What is the current e-invoice threshold in India?

As of August 1, 2023, e-invoicing is mandatory for all GST-registered businesses with annual aggregate turnover exceeding ₹5 crore in any previous financial year.

Who is exempt from e-invoicing in India?

Exempt from e-invoicing: banks, insurance companies, NBFCs, GTA (goods transport agencies), passenger transport services, multiplexes, SEZ units, government departments, and local authorities.

What happens if I don't generate e-invoice when required?

Non-compliance attracts penalty of ₹10,000 per invoice. The buyer cannot claim ITC on invoices without IRN (Invoice Reference Number). The invoice is considered invalid for GST purposes.

Can I generate e-invoice voluntarily if my turnover is below ₹5 crore?

Yes. Businesses with turnover below ₹5 crore can voluntarily opt for e-invoicing. This is beneficial if your buyers are large companies who prefer invoices with IRN.

E-Invoice Eligibility Checker

Not sure if e-invoicing applies to your business? It's simpler than most people think. Enter your annual turnover and we'll tell you instantly — and what to do next.

Annual Aggregate Turnover

₹Crore

Based on turnover in previous financial year

Business Sector (optional)

What is E-Invoicing and Why Was it Introduced?

E-invoicing (electronic invoicing) doesn't mean generating invoices using software. It specifically means getting your invoice authenticated by the government's Invoice Registration Portal (IRP) and receiving an IRN — Invoice Reference Number — before issuing it to your customer.

The government introduced this to stop fake invoice fraud. Before e-invoicing, businesses could generate fake purchase invoices to claim bogus ITC. Now, every B2B invoice above the threshold must pass through IRP, creating a real-time trail the department can verify.

For you as a business owner, the practical impact is: your billing software needs to be integrated with IRP, or you manually upload invoices before sharing with your buyer.

E-Invoice Threshold History

Effective From	Turnover Threshold	Status
Oct 2020	₹500 crore+	Superseded
Jan 2021	₹100 crore+	Superseded
Apr 2021	₹50 crore+	Superseded
Apr 2022	₹20 crore+	Superseded
Oct 2022	₹10 crore+	Superseded
Aug 2023	₹5 crore+	Current ✓

Who is Exempt from E-Invoicing?

Even if your turnover is above ₹5 crore, these businesses are exempt:

✗Banks, NBFCs, and Financial Institutions

✗Insurance companies

✗Goods Transport Agencies (GTA)

✗Passenger transportation services

✗Multiplex cinema operators

✗Special Economic Zone (SEZ) units

✗Government departments and local authorities

✗Persons registered under Section 51 (TDS deductors)

✗OIDAR service providers

Frequently Asked Questions

What is the current e-invoice threshold?▼

₹5 crore annual aggregate turnover, effective August 1, 2023. If your turnover exceeded ₹5 crore in any previous financial year, e-invoicing is mandatory now.

What happens if I skip e-invoicing?▼

Penalty of ₹10,000 per invoice. Your buyer cannot claim ITC. The invoice is invalid for GST purposes. Department can also initiate scrutiny action.

Does e-invoicing apply to B2C sales?▼

No. E-invoicing is mandatory only for B2B (business to business) transactions, exports, and SEZ supplies. B2C (end consumer) invoices are exempt from IRN requirement.

Which billing software supports e-invoicing?▼

Most popular billing software in India — Tally, Zoho Books, QuickBooks, Busy, Marg — support e-invoicing with IRP integration. You can also use the free e-invoice utility on gst.gov.in.

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