E-Invoice Limit FY 2026-27: Rs 5 Cr Now, and What Is Proposed

The e-invoice limit for FY 2026-27 is Rs 5 crore aggregate turnover, applying to B2B supplies, exports and a specified list of other document types, tested PAN-wide across every financial year since 2017-18. This is the same threshold that has applied since it was last lowered, and no notification currently in force sets a lower figure, whatever industry discussion suggests about the direction things are headed.

The confusion in this area usually comes from two places: the threshold's history of repeated reductions makes people assume the next cut is imminent or already in effect, and the PAN-wide, multi-year nature of the test surprises businesses that assume only their current year's turnover matters. This guide sets out the current figure precisely, how the test actually works, the history that explains why further reduction is a reasonable expectation, and what a business near the threshold should check now. For everything else about the mandate, see the e-invoicing guide.

The current limit: Rs 5 crore, PAN-based, any year since 2017-18

E-invoicing is mandatory for a taxpayer whose aggregate turnover has exceeded Rs 5 crore in any financial year from 2017-18 onward. Three details in that sentence matter more than the headline figure.

First, the test is PAN-based, not GSTIN-based. If a business holds multiple GST registrations under one PAN, for separate states or separate verticals, turnover across all of them is summed for this test, even if any single GSTIN's turnover looks small on its own.

Second, the test looks backward across every year since GST began, not just the current or previous financial year. A business that crossed Rs 5 crore once, three years ago, and has since scaled down, is still covered, because the rule is about having crossed the threshold at all, not about staying above it continuously.

Third, "aggregate turnover" has a specific GST meaning: it includes taxable supplies, exempt supplies, exports and inter-state supplies of a person with the same PAN, computed on an all-India basis, and excludes taxes charged under GST and a few specified exclusions such as inward supplies taxed under reverse charge. It is broader than what many businesses informally think of as "sales," so a business close to the line should compute this figure carefully rather than estimating.

What crossing the threshold actually requires

Once covered, a business must generate an IRN on the Invoice Registration Portal for its B2B tax invoices, exports and the other specified document types, before those documents are treated as valid for GST purposes in transactions with registered counterparties. The e-invoicing guide covers the generation process itself; the point here is that the obligation attaches to the business, not to an individual transaction, once the PAN-wide test is met.

Businesses that cross the threshold mid-year should also be aware of the 30-day IRP reporting rule, which applies separately at a higher turnover figure and restricts how long after the invoice date an IRN can still be generated. Crossing Rs 5 crore brings you into e-invoicing; crossing the separate, higher figure for the 30-day rule adds a further reporting deadline on top of that.

The threshold's history: a consistent direction

The figure has moved only one way since e-invoicing began, and knowing the pattern is useful context even though it does not predict an exact future date.

Each reduction was implemented through a specific GST Council decision followed by a CBIC notification with an effective date, never through informal announcement. That process is the only thing that would bring the threshold below Rs 5 crore, and as of this writing no such notification exists.

If your turnover is near Rs 5 crore

A business approaching the threshold should compute PAN-wide aggregate turnover carefully rather than relying on a single GSTIN's figures, check whether any prior financial year, even one that looks unrelated to current operations, already crossed Rs 5 crore, and confirm the applicable notified effective date once the threshold is crossed, since there is typically a short lead time before enforcement begins for newly covered taxpayers.

Multi-GSTIN businesses: the test most people underestimate

A business with, say, three GSTINs each turning over Rs 2 crore looks like it is well under any e-invoicing threshold if each registration is assessed on its own. Under the PAN-based test, that same business has Rs 6 crore of aggregate turnover and is already covered. This structure, common among businesses that registered separately by state for warehousing or logistics reasons, is the single most common way a business ends up covered by e-invoicing without realising it, since each individual team managing a GSTIN may only see their own numbers.

Checking aggregate turnover at the PAN level, not the GSTIN level, at least once a year, is the only reliable way to catch this before an unreported B2B invoice becomes a compliance problem for a customer trying to claim ITC against it.

A worked example of checking your own status

The rule is easy to state and, for a business with several years of filings and more than one GSTIN, genuinely fiddly to verify correctly. Walking through the check on a concrete example helps.

Say a business holds two GSTINs, one for its home state and one opened later for a warehouse in a neighbouring state. To check its e-invoicing status, it needs the aggregate turnover for each financial year since 2017-18, summed across both GSTINs for each year, not a single combined figure across all years at once. A business that had Rs 3 crore in one GSTIN and Rs 2.5 crore in the other during a single financial year has Rs 5.5 crore for that year, and that one year alone is enough to bring the business into e-invoicing for every year after it, even if turnover in both GSTINs later fell.

The practical source for this figure is the annual return filed for each year, GSTR-9, alongside the GSTR-3B summaries for months where a GSTR-9 was not required to be filed, since aggregate turnover is a specific computed figure rather than something read directly off a bank statement. Where a business has consistently used the same accounting or billing system across the years in question, that system's own reports are often the fastest way to reconstruct the yearly figures, provided the figures are checked against what was actually filed rather than assumed to match.

For a business opened more recently, with only one or two years of history, this check is quick. For an older business with several GSTINs and years of filings, it is worth doing once, thoroughly, and keeping the resulting summary on file rather than repeating the exercise from scratch whenever the question comes up, since the answer for past years does not change once computed correctly. Only the current year's figure needs updating going forward, and it needs checking against the same PAN-wide, all-supply-type definition used for every prior year, not a simplified estimate.

If the computation produces a result close to Rs 5 crore in any single year, treat that as a signal to confirm the figure with a GST practitioner rather than rounding down informally, since the cost of being wrong in the direction of assuming you are exempt is a business found non-compliant on B2B invoices it never routed through the IRP.

What crossing Rs 5 crore does not change

Crossing the e-invoicing threshold changes how your B2B invoices get validated; it does not automatically change anything else in your compliance calendar. GSTR-1 and GSTR-3B due dates stay the same. The e-way bill threshold of Rs 50,000 per consignment, covered in the e-way bill guide, is a separate rule tied to consignment value, not turnover. B2C invoicing is unaffected, since the current mandate covers B2B, exports and specified documents only, a distinction the guide to B2C e-invoicing status covers in full.

Businesses sometimes over-correct after crossing Rs 5 crore, assuming every part of their invoicing process now needs an overhaul. In practice, the change is narrower than it feels: B2B tax invoices need an IRN before they are complete, and everything else about how you already invoice, number your documents and file your returns continues unchanged.

Preparing before the threshold moves again

Given the consistent downward trend, a business currently below Rs 5 crore and growing steadily has a reasonable basis to expect eventual coverage, even without a specific date to plan around. The cheapest preparation is choosing billing software that already supports IRN generation, so turning it on when the threshold is crossed, or when your own turnover grows into the current figure, is a configuration change rather than a system migration.

myBillPlease generates e-invoices through the IRP alongside its standard invoicing, GSTR-1 preparation and e-way bill generation, so a business currently below the threshold can use the same system before and after crossing it, with nothing to switch.

Rs 5 crore is the number that matters today. The history behind it is useful for planning, not for compliance, and the only figure worth acting on is the one currently notified on the GST portal.