E-Invoice Applicability

Thresholds and reporting windows have been tightened progressively and can change further. This article is for general information and does not constitute tax advice.

The Threshold: ₹5 Crore, and It’s Permanent Once Crossed

Mandatory for AATO above ₹5 crore since 1 August 2023, checked against any financial year from 2017-18 onwards, on a PAN-wide basis. Once crossed in any single year, it applies going forward permanently, even if turnover later falls back below ₹5 crore. Applies to B2B supplies and exports only, not B2C.

Who’s Exempt Regardless of Turnover

SEZ units, insurance companies, banking companies, NBFCs, Goods Transport Agencies by road, passenger transport service providers, and multiplex cinema admissions sit outside e-invoicing entirely.

The 30-Day Reporting Window, and What Happens Without a Valid IRN

Businesses with AATO of ₹10 crore or more must report invoices within 30 days of the invoice date since 1 April 2025; missing that window means the portal simply rejects the invoice, no IRN generated. An invoice that should have gone through but wasn’t is treated as invalid under Rule 48(4): ITC can’t be claimed on it, and the penalty for a missing e-invoice is ₹10,000 per invoice or 100% of the tax involved, whichever is higher. An e-invoice can be cancelled and reissued within 24 hours; beyond that, corrections go through credit/debit notes.