GST E-Invoicing ₹5 Crore Threshold: AATO, IRN and QR Code

Covered B2B, export and specified credit or debit-note documents must obtain an IRN and signed QR code.

Legal or Computational Framework

Governing rule

The threshold is PAN-based across GSTINs and is tested against any relevant preceding financial year. E-invoice is not a separate invoice: invoice data is reported to the IRP, which returns the IRN and QR code.

For the connected rule, example or next step, see GST E-Invoice Turnover Test: PAN-Level Aggregation, Exclusions and Traps.

Correct workflow

Calculate PAN AATO history; identify covered GSTINs and documents; configure HSN, recipient and place-of-supply data; report within the applicable IRP window; verify IRN and QR; reconcile IRP, GSTR-1 and books.

Step-by-step method

1. Calculate PAN AATO history.
2. identify covered GSTINs and documents.
3. configure HSN, recipient and place-of-supply data.
4. report within the applicable IRP window.
5. verify IRN and QR.
6. reconcile IRP, GSTR-1 and books.

Worked example

A group has GSTIN turnover of ₹3 crore in Maharashtra and ₹2.5 crore in Karnataka in one prior year. PAN AATO exceeds ₹5 crore, so covered invoices of both GSTINs enter the mandate unless an exclusion applies.

The example is an audit trail, not a substitute for the user's facts. Change one input—residence, payment date, tax year, asset, return form, GST status, employer category or supporting document—and the result can change.

Edge cases

• B2C invoices are generally outside the current B2B mandate: the IRN/e-invoice requirement under Rule 48(4) applies to B2B supplies, exports and specified documents — ordinary retail B2C sales are not covered by it, though a separately-thresholded dynamic QR code requirement can still apply to large B2C-heavy businesses; the two QR requirements are not interchangeable.
• Exports are covered documents: a zero-rated export invoice from a PAN that has crossed the threshold still needs an IRN — exemption from GST payment (under LUT or with IGST refund) does not exempt the document itself from e-invoicing.
• Portal enablement is not the legal test: the IRP's "enabled" or "not enabled" flag is a system-detected convenience based on past filings, not the actual legal trigger — a PAN that legally crossed the threshold must comply even if the portal has not yet auto-enabled it, and can request enablement directly if needed.
• IRN cancellation has a restricted window: an IRN can generally only be cancelled on the IRP within 24 hours of generation; once that window closes, the correction route is a credit/debit note or GSTR-1 amendment, not IRN cancellation.
• Reporting time limits can change through official advisories: the 30-day reporting window for AATO ≥ ₹10 crore taxpayers (effective 1 April 2025) is itself a change from an earlier, longer informal practice — treat any specific day-count as subject to the latest IRP advisory, not a fixed rule.

What Generic Pages Miss

Practical Documentation Checklist

• PAN-wise turnover history
• GSTIN master
• IRP JSON and acknowledgement
• QR verification
• Invoice/note register
• GSTR-1 reconciliation

See the broader GST & Indirect Tax knowledge hub for related rules and calculators on this topic.

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