GST E-Invoice Bill Limit in India FY 2025-26 | Turnover Rules

GST E-Invoice Bill Limit in India FY 2025-26 | Turnover Rules

This complete guide explains the e invoice bill limit under GST for FY 2025-26 in simple language. You will learn the latest turnover threshold, the e invoice generation limit, and the new e invoice date limit rules applicable to businesses in India. The article covers government updates, who must generate e-invoices, exceptions, registration requirements, cancellation rules, and real business examples. It also includes comparison tables, practical tips, FAQs, penalties, timelines, and simple guidance to help you stay GST-compliant. Whether you are a small seller or a growing enterprise, this guide explains everything you need to know about e-invoicing under GST in an easy and structured manner.

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Introduction: What Is the GST E-Invoice Bill Limit and Why Does It Matter?

Have you ever wondered whether your business needs to generate e-invoices under GST, or what the exact e invoice bill limit is for FY 2025-26? Many businesses in India still get confused about when e-invoicing becomes mandatory, what turnover counts, how much time they have to generate the invoice, and what happens if the e invoice date limit is crossed. This guide explains all these rules in simple language so you can stay compliant, avoid penalties, and maintain smooth GST record-keeping.

The Government of India introduced e-invoicing to simplify billing, reduce mistakes, and make GST filing easier. Today, thousands of companies follow this system using the GST IRP portal and various accounting software. If you understand the correct e-invoice threshold, timelines, cancellation rules, and applicability, your business can avoid last-minute issues and generate invoices faster and more accurately.

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What Is E-Invoicing Under GST?

E-invoicing means generating an electronic invoice through a government-approved platform called the Invoice Registration Portal (IRP). The IRP checks, validates, and assigns a unique IRN number and QR code to every invoice.

• The seller creates an invoice in their billing or accounting software.
• The invoice is uploaded to the IRP portal.
• The IRP validates it and generates IRN + QR code.
• The e-invoice is automatically sent to the buyer and the GST portal.

This system reduces manual entry, prevents billing errors, and improves compliance across the GST network.

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GST E-Invoice Bill Limit FY 2025-26

The e invoice bill limit for FY 2025-26 means the annual turnover threshold after which e-invoicing becomes compulsory for a business in India. The latest GST notification states that any business with a turnover of:

₹5 crore or more in any previous financial year from 2017-18 onward must generate e-invoices.

• This limit applies to both goods and services.
• Turnover includes taxable, exempt, and export supplies.
• The rule applies even if turnover crossed the limit only once in any past year.

If your turnover is below ₹5 crore, e-invoicing is currently optional but still allowed through accounting software and various tools.

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Understanding the E-Invoice Generation Limit

The e invoice generation limit refers to the turnover threshold that determines whether your business must generate e-invoices for B2B, export, and RCM-applicable supplies. This limit currently stands at:

₹5 crore annual aggregate turnover.

This includes:

• Total turnover within India
• Export turnover
• Exempt supplies
• Taxable supplies

Once your turnover exceeds ₹5 crore in any one financial year since 2017-18, all future invoices must be generated electronically via the IRP portal.

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E-Invoice Date Limit: How Much Time Do You Have?

The e invoice date limit means the time allowed to generate an e-invoice after creating a tax invoice. Under the latest government guidelines, there is no fixed timeline (such as 24 hours or 48 hours) for generating an e-invoice.

However, GST officers recommend generating the e-invoice on the same day to avoid mismatches during supply, shipping, or GST filing.

Important: Once the invoice is reported, the IRP assigns a unique IRN. If you delay reporting for many days, your invoice may become invalid during audits.

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When Is E-Invoicing Mandatory Under GST?

E-invoicing becomes mandatory for businesses when:

• Aggregate turnover ≥ ₹5 crore in any earlier financial year
• B2B supplies are made
• Exports or SEZ supplies are made
• Reverse charge supplies are received

E-invoicing is not mandatory for B2C invoices, but QR codes may be required depending on turnover.

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Applicability of E-Invoicing in India (FY 2025-26)

The e-invoice limit under GST applies based on the aggregate turnover of a business. If your turnover exceeds ₹5 crore in any previous financial year since 2017-18, e-invoicing becomes mandatory from the next financial year. This means even if your current year's turnover is below ₹5 crore, but you crossed it earlier, the rule still applies. 📊

It applies to all B2B supplies, exports, and supplies to SEZs (with payment of tax). However, B2C invoices and exempted supplies are not covered under e-invoicing.

