E invoice-1
This query is : Resolved
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?
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?
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.
Turnover is below ₹3 crore, and
GSTIN is different,
because the PAN (HUF) had crossed the prescribed turnover limit in an earlier financial year.
04 February 2026
What is non compliance of E invoice provision under GST Act explain with Section and penalty liable under which section ?
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.
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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