The Rule 46(s) Declaration: Proving E-Invoicing Does Not Apply

Rule 46 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.

A buyer receives an invoice from a large supplier with no QR code and no IRN. Is the supplier exempt, or has it simply failed to comply?

Rule 46(s) makes the supplier answer that on the face of the document.

Rule 46(s), inserted by Notification No. 14/2022-CT dated 05.07.2022, requires a declaration on every invoice issued other than in the manner specified under Rule 48(4), by a taxpayer whose aggregate turnover in any preceding financial year from 2017-18 onwards is more than the turnover notified under Rule 48(4): "I/We hereby declare that though our aggregate turnover in any preceding financial year from 2017-18 onwards is more than the aggregate turnover notified under sub-rule (4) of rule 48, we are not required to prepare an invoice in terms of the provisions of the said sub-rule."

When it applies

Three conditions, all of which must be present:

1. The supplier's aggregate turnover in any preceding financial year from 2017-18 onwards exceeds the notified limit. Note "any" — once crossed in any year, the applicability test is met permanently. A supplier whose turnover crossed the limit in FY 2019-20 and has since fallen below it is still within the test.

2. The invoice is issued other than under Rule 48(4) — that is, without an IRN.

3. The supplier is nonetheless not required to generate one.

Where all three hold, the declaration goes on the invoice.

The situations it covers

An exempted class of supplier. The proviso to Rule 48(4) allows exemption of a person or class of registered persons. The notified exempted classes include insurers, banking companies and financial institutions including NBFCs, goods transport agencies, passenger transport suppliers, multiplex cinema operators, SEZ units, government departments and local authorities.

Such a supplier may have very large turnover and still, correctly, issue invoices without IRNs. The declaration explains it.

A B2C invoice. E-invoicing applies to B2B, SEZ and export supplies. A covered supplier issuing a B2C invoice does not generate an IRN — and on the wording of clause (s), the declaration is required there too, since the invoice is issued other than under Rule 48(4).

A document outside the e-invoicing scope. A bill of supply, a delivery challan or a voucher is not an invoice under Rule 48(4). The declaration requirement attaches to invoices.

Why the buyer should care

Because Rule 48(5) makes a covered supplier's non-IRN invoice not an invoice at all, and the buyer's credit fails at s.16(2)(a). An invoice without an IRN →

Faced with a large supplier's invoice bearing no QR code, the buyer has three possibilities:

• the supplier is below the threshold — check its turnover profile;
• the supplier is in an exempted class — the declaration should say so;
• the supplier is non-compliant — and the credit is at risk.

The declaration converts an unanswerable question into a documented representation. That is its whole function.

Practical handling

For suppliers:

• Determine applicability once, on the "any preceding year from 2017-18" test, and record the conclusion.
• Where an exempted class applies, configure the declaration as standing text on the invoice template.
• Where the supplier is covered, ensure every B2B, SEZ, export, credit note and debit note carries an IRN, and reserve the declaration for B2C invoices.
• Do not use the declaration to paper over a failure. A false declaration is a misdeclaration on a statutory document.

For buyers:

• Add a check to the invoice acceptance process: large supplier, no QR code, no declaration → query before payment.
• Where the declaration is present, retain the invoice — it is the buyer's evidence of having made the enquiry.
• Where the supplier claims an exempted class, record which class.

Key takeaways

• Rule 46(s) requires a declaration where a supplier above the notified turnover in any year from 2017-18 issues an invoice without an IRN.
• The declaration text is prescribed and should be reproduced verbatim.
• It covers exempted classes and B2C invoices issued by covered suppliers.
• Applicability is tested on any preceding year, so it does not lapse when turnover falls.
• For buyers, the declaration is the answer to why there is no QR code.
• A false declaration is a misdeclaration on a statutory document.

Read next

• Rule 48(5): An Invoice Without an IRN Is Not an Invoice
• Rule 46: Every Particular a Tax Invoice Must Carry
• E-Invoice Applicability: Turnover Threshold and History
• QR Code on B2C Invoices: When Required

Disclaimer: Positions stated as on 5 September 2026, based on the CGST Rules as amended to 31 March 2026 (ICAI Bare Law, 12th edition) and the ICAI Handbook on Invoicing under GST (2025).