invoicing became mandatory, by aggregate turnover (CBIC notifications)
Aggregate turnover (in any FY from 2017-18)	Mandatory from	CBIC notification
Above ₹500 crore	1 October 2020	13/2020-CT (21 Mar 2020)
Above ₹100 crore	1 January 2021	88/2020-CT (10 Nov 2020)
Above ₹50 crore	1 April 2021	05/2021-CT (08 Mar 2021)
Above ₹20 crore	1 April 2022	01/2022-CT (24 Feb 2022)
Above ₹10 crore	1 October 2022	17/2022-CT (01 Aug 2022)
Above ₹5 crore (current)	1 August 2023	10/2023-CT (10 May 2023)

Source: CBIC Central Tax notifications under Rule 48(4), CGST Rules 2017. Current e-invoicing limit: aggregate turnover above ₹5 crore in any FY since 2017-18.

30-day IRP reporting limit

30-day reporting window for reporting documents to the IRP
Aggregate turnover (AATO)	Reporting window	Effective from
₹10 crore and above	IRN must be generated within 30 days of the document date	1 April 2025
Below ₹10 crore	No 30-day reporting limit (as of this update)	—

Source: GSTN advisory dated 5 November 2024 — 30-day IRP reporting limit lowered to AATO ₹10 crore and above with effect from 1 April 2025.

Frequently asked questions

Once you are above the limit

E-invoice (IRN) generator →GSTR-1 filing software →E-way bill software →

Above the e-invoice limit? Generate IRNs automatically.

ReadyBooks.ai builds e-invoicing into every B2B invoice the moment you cross the threshold — IRN + QR from the official IRP in seconds. Start free, no credit card.