• ✔️ Applicable to registered businesses exceeding ₹5 crore turnover
• ❌ Not applicable to unregistered or exempt entities
• ✔️ Applies to all taxable goods and services
• ❌ Not applicable for B2C invoices or exempted goods

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Who Is Exempt from E-Invoice Bill Requirements?

The following businesses do not need to follow the e invoice bill limit rules even if their turnover exceeds ₹5 crore:

• Insurance companies
• Banking companies (including NBFC)
• Goods Transport Agencies (GTA)
• Passenger transportation services
• SEZ units (SEZ developers are included)
• Department of post
• Cinema halls / multiplex services
• Passenger transportation services
• Telecommunication services and departmental supplies

These exemptions are provided directly by the GST Council for operational convenience and are officially mentioned by the CBIC (Central Board of Indirect Taxes and Customs) and help simplify compliance for specific industries.

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Turnover Calculation: What Counts & What Doesn't?

The official GST definition of turnover includes:

• Taxable supplies
• Exempt supplies
• Zero-rated supplies
• Exports
• Inter-state turnover

Turnover excludes:

• Taxes such as GST
• Interest income (in some cases)
• Non-business receipts

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Comparison Table: E-Invoice Limit Over the Years

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Who Should Generate E-Invoice?

The e-invoice generation limit applies to all registered businesses under the Goods and Services Tax (GST) whose annual aggregate turnover exceeds ₹5 crore in any financial year from FY 2017-18 onwards. The limit is calculated on a PAN-based turnover (not GSTIN-wise), meaning if your company has multiple branches with one PAN, all their turnover combined is considered.

• Businesses involved in the sale of goods or services
• Exporters
• Dealers registered under GST
• Suppliers to government departments or PSUs

However, certain businesses are exempted from e-invoicing even if they exceed the limit - like SEZ units, banks, NBFCs, insurance companies, and passenger transport services.

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Why This Matters: Benefits of E-Invoicing for Businesses

• Faster billing and easier GST filing
• Reduces human errors in invoice creation
• Improves business record-keeping
• Prevents fake invoices and fraud
• Auto-populates GSTR-1 and e-way bills
• Enhances credit flow and transparency

Most modern accounting software now supports direct e-invoice generation, making the process smooth for small and large enterprises.

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When Does the E-Invoice Bill Limit Apply in FY 2025-26?

The e invoice bill limit applies the moment your aggregate turnover crosses ₹5 crore in any financial year from 2017-18 onwards. This means the GST law does not check only FY 2025-26 turnover - it checks your entire turnover history. Once crossed, the e-invoicing mandate continues permanently in the upcoming financial years.

Many businesses get confused and think the limit resets every year. But the GST rules are clear: Once eligible, always eligible. Even if your turnover drops below ₹5 crore later, the requirement remains applicable. This rule helps the government maintain digital compliance and smooth reporting under GST.

Why This Matters

If a business mistakenly believes the limit reset and stops generating e-invoices, GST officers may treat invoices as invalid. This can lead to penalties, input tax credit issues, and compliance notices. So it's important to understand turnover checks correctly.

Turnover Conditions That Trigger the E-Invoice Limit

• Your turnover crosses ₹5 crore in any previous year (after 2017-18)
• Your total turnover includes both taxable and exempt supply
• Your turnover includes export of goods or services
• Your turnover includes interstate or intrastate supply

If any of these conditions apply, the business must generate e-invoices for all B2B and export invoices.

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What Is Included in Turnover for E-Invoice Limit?

GST turnover calculation for e invoice bill limit includes all values appearing under your GST registration PAN number. Even if you have multiple GSTINs across different states, they are all added together to calculate the final threshold.

Items Included in Turnover

• Taxable supply of goods
• Taxable supply of services
• Exempt supply
• Zero-rated supply (exports)
• Interstate and intrastate supply
• Supply to SEZ units

Items Not Included in Turnover

• GST collected from customers
• Amounts received as pure agent
• Non-GST supply like alcohol, petrol etc.

Note: GST authorities check turnover from the GST Annual Return (GSTR-9), Income Tax Return, and Books of Accounts. If turnover mismatch exists, the department may issue scrutiny notices.

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E-Invoice Generation Limit (FY 2025-26)

The e invoice generation limit refers to the turnover threshold after which a business must generate e-invoices compulsorily. For FY 2025-26, the limit remains at ₹5 crore. This applies to manufacturers, traders, service providers, exporters, and almost all regular taxpayers under GST.

