E-invoicing is mandatory for all businesses with aggregate turnover of more than Rs.500 crore from October 1, 2020. This was subsequently made applicable to businesses with an aggregate turnover of more than Rs. 10 crores, phase by phase.
The Invoice Registration Portal assigns an identity number (IRN) to each invoice in the electronic invoicing system (IRP). As of today, the IRP allows the generation of E-invoices for the previous financial year as well.
To regulate the practice, the Goods and Services Tax Network (GSTN) issued an Advisory on the time limit for Reporting Invoices on the IRP Portal on April 13, 2023.
New E-Invoicing limit
𝐄-𝐈𝐧𝐯𝐨𝐢𝐜𝐢𝐧𝐠 is now 𝐚𝐩𝐩𝐥𝐢𝐜𝐚𝐛𝐥𝐞 from 1st Aug 2023 for businesses whose 𝐭𝐮𝐫𝐧𝐨𝐯𝐞𝐫 𝐞𝐱𝐜𝐞𝐞𝐝𝐬 𝐑𝐬 𝟓 𝐜𝐫𝐨𝐫𝐞𝐬 in any of the financial year commencing from 2017-18.
New Time limit for Reporting of Invoices on the IRP Portal
The GST Authority has introduced a 30-day time limit for reporting invoices from the date of issuance, effective from November 1st, 2023.
This mandate applies to taxpayers with an Aggregate Annual Turnover (AATO) equal to or exceeding 100 crores. It means that invoices older than 30 days from the date of reporting will not be accepted.
This time restriction covers all document types that require IRNs, including Credit and Debit notes. For instance, if an invoice is dated November 1, 2023, it must be reported by November 30, 2023.
The gist of the advisory is as follows:
- For taxpayers with AATO greater than or equal to 100 crores, the government shall impose a time limit on reporting old invoices on the E-Invoice IRP portals.
- This category of taxpayers will not be able to record invoices that are more than 7 days old on the day of reporting.
- This restriction will apply to all document types for which IRN is to be generated. As a result, once issued, the credit / debit note must also be reported within 7 days.
- For example, if an invoice has a date of April 1, 2023, it cannot be reported after April 8,2023. The validation system integrated into the IRP will prevent the user from reporting the invoice after the 7-day window.
- As a result, taxpayers must ensure that they report the invoice within the 7-day window allowed by the new time limit.
- As of now, taxpayers having an AATO of less than 100 crores will face no reporting restrictions.
- The changes are scheduled to take effect on May 1, 2023.
Deferment of Implementation of Time Limit on Reporting Old E-Invoices
The competent authority has decided to postpone the imposition of time limit of 7 days on reporting old E-Invoices on the E-Invoice IRP portals for taxpayers with aggregate turnover greater than or equal to 100 crores by three months.
The next date of implementation will be shared in due course of time.
As a result, it is critical for businesses to prepare and set up a system that complies on time and avoids any type of delay.
LogiTax, helps you overcome these challenges and simplifies the E-Invoicing process. It offers features like bulk & real-time E-Invoice generation, automated data validation, auto reporting to NIC portal, and seamless transmission of invoices among others, that can save time and improve accuracy. By adopting LogiTax, businesses can reap the benefits of E-Invoicing while also minimizing the risk of errors and delays.
The information provided in this presentation does not constitute legal opinion or advice. Readers are requested to seek formal legal advice prior to acting upon any of the information provided herein. This presentation is not intended to address the circumstances of any particular individual or corporate body. There can be no assurance that the judicial/ quasi-judicial authorities may not take a position contrary to the views mentioned herein.