E invoice-1

This query is : Resolved

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Query on whether a HUF must generate e-invoices after obtaining a new GSTIN with turnover below threshold, while earlier PAN turnover exceeded limits. Expert clarified e-invoicing is still mandatory as it is PAN-based, not GSTIN-based. Non-compliance attracts penalties under Section 122 CGST Act.

CA Nidhi Kanabar

CA Nidhi Kanabar (Querist)
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03 February 2026 Suppose a client’s aggregate GST turnover for FY 2018–19 was ₹20.63 crore. Subsequently, the business was discontinued and the GST registration was cancelled in FY 2021–22 due to no business activity.

In FY 2024–25, the same HUF obtained a new GST registration (different GSTIN). The turnover under the new GSTIN is less than ₹3 crore.

However, the e-invoice portal shows the e-invoicing status as “Enabled” for the new GSTIN.

In this scenario, is the client legally required to generate e-invoices, even though the current turnover is below the prescribed threshold and the GSTIN is different, but the PAN (HUF) is the same?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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04 February 2026 Yes, the client must generate e-invoices under the new GSTIN, even though:
Turnover is below ₹3 crore, and
GSTIN is different,
because the PAN (HUF) had crossed the prescribed turnover limit in an earlier financial year.

CA Nidhi Kanabar

CA Nidhi Kanabar (Querist)
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04 February 2026 What is non compliance of E invoice provision under GST Act explain with Section and penalty liable under which section ?

Ram Avtar Singh

Ram Avtar Singh (Expert)
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04 February 2026 The legal foundation for e-invoicing is built through a combination of the following:
Rule 48(4) of the CGST Rules: Specifies the "manner" of issuing an invoice for notified persons, which requires generating an Invoice Reference Number (IRN) on the Invoice Registration Portal (IRP).
Rule 48(5) of the CGST Rules: Explicitly states that any invoice issued in a manner other than that prescribed in Rule 48(4) shall not be treated as a valid invoice.
Section 31 of the CGST Act: Mandates the general issuance of tax invoices for taxable supplies.
Penalties for Non-Compliance
Failure to comply triggers penalties under Section 122 of the CGST Act, 2017:
Offence Penalty Amount Applicable Section
Failure to generate e-invoice 100% of the tax due or ₹10,000, whichever is higher (per invoice). Section 122(1)(i)
Incorrect or erroneous e-invoice Up to ₹25,000 per instance. Section 122(3)(e) or Section 125
Major Consequences of Non-Compliance
Invalid Document for ITC: Recipients cannot claim Input Tax Credit (ITC) because an invoice without a valid IRN is not a legal tax invoice under Section 16.
Detention of Goods: Goods transported with an invalid invoice can be detained or seized under Section 129.
E-Way Bill Issues: E-way bills may become invalid or impossible to generate since they are now often linked to the IRN.
Auto-population Failure: Details of invalid invoices will not auto-populate into the supplier's GSTR-1 or the buyer's GSTR-2B, leading to mismatches and potential scrutiny.

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