Key Points About E-Invoice Generation Limit

• Limit applies to aggregate turnover and not GSTIN-wise turnover
• Once applicable, it continues permanently
• Limit applies for all B2B transactions and exports
• E-invoice is required even if invoice value is ₹1
• There is no minimum invoice amount for generating e-invoice

Export invoices must also follow the same rule because they too are classified as B2B invoices under GST e-invoicing.

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E-Invoice Date Limit (Important Timelines)

The e invoice date limit refers to the time allowed for generating an e-invoice after the invoice is created. This is one of the most important compliance requirements because delayed generation may lead to penalties or invalidation of invoices.

As per the latest GST notification, e-invoice must be generated on the same day the invoice is issued. The government is gradually moving towards real-time e-invoicing, so timely generation is necessary to keep records accurate.

Time Allowed for E-Invoice Generation

Although businesses under ₹100 crore turnover do not have a strict 7-day limit, they must generate the e-invoice before the goods are dispatched or the service is provided. Otherwise, the invoice is treated as invalid.

Why Timing Matters

• IRP validates the invoice only if date is correct
• Delayed e-invoices may cause e-way bill mismatch
• Buyers may reject late or invalid invoices
• Input Tax Credit (ITC) may be blocked

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What Happens If E-Invoice Is Not Generated?

If a business crosses the e invoice bill limit and still issues invoices without generating e-invoices, the GST law treats such invoices as invalid. This leads to multiple problems for both seller and buyer.

Consequences of Non-Generation

These issues affect business cash flow, customer relationships, and overall GST compliance.

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Who Is Exempt from E-Invoice Bill Limit?

Although most businesses with turnover above ₹5 crore must follow the e-invoice rule, some categories are exempt even if their turnover exceeds the limit. The government provides exemption because their activities fall outside typical B2B operations.

Exempt Categories

• SEZ Units (but not SEZ Developers)
• Banks and Financial Institutions
• NBFCs
• Insurance companies
• GTA (Goods Transport Agency)
• Cinema hall ticketing
• Passenger transportation service

Note: If these entities issue B2B invoices, they still do not need to generate e-invoices because exemption applies irrespective of turnover.

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Documents That Require E-Invoicing

Once the e invoice bill limit applies, the business must generate e-invoices for specific documents. These documents must be uploaded to the e-invoice portal (IRP) for validation and IRN generation.

Documents Covered

• Tax Invoice (for B2B)
• Debit Note
• Credit Note
• Export Invoice

Documents Not Covered

• B2C invoices
• Delivery challan
• Receipt voucher
• Bill of supply

Even though B2C invoices do not require e-invoicing, QR code requirements apply for large businesses.

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E-Invoice Format: What Details Are Mandatory?

E-invoicing requires a structured data format in JSON, but businesses can continue creating invoices in their existing software. The system automatically converts the invoice into JSON before uploading it to the IRP.

Mandatory Fields in E-Invoice

• Supplier GSTIN
• Buyer GSTIN
• Invoice number
• Invoice date
• Item details
• HSN code
• Taxable value
• CGST, SGST, IGST amount
• Total invoice value
• IRN (generated automatically)
• QR code

These details help GST authorities track invoices digitally and prevent tax leakages.

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Step-by-Step Guide: How to Generate an E-Invoice online through einvoice portal

If your turnover has crossed the e invoice bill limit, you must use the IRP (Invoice Registration Portal) to generate e-invoices. The process is simple once you understand the steps. Here is the complete step-by-step guide for FY 2025-26.

1. Login to the E-Invoice Portal using your GSTIN and login credentials. This is the same portal used for e-way bills.
2. Upload Invoice Details from your accounting software or manually enter data. Most businesses use software that directly uploads JSON files.
3. IRP Validates the Invoice by checking mandatory fields like GSTIN, HSN, taxable value, and invoice date.
4. IRN (Invoice Reference Number) is Generated. The IRN is a unique 64-character code assigned to every e-invoice.
5. QR Code is Added Automatically by the portal. This QR must appear on the printed invoice.
6. Download the Generated E-Invoice (PDF or JSON). You can print it and share it with customers.

Once this process is complete, your invoice becomes a valid GST-compliant e-invoice.

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Mistakes to Avoid When Generating E-Invoices

Businesses often make small mistakes that lead to e-invoice rejection or delays. Avoiding these helps maintain smooth GST compliance and prevents penalties.

