Software Costs and 2026 GST Rules
E-invoicing and e-way bills in 2026: thresholds, the 30-day rule and what your software must do
When GST e-invoicing becomes mandatory, the ₹5 crore threshold and 30-day reporting limit, how IRN and QR codes flow into GSTR-1, e-way bill basics and how software and API costs work.
E-invoicing is mandatory for a GST-registered business once its aggregate turnover has exceeded ₹5 crore in any financial year from 2017-18 onwards (the threshold that has applied since 1 August 2023). It covers B2B invoices, export invoices and credit and debit notes, which must be reported to a government Invoice Registration Portal (IRP) to get an Invoice Reference Number (IRN) and a signed QR code. Businesses with aggregate turnover of ₹10 crore or more must report each invoice within 30 days of its date (from 1 April 2025, under a GSTN advisory; check the e-invoice portal for the current rule). Separately, an e-way bill is needed for moving goods worth more than ₹50,000 in a consignment, with state-specific variations. Both systems feed your GST returns, which is why many businesses pay for software that connects to them.
This guide is part of the GST return filing software overview; the wider 2025–2026 return changes are in GST portal changes 2025–2026. Costs are illustrative.
E-invoicing: who, what and what is excluded
| Question | Rule (check the portal for the current position) |
|---|---|
| Who must e-invoice | Registered persons whose aggregate turnover exceeded ₹5 crore in any FY since 2017-18 |
| Documents covered | B2B tax invoices, credit notes, debit notes, export invoices, supplies to SEZ |
| Not covered | B2C invoices (except a dynamic QR rule for very large businesses), bills of supply, delivery challans, imports |
| Exempt entities | Notified classes such as banks and other financial institutions, insurers, goods transport agencies, passenger transport, multiplex admissions, SEZ units, government departments |
| Time limit | 30 days from the invoice date for taxpayers with AATO of ₹10 crore or more, from 1 April 2025 |
| Cancellation | IRN can be cancelled within 24 hours on the IRP; after that, issue a credit note |
Once you cross the threshold, you stay in. The test looks at every year since 2017-18, so a business that crossed ₹5 crore once must e-invoice even if turnover later falls.
The GST Council's 57th meeting (October 2026) recommended extending e-invoicing to reverse-charge purchases from unregistered persons and imports of services for taxpayers with turnover of ₹5 crore and above. That is a recommendation; check for the notification before changing your process.
How an e-invoice flows into your returns
- Your software (or you, on the IRP website) prepares the invoice in the standard e-invoice schema.
- The IRP validates it, assigns the IRN and returns a digitally signed QR code.
- You print or send the invoice with the QR code to the customer.
- The IRP passes the details to the GST system, where they auto-populate your GSTR-1 and, if Part B is supplied, can generate an e-way bill.
- The customer sees the invoice in IMS and GSTR-2B after you file GSTR-1.
An invoice that should have been e-invoiced but was not is not a valid tax invoice for this purpose, and the buyer's ITC on it is at risk. That is the commercial reason buyers insist on IRNs.
E-way bill basics
| Point | Summary |
|---|---|
| When needed | Movement of goods with consignment value above ₹50,000 (some states set different intra-state limits) |
| Who generates | Supplier, recipient or transporter, on the e-way bill portal or through software/API |
| Parts | Part A (invoice and goods details), Part B (vehicle details) |
| Validity | Based on distance, roughly one day per 200 km for normal cargo; can be extended within limits |
| Blocking | Generation can be blocked when GSTR-3B (or CMP-08) for the required periods has not been filed |
| Recent changes | From 2025, tighter limits on generating e-way bills for old documents and on extensions, and multi-factor authentication; check advisories |
The 57th GST Council meeting also recommended limiting interception of goods in transit to cases based on specific intelligence with senior-officer authorisation. Until amendments are made, current rules on inspection apply.
Software and cost: what you are paying for
There are three common ways to e-invoice:
- Directly on the IRP portal, entering each invoice by hand or uploading in bulk with the free offline tool. No subscription, but manual and slow at volume.
- Through your accounting or billing software, which calls the IRP's API through a GST Suvidha Provider and prints the QR code on the invoice.
- Through a dedicated e-invoice/e-way bill tool that sits between an ERP and the IRP, often priced by number of IRNs or API calls.
Illustrative cost comparison for a Surat textile trader with 600 B2B invoices a month:
| Approach | Illustrative yearly cost | Staff time |
|---|---|---|
| Manual on IRP | Nil | 600 × 3 minutes = 30 hours a month |
| Accounting software with e-invoicing add-on | ₹8,000–₹25,000 | 2–3 hours a month for exceptions |
| Dedicated API tool, priced per IRN | e.g. 7,200 IRNs × ₹1–₹3 = ₹7,200–₹21,600 | Minimal, if integrated |
Thirty hours a month of clerical time is far more expensive than any of the software options. Model your own case in the annual compliance cost estimator, and see GST software pricing models for how API pricing is structured.
Common e-invoicing mistakes
- Missing the 30-day window on old invoices found late, especially credit notes. The IRP rejects them and the document cannot be reported.
- Wrong document type, e.g. issuing a debit note when an invoice was needed.
- Duplicate IRN attempts after a network timeout, creating confusion over which invoice is valid.
- Editing invoice data in GSTR-1 after it was auto-populated from the IRP: the edit does not change the IRN record and causes mismatches. Correct through credit or debit notes instead.
- Forgetting suppliers' e-invoices: check that your large suppliers' invoices carry IRNs, or your ITC can be questioned.
These and other errors are listed in common GST filing mistakes.
Frequently asked questions
My turnover is ₹4.8 crore. Should I prepare for e-invoicing?
Yes. If you expect to cross ₹5 crore in any year, set up e-invoicing before the year you cross, because the obligation starts from the following financial year once aggregate turnover exceeds the limit.
Is there a fee to use the IRP?
No. Government IRPs do not charge for generating IRNs. Costs come from software, GSP access or staff time.
Does an e-invoice replace the e-way bill?
No, but if vehicle details are included, the IRP can generate the e-way bill from the same data, saving a step.
Can a composition dealer e-invoice?
Composition dealers issue bills of supply, which are outside e-invoicing.
Sources
- GST portal — e-invoice advisories and links to IRPs
- E-way bill system — e-way bill generation and rules
- CBIC GST — notifications on e-invoice thresholds and exemptions
- GST Council — 57th meeting recommendations on e-invoicing scope
