e-Invoicing is Now Mandatory for Rs.5 Crore+ Businesses
If your aggregate annual turnover in FY 2025-26 exceeded Rs.5 Crore, you must generate every B2B invoice, debit note, and credit note through the GST Invoice Registration Portal (IRP) before issuing it to the buyer. The IRP stamps the invoice with a unique Invoice Reference Number (IRN) and a QR code — without these, the invoice is legally incomplete and your buyer cannot claim Input Tax Credit on it.
This e-invoicing threshold was first introduced at Rs.500 Crore in January 2020 and has been progressively lowered. The April 2026 enforcement is the final step where Rs.5 Crore becomes a hard mandatory line with no grace period.
To check whether your business qualifies, verify your AATO (Aggregate Annual Turnover) on the GST portal under Services > Returns > Annual Aggregate Turnover. If you are above the threshold and have not yet integrated, use our GST Health Check service — our team will assess your invoicing setup and ensure you are compliant before your next invoice is issued.
Quick eligibility reference — e-invoicing from April 1, 2026
| Taxpayer Type | e-Invoice Required from April 1, 2026? |
|---|---|
| B2B supplier — turnover above Rs.5 Crore in FY 2025-26 | YES — IRN + QR code required on every invoice |
| B2C only supplier — turnover above Rs.5 Crore | QR Code Only — Dynamic QR on B2C invoices (not IRN) |
| B2B supplier — turnover below Rs.5 Crore | Not Mandatory — Voluntary compliance permitted |
| Composition taxpayer — any turnover | Exempt — from e-invoicing requirement |
| SEZ supplier — turnover above Rs.5 Crore | YES — IRN required on all outward supplies |
| Banks, insurers, NBFCs | Exempt — regardless of turnover |
LUT for FY 2026-27 Must Be Filed Before Your First Export Invoice
If you export goods or services without paying IGST, you need a valid Letter of Undertaking (LUT) on record for each financial year. The LUT you filed for FY 2025-26 expired on March 31, 2026. From April 1 onwards, every export invoice you issue without a fresh LUT for FY 2026-27 is technically non-compliant — and the GST department can reject your refund claim or raise a demand for the IGST you did not pay on those exports.
Filing the LUT takes about 10 minutes on the GST portal: Services > User Services > Furnish Letter of Undertaking (LUT). Select FY 2026-27, fill in your details, and submit with a digital signature. Our GST Registration Change & Amendment Services team handles this for all our export clients at the start of every financial year.
If you supply to SEZ units without IGST payment, the same LUT requirement applies. For exporters who have already issued invoices after April 1 without filing the LUT, our GST Rectification & Review team can help regularise the position before a notice is issued.
Start a Fresh Invoice Number Series from April 1, 2026
Every GST-registered business must begin a brand-new document series for all invoices, debit notes, and credit notes from April 1, 2026. If your last March 2026 invoice was INV-2025-1847, your first April 2026 invoice cannot be INV-2025-1848 — it must start fresh, such as INV-2026-001 or simply 001.
The reason this matters operationally is GSTN's cross-validation engine. When you upload invoices in GSTR-1, the system flags invoice series that span two financial years as a potential reconciliation anomaly. This can trigger a Scrutiny of GST Returns notice asking you to explain the series continuity. For businesses using Tally, Zoho, or any ERP — check your invoice configuration settings today and reset the counter.
Common trap: ERP software like Tally Prime and Busy automatically continues the previous series unless manually reset. This is the most common GST compliance error at FY start — your accounts team may not even realise it has happened until a notice arrives months later.
IMS Credit Note Obligations Now Tightly Enforced
The Invoice Management System (IMS) introduced in late FY 2025-26 is now a core part of GST compliance for FY 2026-27. When your vendor issues a credit note, it lands in your IMS dashboard and waits for your action — accept or reject. Here is what most businesses miss: if you do not act on a credit note in IMS, it is treated as deemed acceptance. But if your customer rejects a credit note that you issued to them, your GSTR-2A reconciliation and GSTR-3B are impacted automatically.
