E-Invoicing Mandatory Threshold: Is Your Business Covered?

E-invoicing requires businesses above a specified aggregate turnover to generate invoices through the government's Invoice Registration Portal (IRP), which issues a unique Invoice Reference Number (IRN) and QR code before the invoice is considered valid for GST purposes. The threshold has been reduced in stages from ₹500 crore down to ₹5 crore, bringing a large number of mid-sized businesses into the mandate over the past few years, often without those businesses re-checking whether they've crossed it.

The consequence of not e-invoicing when required is not a minor formality — an invoice issued outside the e-invoicing system by a business that was required to use it is treated as an invalid document. This means the recipient cannot claim input tax credit on it, which quickly damages business relationships even if the underlying transaction and GST payment were entirely genuine.

Businesses often miss the threshold change because it's based on aggregate turnover in any preceding financial year from 2017-18 onward, not just the current year — meaning a business that had a single high-turnover year in the past may already be covered even if current turnover has since dropped, a detail that's easy to overlook.

If you're unsure whether your business has crossed the current e-invoicing threshold, or have been issuing invoices outside the system without realising the mandate applied, this is worth checking before it surfaces as a customer's credit denial or a departmental query. Our GST & Tax practice reviews e-invoicing applicability and helps businesses correct historical non-compliance.