The GST e-invoice limit is aggregate turnover above ₹5 crore. In general, e-invoicing applies to a registered person whose PAN-based aggregate turnover crossed ₹5 crore in any preceding financial year from 2017–18 onwards, subject to the notified exclusions. It is not triggered merely because a GSTIN appears as “enabled” on an Invoice Registration Portal (IRP).
The threshold is tested across registrations under the same PAN. If a business first crosses it in one financial year, the GSTN FAQ says the requirement starts from the beginning of the next financial year. This guide explains the threshold, the invoice types in scope, important exemptions, and how to check your position for 2026.
What is GST e-invoicing?
E-invoicing is a reporting and validation step for specified invoices. A covered business prepares its invoice in its own billing or accounting system and reports the required data to an authorised IRP. The IRP returns an Invoice Reference Number (IRN) and a signed QR code. The supplier then issues the invoice with those details to the buyer.
The IRP does not create the commercial invoice for the business. Taxzentic’s GST Invoice Draft Generator can help prepare a draft, but it does not report invoice data to an IRP or generate a government IRN.
GST e-invoice threshold for 2026
| Check | How the rule works |
|---|---|
| Turnover limit | More than ₹5 crore aggregate turnover |
| Turnover basis | Aggregate turnover under the common PAN across GST registrations |
| Years checked | Any preceding financial year from 2017–18 onwards |
| First crossing in the current FY | Requirement generally begins on 1 April of the next FY |
| Output from IRP | IRN and signed QR code for covered documents |
Example: A company has GST registrations in three states. If their combined PAN-level aggregate turnover exceeded ₹5 crore in FY 2025–26, the relevant threshold condition is met for FY 2026–27, subject to entity and supply exclusions. Looking only at one state GSTIN’s turnover could give the wrong answer.
Aggregate turnover is a defined GST term; it is not simply the sales figure of one branch or one GSTIN. Check the entity’s turnover records and applicable GST registrations before relying on the threshold. Our E-Invoice Eligibility Checker can help organise the threshold and sector checks, but it is a self-assessment aid rather than a government determination.
Which invoices are generally covered?
For a notified person, the e-invoice framework generally covers tax invoices, credit notes, and debit notes for specified supplies, including supplies to registered buyers and export-related supplies. The GSTN FAQ says B2C invoices to unregistered retail consumers are not reported as e-invoices under the current framework. E-invoicing also does not replace an e-way bill where transport rules separately require one.
Check the exact document, transaction, and recipient type in the current notification and GSTN FAQ. “The business crossed the limit” and “this particular document needs an IRN” are related questions, but not always the same question.
Who is exempt from e-invoicing?
The GSTN e-invoicing FAQ lists entity or sector exclusions such as:
- Special Economic Zone (SEZ) units; an SEZ developer is not automatically covered by the unit exemption.
- Insurers, banking companies, and financial institutions, including NBFCs.
- A Goods Transport Agency supplying services for transport of goods by road in a goods carriage.
- Suppliers of passenger transportation services.
- Suppliers of admission to exhibition of cinematograph films in multiplex screens.
- Persons registered under Rule 14 for online information and database access or retrieval services (OIDAR).
- Government departments and local authorities, as provided by the relevant notification.
The exemption is tied to the specified entity category, not a blanket exemption for every transaction involving that sector. For example, the GSTN FAQ distinguishes an SEZ unit from an SEZ developer. Government departments and local authorities may be exempt when they are the supplier, but a supplier does not become exempt merely because its buyer is a government department registered only to deduct GST TDS. Confirm the exact legal entity and current notification before treating an exemption as applicable.
Is an IRP “enabled” status proof that I must issue e-invoices?
No. GSTN says enablement on the portal is a facilitation status and is not, by itself, proof that the taxpayer is legally required to issue e-invoices. The portal’s list can include entities that are exempt or do not meet all conditions. The taxpayer must check the turnover, entity category, and current rules; a buyer should also verify its supplier’s position where relevant.
A practical applicability checklist
- Combine turnover under the PAN. Review every GSTIN belonging to the legal entity.
- Check each preceding financial year from 2017–18. The relevant test is whether the prescribed threshold was exceeded in any one of those years, not only the current year.
- Identify the effective financial year. If the first crossing occurs in the current FY, check the start of the next FY for applicability.
- Confirm entity exclusions. Match the legal entity and activity to the current Rule 48(4), Rule 54, and notification provisions.
- Check the document and supply type. Confirm whether the document and recipient fall within the e-invoice framework.
- Keep evidence. Retain turnover workings, exemption support, and the invoice reporting acknowledgement.
For invoice fields and format, see our GST invoice format guide. Use the checker as a preliminary review, then verify your position against the GSTN e-invoicing FAQs and the official notification setting the ₹5 crore threshold.
GST e-invoice limit FAQs
Is the e-invoice threshold ₹5 crore or ₹10 crore in 2026?
The current notified threshold is more than ₹5 crore. ₹10 crore was the earlier threshold effective from 1 October 2022; the threshold later changed to ₹5 crore from 1 August 2023. Check subsequent official notifications before relying on any summary.
Is the ₹5 crore limit checked GSTIN-wise?
No. The turnover condition is based on aggregate turnover under the common PAN. Turnover across the entity’s GST registrations must be considered.
If turnover crosses ₹5 crore this year, does e-invoicing start immediately?
The GSTN FAQ says that when the threshold is crossed during the current financial year, e-invoicing starts from the beginning of the next financial year, subject to the other conditions and exclusions.
Do small B2C invoices need an IRN?
GSTN’s FAQ says reporting B2C invoices to IRP is not applicable under the current e-invoice framework. Other invoice and QR-code rules may still apply depending on the supplier and transaction.
Does an e-invoice checker generate an IRN?
No. Taxzentic’s checker is a preliminary eligibility aid. An IRN must be generated through an authorised IRP or an eligible system connected to one.
Are SEZ developers exempt?
The GSTN FAQ states that the specific exemption applies to SEZ units, not SEZ developers. A developer must test its own turnover and other conditions.
Official references
- GSTN e-invoicing FAQs
- GSTN e-invoice brochure: applicability and threshold
- Notification 10/2023–Central Tax: ₹5 crore threshold from 1 August 2023
- CBIC Circular 198/10/2023-GST: supplies to government TDS deductors
This article is general information, not a determination of e-invoice applicability for a particular PAN or GSTIN. Verify current notifications and facts with a qualified GST professional before issuing tax documents.