Complete Guide to E-Invoice Updates in India by 2026: Rules, Deadlines, and Compliance
E-invoicing rules changed significantly in 2025. From lower turnover limits to a strict 30-day reporting rule and mandatory MFA, here’s a clear breakdown of what Indian MSMEs must follow by 2026.
Major e-invoices updates were released in 2025. E-invoicing updates decide how fast you need to report an invoice, whether your business is covered, and what issues you could face if you miss GST deadlines. It helps you avoid last-minute panic, keep your data clean, reduce return mismatches, and make GST filing smoother every month. Here are all the e-invoicing updates that businesses need to know by 2026-
E-Invoice Applicability Expanded for MSMEs
Who needs to generate e-invoices in 2025?
From 1 August 2025, businesses with aggregate turnover above ₹3 crore (PAN-based) are required to generate e-invoices for B2B transactions.
E-Invoice Threshold Lowered (₹3 Cr from Aug 2025)
- Earlier threshold: ₹5 crore
- New threshold: ₹3 crore
What this e-invoice update means for MSMEs:
Many growing MSMEs that were earlier outside e-invoicing are now covered. Even if one GSTIN crosses the limit, e-invoicing applies to all GST registrations under that PAN.
Related blog- Benefits of using GST e-invoicing software
30-Day Time Limit for Uploading E-Invoice on Portal
From 1 April 2025, a new 30-day e-invoicing rule will apply. Businesses with an annual turnover above ₹10 crore must upload their e-invoices within 30 days of issuing the invoice.
If a business misses their deadline, the IRN will not be issued, making the invoice invalid and leading your buyer to lose ITC.
E-invoicing tip for MSMEs:
Integrate your billing system with the GST IRP to auto-report invoices instantly. It helps to avoid invoice rejections.
More on how to avoid invalid invoicing.
Mandatory Multi-Factor Authentication
Security and data integrity are being strengthened with this MFA update.
From 1 January 2025, the government introduced phased MFA requirements for GST portal access, including e-invoice and e-way bill generation:
- January 1, 2025: MFA mandatory for taxpayers with AATO > ₹20 crore.
- February 1, 2025: MFA mandatory for AATO > ₹5 crore.
- April 1, 2025: MFA becomes compulsory for all taxpayers.
With MFA, a one-time code is sent to your registered mobile number upon login.
Read more- E-invoice updates by 2026
Why this matters:
This e-invoicing update reduces the risk of unauthorised access and ensures only verified users generate or cancel e-invoices.
E-invoicing tip for MSME-
Please make sure MFA access is assigned carefully when multiple staff members are taking care of billing.
With GimBooks, your e-invoicing experience will be easy and passwordless.
Invoice Numbers Become Case-Insensitive
Starting 1 June 2025, the GST Invoice Registration Portal (IRP) treats invoice numbers as case-insensitive for generating IRN.
Examples: ABC123, abc123, Abc123, will be treated as the same number by the system.
Impact of IRN e-invoicing update on business owners:
Case-sensitive e-invoicing update improves sync between systems (like billing software, IRP, and GSTR-1) and reduces duplicate or mismatched IRNs.
Ongoing New Invoice Management System (IMS) Enhancements
In October 2025, GSTN introduced updates to the IMS on the GST portal. That allows taxpayers to:
- Mark credit notes and certain documents as “Pending” for one tax period, giving more time for reconciliation.
- Declare or reverse ITC amounts related to pending records.
- Add remarks when marking a document as rejected or pending.
Importance of e-invoice update for small business owners:
This gives more flexibility for handling mismatches between supplier and recipient data and helps reduce unintended ITC reversals.
GimBooks
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Consequences of Ignoring E-Invoice Rules?
Consequences of ignoring e-invoice rules are:
- Rejected invoices.
- ITC blocked for customers.
- GSTR-1 mismatches.
- Risk of GST notices and penalties.
- Issues in buyer relationships.
For MSMEs, delayed compliance often shows up later as return reconciliation problems.
Get your E-Invoice Manager access!!
E-Invoice Compliance List for MSMEs in 2026
To stay compliant with all e-invoicing updates before 2026, Indian businesses can keep the following things in mind:
✔ Maintain compliance for turnover thresholds (₹3 Cr, ₹10 Cr)
✔ Report e-invoices within 30 days.
✔ Enable MFA for all GST deadlines.
✔ Use Uppercase format for invoice number.
✔ Use software to stay compliant with e-invoicing rules.
✔ Check and match e-invoices with GSTR-1 regularly.
Conclusion on E-invoice Updates: What MSMEs Should Do by 2026
2025 is a big year for e-invoicing under GST in India. It is with tighter timelines, stronger security, lower thresholds, and smarter data handling. And the good news? Once your e-invoicing process is set, e-invoice compliance becomes routine.
With GimBooks, your e-invoicing will have the latest e-invoicing updates like:
- Automatic IRN generation
- Automated invoice prefixes to avoid duplicate invoices,
- Timely uploads,
- and GST return reconciliation.
It keeps businesses e-invoicing compliant and stress-free!
E-Invoice Updates 2025: Frequently Asked Questions
- What are the latest e-invoice updates in 2025?
In 2025, e-invoicing rules expanded to cover more MSMEs, introduced a strict 30-day reporting deadline, made multi-factor authentication mandatory, and standardised invoice numbers for IRN generation.
- Who is required to generate e-invoices in 2025?
Any business with aggregate turnover above ₹3 crore in India is required to generate e-invoices for B2B transactions in 2025.
- What is the e-invoice turnover limit for MSMEs in 2025?
The e-invoice turnover limit in 2025 is ₹3 crore, calculated at the PAN level by adding all GST registrations under the same PAN.
- What is the 30-day time limit for e-invoice reporting?
From April 2025, businesses with annual turnover above ₹10 crore must upload e-invoices to the IRP within 30 days of issuing the invoice.
- What happens if an e-invoice is uploaded after 30 days?
If an e-invoice is uploaded after 30 days, the IRP will reject it, no IRN will be generated, and the buyer may lose eligibility to claim input tax credit.
Yes. Multi-factor authentication is mandatory in 2025 for accessing the e-invoice and e-way bill portals.
- Are e-invoice numbers case-sensitive in 2025?
No. From June 2025, invoice numbers are treated as case-insensitive and automatically converted to uppercase by the IRP system.
- Does e-invoicing apply to B2C invoices?
No. E-invoicing applies only to B2B, export, and deemed export invoices. It does not apply to B2C invoices.
- Can an invoice be valid without IRN in 2025?
If e-invoicing applies to your business, an invoice without an IRN is not legally valid for B2B or export transactions.
- Is e-invoicing mandatory for exports in 2025?
Yes. If your business falls under e-invoicing rules, export invoices must be generated with a valid IRN.
- Can an e-invoice be cancelled after generation?
Yes. An e-invoice can be cancelled within 24 hours of IRN generation. After that, cancellation must be done through GST returns.
- Can e-invoice details be amended later?
No. E-invoice details cannot be edited on the IRP. Any corrections must be made through GST returns after IRN generation.
- How does e-invoicing impact GSTR-1 filing?
Once an e-invoice is generated, its details automatically flow into GSTR-1, reducing manual entry and invoice mismatches.
- What are the penalties for e-invoice non-compliance?
Non-compliance can lead to invoice rejection, ITC loss for buyers, GST notices or penalties, and mismatches between GSTR-1 and GSTR-3B.
15. How can MSMEs stay compliant with e-invoice rules in 2025?
MSMEs should use GST-compliant billing software, upload e-invoices within 30 days, enable MFA, and regularly reconcile e-invoices with GST returns.