Specifically, a rejected IMS credit note reduces the ITC in your buyer's GSTR-3B for that filing period — which can damage your business relationship and invite queries from your buyer's finance team. On your side, any credit notes you have not tracked in IMS will show up as discrepancies during GST Assessment Proceedings.
Our GSTR-2B Reconciliation service tracks all IMS movements monthly so you never face a surprise ITC reversal. If you have already received a GST Notice related to IMS mismatches, our Demand & SCN Handling team resolves these before they escalate.
QRMP Scheme Selection Window Closes April 30, 2026
Taxpayers with aggregate turnover below Rs.5 Crore have until April 30, 2026 to choose their GST return filing frequency for FY 2026-27 under the QRMP scheme. If you prefer monthly filing for better cash flow visibility, or quarterly filing to reduce compliance effort, this is your one window to exercise that choice for the entire financial year's first quarter. Miss it and you are locked into your current frequency for April–June 2026.
The option is on the GST portal under Services > Returns > Opt-in for Quarterly Return. Our GST Return Filing Services team handles this selection as part of new financial year onboarding for all clients.
Your 8-Step GST Compliance Checklist for April 2026
Work through these eight steps sequentially. Steps 1–3 are already past due — if any are incomplete, act today. Our GST Audit & Assessment Support team can handle all of these on your behalf.
File LUT for FY 2026-27 Past Due
On the GST portal: Services > User Services > Furnish LUT. Required before your next export invoice.
Reset invoice series to 001 Past Due
Update your ERP or accounting software. Confirm with your accounts team that the reset is done for all invoice types.
Integrate e-invoicing with IRP if turnover > Rs.5 Crore Past Due
Test with a dummy invoice before going live. Every B2B invoice from April 1 must carry an IRN and QR code.
Resolve all pending IMS credit notes
Check your IMS dashboard. Accept or reject all vendor credit notes before filing your March 2026 GSTR-3B.
Reconcile March 2026 ITC — deadline April 20
Match GSTR-2B with books before the April 20 GSTR-3B filing deadline. Claim all eligible FY 2025-26 ITC in this return.
File GSTR-1 for March 2026 — deadline April 11
Include IRN references for all e-invoices issued in March. Missing GSTR-1 blocks your buyers' ITC claims.
Select QRMP frequency for FY 2026-27 — deadline April 30
If turnover is below Rs.5 Crore: GST portal > Services > Returns > Opt-in for Quarterly Return.
Collect GTA forward charge declarations
Obtain written declarations from every Goods Transport Agency before your first FY 2026-27 payment. Without this, reverse charge falls on you.
The Cost of Not Acting on These GST Rules
Each of the five new GST rules from 1 April 2026 carries a specific penalty for non-compliance.
No e-Invoice Generated
Invoice is legally invalid. Buyer cannot claim ITC — damages vendor relationships and commercial standing.
LUT Not Filed
Export refund can be denied outright. IGST demand raised on zero-rated supplies made without valid LUT.
Old Invoice Series Continued
GSTN cross-validation flags the series as anomaly — triggers scrutiny notice requiring explanation.
IMS Credit Notes Unresolved
Automatic ITC reversals with 18% interest for unresolved rejections in buyer's return cycle.
QRMP Window Missed
Locked into current filing frequency for the entire first quarter — disrupts return calendar and cash flow planning.
The good news is every one of these is preventable with timely action. N D Savla & Associates has helped hundreds of businesses across Mumbai, Pune, Hyderabad, and Bengaluru navigate exactly these year-start compliance transitions. Our GST services cover everything from GST Registration to Adjudication Support — so whether you need a quick LUT filing or a full compliance overhaul, we are one call away.
Need help with GST compliance for FY 2026-27?
Our GST Consultancy Services team handles LUT filing, e-invoice setup, IMS reconciliation, GSTR-1 filing, and the full compliance calendar for your business.
