- April 13, 2023
- Posted by: Pravinjana Consultants
- Category: What's New
According to a recent advisory by the GST Network (GSTN), businesses with an annual turnover of Rs. 100 crore or more must upload their electronic invoices on the Invoice Registration Portal (IRP) within 7 days of the invoice date, effective from May 1st. Currently, businesses are allowed to upload invoices on the IRP on the date of their choice, regardless of the invoice date. Furthermore, the GSTN has also announced that the government will impose a time limit for reporting old invoices on the e-invoice IRP portals for taxpayers with an annual turnover of Rs. 100 crore or more. Stay updated with the latest developments to ensure compliance with the new regulations.
“To ensure timely compliance, taxpayers in this category will not be allowed to report invoices older than 7 days on the date of reporting,” GSTN said.
This restriction will apply to invoice, and there will be no time restriction on reporting debit/credit notes, it added. Giving example, the GSTN said if an invoice has a date of April 1, 2023, it cannot be reported after April 8, 2023. The validation system built into the invoice registration portal will disallow the user from reporting the invoice after the 7-day window. Hence, it is essential for taxpayers to ensure that they report the invoice within the 7-day window provided by the new time limit, the GSTN said. As per GST law, businesses cannot avail input tax credit (ITC) if invoices are not uploaded on the IRP. AMRG & Associates Senior Partner Rajat Mohan said this technological change would arrest backdating of e-invoices by large companies. “After successfully implementing this for large taxpayers, government is expected to roll out these changes for all taxpayers in a phased manner,” Mohan added. Currently, businesses with turnover of Rs 10 crore and above are required to generate electronic invoice for all B2B transactions.
Under Goods and Services Tax (GST) law, e-invoicing for business-to-business (B2B) transactions was made mandatory for companies with turnover of over Rs 500 crore from October 1, 2020, which was then extended to those with turnover of over Rs 100 crore effective January 1, 2021. From April 1, 2021, companies with turnover of over Rs 50 crore were generating B2B e-invoices, and the threshold was brought down to Rs 20 crore beginning April 1, 2022. From October 1, 2022, the threshold was further lowered to Rs 10 crore. EY Tax Partner Saurabh Agarwal said implementation of timelines for reporting invoices on IRP would help in administering compliances and is an another great move towards digitalisation. “This may also aid in increasing the GST collection once the said limit of Rs 100 crore turnover is reduced significantly or is made mandatory for all assesses required to generate IRN (Invoice Registration Number),” Agarwal said.