E-invoice applicability turns on one number: if your aggregate turnover went above ₹5 crore in any financial year since 2017-18, every B2B invoice and export invoice needs an Invoice Reference Number (IRN) from the Invoice Registration Portal, unless your business is in an exempt class such as banks, goods transport agencies or SEZ units. The e-way bill limit is a separate test, ₹50,000 of consignment value including GST, for goods on the move. This guide explains when each rule starts, with worked examples, what the driver must carry, and which 2026 changes are only proposals.
When does e-invoicing start for your business?
E-invoicing applies from the financial year after the first year your aggregate turnover exceeded ₹5 crore, because the test is turnover "in any preceding financial year from 2017-18 onwards". Once you are in, a later dip below ₹5 crore does not take you out.
The ₹5 crore limit has applied since 1 August 2023 (Notification 10/2023-Central Tax), and the "any preceding year" wording and the inclusion of exports come from Notification 70/2020-Central Tax.
Example. Bluepeak Foods Private Limited, a made-up company, had aggregate turnover of ₹4.6 crore in 2024-25 and ₹5.3 crore in 2025-26. E-invoicing applies to its B2B invoices, exports, credit notes and debit notes from 1 April 2026. If turnover falls to ₹4.8 crore in 2026-27, it still applies, because 2025-26 remains a preceding year above ₹5 crore. The checker above shows e-invoicing as required for ₹5.3 crore and B2B invoices, without the 30-day limit, which starts at ₹10 crore.
What an e-invoice is, and what happens without one
An e-invoice is a normal tax invoice whose details are uploaded to the Invoice Registration Portal to get an IRN before it is issued (rule 48(4) of the CGST Rules). For a business covered by e-invoicing, an invoice issued any other way "shall not be treated as an invoice" (rule 48(5)), which puts your buyer's input tax credit at risk.
The IRN also helps with the e-way bill. Part A of the e-way bill is filled in from the e-invoice details, and the driver can show the QR code with the embedded IRN on a phone instead of a paper invoice (rule 138A(2) and (3)).
- B2C invoices do not need an IRN. Separately, a business with aggregate turnover above ₹500 crore must print a dynamic QR code on B2C invoices (Notification 14/2020-Central Tax).
- The 30-day limit. From 1 April 2025, if your annual aggregate turnover is ₹10 crore or more, the portal rejects an invoice, credit note or debit note that is older than 30 days when reported. An invoice dated 1 September 2026 cannot be reported after 30 September 2026.
When is an e-way bill required?
An e-way bill is required before you move goods whose consignment value exceeds ₹50,000 including GST, whether the movement is a sale, is for another reason such as sending goods to a job worker, or follows a purchase from an unregistered supplier (rule 138(1)). Below ₹50,000 you may still generate one voluntarily.
The consignment value is the value on the invoice, bill of supply or delivery challan plus CGST, SGST, IGST and cess, leaving out exempt goods on the same invoice. Two movements need one at any value: inter-state movement from a principal to a job worker, and inter-state handicraft goods sent by a person exempt from registration.
Example. A made-up Pune distributor ships goods with a taxable value of ₹45,000 to Indore. With 18% IGST of ₹8,100, the consignment value is ₹53,100, above ₹50,000, so an e-way bill is required even though the taxable value alone is below the limit. The checker above gives the same answer for ₹53,100.
Movement within a state can follow a different limit, because each state can notify its own limits or areas under its SGST rule 138(14)(d). Check your state's notification.
Who generates the e-way bill: Part A and Part B
Part A carries the invoice details and is filled by the registered consignor or consignee, or by a transporter, e-commerce operator or courier on their authorisation. Part B carries the vehicle details and is filled by whoever moves the goods. A Part A number is valid for 15 days for Part B to be added.
- Fill Part A before the goods start moving (rule 138(1)).
- If you use your own or a hired vehicle, add Part B yourself. If you hand the goods to a transporter, enter the transporter's details and the transporter completes Part B (rule 138(2) and (3)).
- Part B can be left blank when goods move up to 50 km within the state from your place of business to the transporter's (rule 138(3)).
- Cancel a wrong e-way bill within 24 hours of generation, unless it has been verified in transit (rule 138(9)).
- The other party has 72 hours, or until delivery if earlier, to reject it; after that it is treated as accepted (rule 138(12)).
The driver carries the invoice, bill of supply or delivery challan, and the e-way bill on paper or its number in electronic form (rule 138A(1)). One e-way bill is valid in every state (rule 138(13)).
How long is an e-way bill valid? A worked example
An e-way bill is valid for 1 day for every 200 km or part of it, or 1 day for every 20 km for over-dimensional cargo and multimodal shipments with a leg by ship. Validity runs from the time of generation, and each day ends at midnight of the day after.
Example. An e-way bill for 610 km is generated at 4:00 pm on 3 November 2026. 610 km needs 4 days (200 + 200 + 200 + 10), so the checker shows 4 days. The first day ends at midnight at the end of 4 November, and the bill stays valid until midnight at the end of 7 November 2026.
If the goods cannot arrive in time because of exceptional circumstances, including trans-shipment, the transporter can extend validity after updating Part B, within eight hours of its expiry (rule 138(10)).
What happens if goods move without a valid e-way bill?
Goods moving in breach of the rules, including without a required e-way bill, can be detained or seized along with the vehicle under section 129 of the CGST Act. Since 1 January 2022 they are released on payment of a penalty, 200% of the tax payable where the owner comes forward, or on security for that amount.
An e-way bill that expires before delivery no longer covers the goods, so plan extensions on long routes and around holidays. Generating one takes minutes; a detention holds up the goods, the vehicle and the sale.
What changed in 2025 and 2026, and what is only proposed
In force since 1 April 2025: the 30-day reporting limit for businesses with annual aggregate turnover of ₹10 crore or more. The e-invoice limit is still ₹5 crore and the e-way bill limit ₹50,000.
The 57th GST Council on 8 October 2026 recommended the following. They are proposals until notified:
- Extending e-invoicing to purchases from unregistered persons taxed under reverse charge, and to imports of services, for businesses with turnover of ₹5 crore and above.
- Intercepting a vehicle only on specific intelligence and with the authorisation of an officer not below Joint Commissioner.
- No interception in transit states, except where no e-way bill was generated or no document shows the origin or destination, and no confiscation under section 130 of goods in transit.
GSTN has added supply types for both reverse charge cases to the e-invoice sandbox (advisory of 16 October 2026), but the start date still depends on a notification.
Common mistakes with e-invoices and e-way bills
Most errors come from testing the wrong turnover year or the wrong value. E-invoicing looks back at every year since 2017-18, and the e-way bill limit uses the value including GST.
- Checking only this year's turnover for e-invoicing.
- Leaving out credit notes and debit notes, which need an IRN too.
- Issuing invoices first and getting IRNs later. Rule 48(4) expects the IRN when the invoice is prepared, and at ₹10 crore annual aggregate turnover the portal rejects documents older than 30 days.
- Assuming the ₹50,000 central limit applies to every movement within your state.
- Letting the e-way bill lapse on a delayed truck instead of extending it within eight hours.
- Not checking the buyer's GSTIN before generating the IRN. Use the GSTIN validator first.
How Ofin Legal can help
Ofin Legal's professional accounting team, supported by a qualified CA, keeps your books and GST returns on schedule for a fixed fee agreed upfront. If you are starting to export, the export registration finder lists the registrations you need, and the GST registration checker confirms your GST position.
