E-Invoice applicability related question

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Discussion is about whether e-invoicing is applicable for a client with 4.5 crore taxable turnover and 5.31 crore total invoice value. Clarification: AATO excludes GST, so only taxable turnover is considered. Since it is below 5 crore threshold, e-invoicing is not mandatory for FY 2025-26.

deepak

deepak (Querist)
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26 March 2026 Our client Annual taxable turnover is 4,50,00,000 ( excluding GST) for the financial year 2025-26. and GST amount is 81,00,000. Total value of invoice is 5,31,00,000. Query is that in our case E-INVOICE is mandatory or not? As per defination of AATO, Total invoice value will be considered or Only Taxable amount value will be considered for E-INVOICE Applicability??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 March 2026 The Aggregate Annual Turnover (AATO) is calculated based on the taxable value, not the total invoice value including GST.
What is Included in AATO:
Total value of all taxable supplies (excluding GST).
Exempt supplies.
Exports of goods or services.
Inter-state supplies under the same PAN.
What is Excluded from AATO:
GST Amount: Central tax (CGST), State tax (SGST), Integrated tax (IGST), and Cess are strictly excluded from the turnover calculation.
Inward supplies liable to tax under the Reverse Charge Mechanism (RCM).

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 March 2026 Based on the current GST rules for the financial year 2025-26, e-invoicing is not mandatory for your client if their turnover remains at ₹4.5 crore, assuming their turnover does not cross the ₹5 crore threshold by the end of the year and has not crossed it in any previous financial year since 2017-18.

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