Is e-billing mandatory for your business in Nepal?
4 min read ·
If you've asked someone at IRD this question and walked away more confused than when you went in, you're not alone. There are actually two different questions hiding inside "do I need e-billing" — and IRD staff often answer the one you didn't ask.
Question one: how do you get permission to issue electronic bills?
This part is genuinely the same for everyone. Whether your shop does ten lakh or ten crore a year, the process to get IRD's permission to use e-billing software is identical: your software provider lists their product with IRD once, then you personally apply for permission to use it, and IRD inspects your setup before issuing that permission. Nepal's e-billing procedure defines who this applies to as anyone in business — "with or without a PAN" — so the mechanics of applying don't change based on your size.
Question two: are you legally required to do this at all?
This is the one that actually depends on your business. The mandatory threshold is set separately, under the VAT Act, and it's been moving: it was Rs 25 crore in annual turnover a few years ago, dropped to Rs 20 crore in April 2026, and dropped again to Rs 10 crore under the current fiscal year's budget. If your turnover crosses that figure, e-billing through IRD's central monitoring system (CBMS) isn't optional. Below it, it's currently not required — though given how often this number has moved recently, "currently" is doing real work in that sentence.
Does this only apply to VAT-registered businesses?
The mandate is built into VAT law specifically, so it's tied to VAT-registered businesses, not every PAN holder. In practice this distinction rarely matters: a business large enough to cross a 10 crore turnover threshold is almost always already required to be VAT-registered anyway, well before it gets anywhere near that number.
What this means for you
If you're below the threshold, you're not required to connect to CBMS — but you can still issue proper, compliant VAT or PAN bills without it. If you're near or above it, this isn't a "get to it eventually" item; IRD inspects your setup before granting permission, and that's not a same-day process.
Either way, don't take a verbal answer from a counter conversation as the final word on where your specific business stands — the threshold changes often enough that it's worth getting your current obligation confirmed in writing, and then choosing software that's ready either way.
A note on CBMS timing
IRD inspects your billing setup before granting CBMS permission. That process takes time. If you're approaching the threshold, start the application process before you cross it — not after. The inspection queue doesn't move faster because your turnover just hit the limit.
Srota RMS and Srota IMS are IRD-listed and CBMS-ready — on from day one if you're required to connect, off if you're not, without switching systems later.
IRD-listed and CBMS-ready from day one
Both Srota RMS and Srota IMS are listed with IRD. When your business is required to connect to CBMS, no system switch needed.
