E-invoicing in 2026: the rules a small business should check

A guide published by Tally Solutions in September 2026 sets out where e-invoicing compliance stands. The points that matter to smaller businesses:

• Who must e-invoice: businesses whose aggregate annual turnover has crossed ₹5 crore in any financial year since 2017-18, even if turnover is lower now.
• 30-day limit: for businesses with turnover of ₹10 crore or more, the invoice portal rejects invoices, debit notes and credit notes dated more than 30 days earlier.
• Two-step login: two-factor authentication has been required for all taxpayers since 1 April 2025, whatever their turnover.
• Penalty: failing to generate a required e-invoice can cost ₹10,000 or the tax amount involved, whichever is higher.

What to do

If you are close to the ₹5 crore mark, confirm with your accountant whether you have ever crossed it. Then check that your billing or accounting software can generate e-invoices directly, so you are not keying them into the government portal by hand.

See accounting and GST software