The GST Authority has implemented a substantial reform that directly affects taxpayers, particularly for businesses with an aggregate annual turnover equal to or higher than ₹ 100 crores. The change is intended to simplify and control the reporting of invoices on e-invoice portals. In light of the concerns voiced by businesses, the GST Authority has decided to modify the seven-day time restriction that was originally proposed. The Goods and Services Tax (GST) system now has a 30-day reporting window for businesses in India with aggregate annual revenue of and above ₹100 crore. On September 11, 2023, the National Informatics Centre (NIC)[1] issued an advisory on the new 30-day deadline for submitting bills via the Invoice Registration Portal (IRP).
What do you mean by invoices?
A GST invoice is a declaration or receipt for products or services that a business or service provider has provided to a client. It accurately specifies the products and services, as well as the total amount due. The pricing for the products or services can be discovered on a GST invoice before CGST and SGST are applied.
What is an e-invoicing portal?
For the purpose of submitting all B2B invoices to the Invoice Registration Portal (IRP), GST-registered individuals must use the e-invoice System. An individual Invoice Reference Number digitally signed e-invoice, and QR code is generated and provided to the user by the IRP.
What is the GST E-Invoice System?
The Indian government implemented the GST e-invoice system in 2020, intending to streamline the process of invoicing for businesses and reduce fraud related to taxes. In accordance with this system, some taxpayer categories are obliged to produce invoices on the Invoice Registration Portal (IRP) in an electronic and standardized format. Each e-invoice is given a distinct Invoice Reference Number (IRN) and QR Code by the IRP, which is then electronically uploaded to the GST and e-way bill portals to avoid the need for repeated data entry. The technology is intended to increase the invoicing process’ accuracy, efficiency, and transparency while lowering the chance of mistakes and fraud.
New GST regulations for businesses with a turnover of over ₹100 crores
A new time limit has been announced for the reporting of invoices by the National Informatics Center on the Invoice Registration Portal as an advisory. This new time limit will take effect from November 1st, 2023. The Goods and Services Tax (GST) Authority has established a thirty-day deadline for the reporting of the invoices on the e-invoice portal starting from the date of invoice. So, for example, if the date of the invoice is the 1st of April, then the invoice cannot be reported after the 30th of April. Similarly, if the date of issue is the 1st of November 2023, then the invoice cannot be notified after the 30th of November 2023.
All the taxpayers who have an average annual turnover of more than or equivalent to ₹ 100 crore will be subject to these new regulations relating to the time limit for reporting the invoices on the portal. As a result, all taxpayers will not be permitted to report any invoices that are more than thirty days old as of the reporting date. All the documents for which IRNs are to be produced will be subject to this new limitation. As a result, the Debit/Credit note must also be recorded within 30 days of the issuance date. The enforcement of the time limit by the taxpayers is to be strictly done. Failure to adhere to the time limit for reporting invoices can result in non-compliance issues and penalties.
Who must comply with the e-invoicing time limit?
The new time restriction of 30 days must be followed by all taxable enterprises with an aggregate annual turnover of ₹ 100 crore or higher. The deadline is for reporting the tax invoices, along with the other documents like debit notes, credit notes, and any other documents as required before the completion of 30 days from the date of issuance. However, taxpayers with an annual turnover of less than ₹100 crore are exempt from the regulation or validation for the time being.
Merits of these new regulations pertaining to the time limits for reporting of invoices
- Transparency and enhanced compliance: With guidelines like these, businesses will have to strictly follow the regulations laid down by the GST authorities. These types of stricter requirements for compliance will enhance the transparency as well as the compliance of all the rules and regulations related to reporting of invoices as well as GST.
- A streamlined process for all filing and payment procedures: The main aim of implementing the goods and service tax system in India was to eliminate the complex and burdensome indirect tax system that was in practice. Guidelines on time limits for the reporting of the invoices will further assist in making a streamlined process for not only filing but the payment process under the GST as well.
Advisory on the New Time Limit
Conclusion
In conclusion, for taxpayers with an annual aggregate turnover of ₹100 crores or more, the imposition of a 30-day time restriction for submitting invoices on e-invoice portals marks a substantial shift in the GST compliance environment. This action is intended to improve reporting process efficiency and transparency by ensuring that invoices are submitted on time. Taxpayers who fall under the relevant annual aggregate turnover category should pay close attention to this development and modify their internal procedures, as failure to adhere to this revised deadline may result in fines and compliance problems.
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