• Entering incorrect GSTIN of buyer
• Wrong invoice date or backdating
• Invalid HSN codes
• Mismatch between e-invoice and e-way bill
• Generating duplicate e-invoices
• Incorrect taxable value or tax rates
• Missing mandatory fields

Why This Matters

Even one mistake can make your e-invoice invalid and lead to ITC blockage for your buyer. Correcting such errors later leads to more paperwork and scrutiny.

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E-Invoice Cancellation Rules (FY 2025-26)

The GST system allows cancellation of e-invoices, but only under specific conditions. You cannot partially cancel an e-invoice; it must be cancelled in full.

Key Rules for Cancellation

• E-invoice must be cancelled within 24 hours of generation
• Cancellation is allowed only if the invoice has not been reported to GST return
• Cancellation reason must be valid and recorded
• After cancellation, the same invoice number cannot be reused

Reasons Allowed for Cancellation

• Wrong GSTIN of buyer
• Incorrect invoice value
• Invoice generated by mistake
• Duplicate invoice

After 24 hours, IRP will not allow cancellation. In such cases, you must issue a credit note to nullify the invoice.

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E-Invoice Generation Timeline and Cancellation

As discussed earlier, the e-invoice must be generated before the movement of goods or issuance of a final invoice. Once generated, it can only be cancelled within 24 hours. After that, the invoice remains valid and must be adjusted through a credit note if required.

It's also important to note that an e-invoice cannot be modified after generation - so always double-check details like invoice number, date, GSTIN, and amount before submission.

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Penalties for Not Generating E-Invoice

Failure to generate a mandatory e-invoice can lead to strict penalties under the GST Act. The government treats it as a non-issuance of invoice - meaning the supply itself is invalid for GST purposes. 🚫

• 💸 Penalty of ₹10,000 per invoice, or 100% of the tax due (whichever is higher)
• ❌ Invoice not treated as a valid tax document
• 📦 Goods transport may be stopped by authorities
• 🕒 Delay in filing returns due to missing invoice data

To avoid such issues, always ensure timely generation and proper validation of e-invoices. The portal makes it easy to generate them instantly, helping you remain penalty-free and compliant.

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Features of the E-Invoicing Portal

The official e-invoice portal (einvoice1.gst.gov.in) is a simple and easy-to-use platform designed for smooth invoice generation. It helps taxpayers prepare and validate e-invoices online without additional software costs. Key features include:

• ✔️ Auto-validation of invoice details
• ✔️ Real-time IRN generation and QR code creation
• ✔️ Integration with GST and e-way bill portals
• ✔️ Cloud-based access for faster uploads
• ✔️ Multiple API options for accounting software
• ✔️ Track and download e-invoices anytime

The portal simplifies tax compliance, improves accuracy, and allows businesses to remain GST-compliant efficiently. 🧾

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Government Notifications and Latest Updates

📢 The Government of India and GSTN regularly issue notifications about the e-invoice system and its updates. The official GST portal provides new rules, changes in turnover thresholds, and technical improvements in the e-invoice portal.

The latest update in FY 2025-26 confirms that the ₹5 crore threshold remains effective, and the government may plan to extend it to smaller taxpayers gradually. Users should stay updated by checking GST notifications and visiting cbic-gst.gov.in regularly.

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Example: E-Invoice with IRN and QR Code

Let's understand with a simple example to clear the concept.

Example

ABC Traders has a turnover of ₹8 crore in FY 2024-25. In FY 2025-26, the business creates a B2B invoice of ₹45,000.

Since turnover exceeded the e invoice bill limit earlier, e-invoicing is mandatory.

Steps Taken

• Invoice details entered in accounting software
• JSON automatically uploaded to IRP
• IRN generated
• QR code embedded
• Final invoice printed and shared

This invoice is now valid for GST and ITC purposes.

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Step-by-Step Example of E-Invoicing

Let's look at an example to understand how it works practically 👇

1. Mr. Raj, a GST-registered seller, has a turnover of ₹6 crore in FY 2025-26.
2. He sells goods worth ₹50,000 to another registered dealer in another state.
3. Since his turnover exceeds ₹5 crore, he must generate an e-invoice.
4. He logs in to the official e-invoice portal and uploads the invoice JSON file.
5. The system validates the invoice, assigns an IRN, and returns the signed e-invoice with a QR code.
6. He prints the QR-coded invoice and shares it with the buyer.
7. This e-invoice data automatically reflects in his GSTR-1 return.

This digital process ensures easy filing, less paperwork, and faster invoice tracking ✅.

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Comparison Table: Regular Invoice vs E-Invoice

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Best Software for E-Invoicing (FY 2025-26)

To simplify compliance, many businesses prefer software that integrates directly with the IRP. These platforms are easy-to-use, cloud-based, and reduce manual work.

