Tax Compliance Guide
India's 2026 GST Changes: A Founder's Compliance Checklist
Mandatory e-invoicing now applies at a ₹5 crore turnover threshold, invoice numbering resets every April, and ITC matching just got stricter. Here's what changed and what to check.
India's GST rules tightened further for 2026, with several changes that specifically affect scaling startups and exporters.
E-invoicing threshold drops to ₹5 crore
Mandatory e-invoicing now applies to all businesses with Aggregate Annual Turnover (AATO) of ₹5 crore or more, effective April 1, 2026 — based on turnover in any financial year from FY 2017-18 onwards, not just the current year.
Invoice numbering resets
Businesses must start a fresh invoice numbering series from April 1 each year. Carrying over the previous year's series risks reconciliation problems and can trigger system errors during return filing.
Reporting and ITC changes
Businesses with turnover above ₹10 crore must report invoices to the IRP within 30 days. Input Tax Credit matching requirements are also stricter under the 2026 rules, with closer scrutiny of ITC claims.
LUT filing for exporters
Businesses exporting or supplying to SEZs without paying IGST must file a fresh Letter of Undertaking every financial year — the previous year's LUT expires automatically on March 31.
Sources
ClearTax: GST Changes from 1st April 2026, GimBooks: ₹5 Crore E-Invoice Turnover Rule 2026, IncorpX: New GST Rules 2026.
Frequently asked questions
It's based on Aggregate Annual Turnover (AATO) in any financial year from FY 2017-18 onwards — once a business crosses ₹5 crore in any year, e-invoicing obligations apply going forward, not just if it crosses the threshold in the current year.
It risks reconciliation issues and can trigger system errors during GST return filing — the compliance guidance is explicit that businesses must start a fresh series each April 1.