For the financial year 2025-26, the GST e-invoice generation threshold remains at an annual aggregate turnover (AATO) of over ₹5 crore in any preceding financial year since 2017-18. A key update for FY 25-26 is that businesses with an AATO of ₹10 crore or more must report invoices to the IRP within 30 days of the document date, effective 1 April 2025.
e-Invoice Time Limit: From April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of Rs.10 crore+ must upload e-invoices to the Invoice Registration Portal (IRP) within 30 days. It reduces the chances of fake GST invoices, allowing only genuine input tax credit claims.
As per the latest amendment in August 2023, all the businesses registered under the GST Act, with a total turnover exceeding Rs. 5 crores, are required to generate an e-invoice.
Who Needs to Register for GST in FY 2025–26? GST registration is compulsory for: Businesses with aggregate turnover exceeding ₹40 lakh for goods and ₹20 lakh for services. The above limit is for Normal Category states and turnover limit for special category states is ₹ 20 lakh for goods and ₹ 10 Lakh for services.
As such, w.e.f. 1 November 2023 onwards, the taxpayers with PAN based annual turnover equivalent to or exceeding INR 100 crores would not be permitted to generate IRN after 30 days from the date of the document i.e. tax invoice or debit/credit note, as the case may be.
The time limit for generating an e-invoice is 30 days from the date of invoicing. This update applies to all businesses with an AATO of more than Rs. 10 crore, since April 1, 2025.
As there is no federal mandate for e-Invoicing, there are currently no specific penalties for non-compliance. However, in states where e-Invoicing is required for B2G transactions, failure to comply could result in delays in payment or rejection of invoices.
Yes, e-invoicing is mandatory for businesses with a turnover exceeding ₹5 crore as per GST rules effective from August 1, 2023.
From the fiscal year 2025-26, the E-Invoice system would be applicable for businesses having an aggregate turnover exceeding ₹10 crores. All GST portal users shall have to apply Multi-Factor Authentication (MFA). From February 11, 2025, the formats of GSTR-7 and GSTR-8 will be updated.
Here's what you need to know about the relevant threshold and how it affects your business or enterprise. The GST threshold for 2025 is $75,000 in annual GST turnover for most businesses. If your GST turnover exceeds this amount in any rolling 12-month period, you must register for GST within 21 days.
Businesses with annual sales of Rs. 40 lakhs or more for goods, and Rs. 20 lakhs or more for services, must register for GST. If the turnover exceeds the allowed threshold, there is a penalty for failing to register under GST.
Under this law, large taxpayers and exporters were required to issue e-invoices and transmit sales data to the Bureau of Internal Revenue (BIR) within five years.
E-Invoice Exemption for Small Traders
The government has announced an exemption from e-invoice requirements for small traders with annual sales below RM150,000. This move benefits over 700,000 small traders, including hawkers, who will no longer need to issue e-invoices.
As per Section 23 of the CGST Act, every person is required to obtain the GST registration if his turnover from supply of goods or services exceeds Rs. 20 lakhs. This threshold limit has been increased to Rs. 40 lakhs only if supplier is engaged in supply of goods.
The e-invoice generation time limit defines the maximum period between the invoice date and the time it is reported on the Invoice Registration Portal (IRP) to generate an Invoice Reference Number (IRN). Under the current guidelines, users must upload invoices within 30 days from the invoice date.
How to Check Annual Turnover in GST Portal? . Click on "Search Taxpayer" and select "Search by GSTIN/UIN". Enter the GSTIN (GST Identification Number) of the business and the captcha code.
Key GST Compliance Rules FY 2025–26 (With Legal Backing)
Timely filing of returns (GSTR-1, GSTR-3B, GSTR-9): Delays can trigger cancellation under Rule 21A. Correct HSN Code usage: Mandatory for B2B invoices exceeding ₹50 lakh, per Notification No. 78/2020–Central Tax.
GST Rate and Slab Changes in September 2025
GST rate cuts on 200 items happened from 22nd September 2025. 90% of items in the current 28% slab are moved to the 18% slab. Almost 99% of the items in the 12% slab are moved to the 5% slab.
The total of lifetime gifts and the estate are eligible for a lifetime exemption, which is set at $13.99 million in 2025. The exemption amount is indexed for inflation, and was scheduled to be reduced by half after 2025. The higher exemption level was made permanent and slightly increased to $15 million in 2026 by P.L.
One of the biggest errors businesses make in freight e-invoicing is failing to validate invoice data before submission. Without proper validation, invoices may contain errors, missing data, or mismatched charges, leading to rejections by government tax portals or payment delays from clients.
Is e-invoicing mandatory in Canada ? While e-invoicing is legal and may be used, it is not required by law or otherwise mandatory.
Notification No. 10/2023, issued on May 10, 2023, amends the earlier Notification No. 13/2020–Central Tax from March 21, 2020. The GST e-invoice requirement now applies to businesses with a turnover exceeding ₹5 crore in any financial year since 2017-18, starting from August 1, 2023.
Section 16 of CGST Act 2017 states that a registered buyer cannot claim ITC unless he possesses a valid tax invoice or a debit note and such ITC appears as eligible one in GSTR-2B.
Non/Late Payment
A 5% penalty will be levied on the amount of tax unpaid by the due date and an additional penalty of 2% per month on tax remaining unpaid after 60 days from the due date of the prescribed accounting period (capped at a maximum of 50% of the outstanding tax) may also be imposed.
Types of e-invoice penalties
Penalty for failure to create an e-invoice: This penalty is applied if a company fails to generate an e-invoice for a taxable supply. The penalty is equal to either 100% of the tax owed on the supply or Rs. 10,000, whichever is greater.