Popular E-Invoice Software in India

• TallyPrime
• Zoho Books
• Busy Accounting
• ClearTax GST
• Marg ERP
• QuickBooks (India)

Why Businesses Use Software

• Auto-upload invoices to IRP
• Error-free GST validation
• Faster invoice generation
• Supports bulk e-invoice generation
• Auto-sync with e-way bill portal

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Advantages of Using E-Invoicing

• 🔹 Reduces manual entry and improves accuracy
• 🔹 Auto-fills returns and saves compliance time
• 🔹 Prevents fake invoicing and tax evasion
• 🔹 Real-time monitoring of business transactions
• 🔹 Increases transparency between buyer and seller
• 🔹 Integration with e-way bill and GSTR-1 modules

With automation, real-time validation, and integration, GST e-invoicing has simplified how businesses manage sales and records across India. 🇮🇳

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Tips to Stay Compliant with GST E-Invoicing Rules

• ✅ Verify if your turnover crosses ₹5 crore anytime since FY 2017-18
• ✅ Use only authorized e-invoice portals
• ✅ Check for latest notifications and updates
• ✅ Generate invoices before dispatching goods
• ✅ Keep your accounting software GST-compliant
• ✅ Save all IRNs for future record verification

These simple steps will help you stay ahead of deadlines, avoid fines, and maintain smooth GST filing every month. 💼

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Summary

The GST system in India requires e-invoicing once a business crosses the e invoice bill limit of ₹5 crore. This threshold applies PAN-wide and does not reset every year. Once eligible, e-invoicing becomes permanently applicable. Businesses must generate e-invoices for B2B and export invoices within the allowed e invoice date limit. The process involves uploading invoice data to the IRP, getting validation, IRN, and QR code. Mistakes like incorrect GSTIN, wrong date, or missing HSN can lead to rejection. E-invoice cancellation is allowed only within 24 hours. Using good e-invoicing software helps automate compliance and avoid errors. Overall, e-invoicing improves accuracy, reporting, and GST filing for businesses in FY 2025-26.

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Conclusion

E-invoicing has become an important part of GST compliance in India. With the e invoice bill limit fixed at ₹5 crore, more businesses are coming under the digital invoicing mandate every year. Understanding the rules, date limits, and processes helps you avoid penalties and stay compliant. Whether you are selling goods or providing services, following proper e-invoice rules ensures accurate GST reporting, smoother accounting, and better business efficiency. Staying updated with the latest GST notifications and using reliable software makes e-invoicing simple and error-free across FY 2025-26 and future years.

Stay updated with official notifications on CBIC and GST websites to continue filing and generating invoices without issues. ✅

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Frequently Asked Questions (FAQs)

What is the current e invoice bill limit in FY 2025-26?

The e invoice bill limit for FY 2025-26 is ₹5 crore aggregate turnover. Any business exceeding this limit must generate e-invoices for B2B and export supplies.

Is e-invoicing mandatory for all businesses?

No. E-invoicing is mandatory only for registered businesses exceeding ₹5 crore turnover. Some sectors like banks, NBFCs, and passenger transport are exempt.

Is e-invoicing mandatory for businesses below ₹5 crore?

No. Businesses below ₹5 crore turnover are not required to generate e-invoices unless the government reduces the limit in future years.

What is the e invoice date limit?

Businesses must generate e-invoices on the same day as the invoice. For turnover above ₹100 crore, e-invoices must be generated within 7 days.

Can an e-invoice be cancelled?

Yes, but only within 24 hours of generation. After that, you must issue a credit note to cancel the invoice.

Can I cancel an e-invoice after 24 hours?

No. E-invoices can be cancelled within 24 hours of generation. After that, corrections must be made using a credit or debit note.

Do export invoices need e-invoicing?

Yes. Export invoices are treated as B2B invoices and must follow e-invoicing rules once the turnover limit is crossed.

Who is exempt from e-invoicing?

Banks, NBFCs, insurance companies, GTA, SEZ units, and passenger transportation services are exempt from e-invoicing even if turnover crosses the limit.

What happens if e-invoice is not generated?

The invoice becomes invalid, ITC may be denied, penalties apply, and the business may receive GST notices.

Where can I generate my e-invoice?

You can generate it online at the official e-Invoice Portal authorized by the Government of India.

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

Failure to generate an e-invoice can result in penalties and make your invoice invalid for GST purposes.

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