GST E-Invoicing: Who Needs It and the Current Turnover Threshold

What is GST E-Invoicing?

E-invoicing does not mean generating an invoice on the government portal. You still create the invoice in your own software, but 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. Only after this is the invoice considered legally valid for covered businesses.

Who Needs to Generate E-Invoices?

E-invoicing is mandatory for registered businesses whose aggregate annual turnover exceeds ₹5 crore in any financial year since 2017-18. It applies to:

• B2B invoices (supplies to other registered businesses).
• Exports and supplies to SEZ units.
• Credit notes and debit notes linked to those supplies.

It does not apply to B2C invoices, although large taxpayers must still display a separate dynamic QR code on B2C invoices.

Who is Exempt?

Regardless of turnover, certain categories are exempt, including banks and NBFCs, insurers, Goods Transport Agencies (GTA), passenger transport services, and cinema/multiplex admission services.

Why It Matters

If e-invoicing applies to you and an invoice has no valid IRN, your customer can be denied Input Tax Credit on it. Always confirm your current turnover status, as thresholds are revised periodically by the government.

Note: GST thresholds and rules change over time. Verify the latest limits on the official GST portal before relying on them.