Effective April 1, 2025, businesses with an annual turnover of Rs.10 crores+ must report e-invoices within 30 days
This article delves into the details of the advisory, its implications, and how businesses can prepare for this upcoming change. Let explore the details under "Effective April 1, 2025, businesses with an annual turnover of Rs.10 crores+ must report e-invoices within 30 days"
Background:
In an earlier advisory dated September 13, 2023, a 30-day reporting time limit was introduced for taxpayers with an AATO of "Rs.100 crores and above". Building on this framework, the GSTN has now extended the 30-day restriction to cover businesses with an AATO of Rs.10 crores and above", thus expanding the scope of the rule to a broader segment of taxpayers.
Key Changes in the Advisory
Lower Threshold for Reporting Time Limit
From April 1, 2025, taxpayers with an AATO of Rs.10 crores and above must report e-Invoices on IRP portals within 30 days of the invoice date. This change applies to all document types that require the generation of an Invoice Reference Number (IRN), including:
- Invoices
- Credit Notes
- Debit Notes
Validation Mechanism on IRP Portals
IRP portals will have a built-in validation system that disallows reporting of e-Invoices exceeding the 30-day window. For instance:
- An invoice dated April 1, 2025, must be reported on or before April 30, 2025. Any attempt to report the invoice after the deadline will be blocked by the system.
Exemption for Lower Turnover Brackets
Businesses with an AATO of less than Rs.10 crores are exempt from this restriction as of now. However, they are encouraged to ensure timely reporting to avoid compliance issues in the future.
Implementation Timeline
To provide adequate time for businesses to align their processes with the new requirement, the advisory specifies that the new threshold and reporting limit will take effect from April 1, 2025.
Implications for Taxpayers
The revised advisory has several implications for businesses, especially those with an AATO between Rs.₹10 crores and Rs.100 crores. Some key considerations include:-
-Compliance Obligations: Taxpayers must ensure that e-Invoices are generated and reported within the stipulated 30-day window to avoid disruptions in business operations.
- Process Adjustments: Businesses may need to reevaluate their invoicing and reporting workflows, ensuring that invoices are uploaded promptly to the IRP portals.
- Penalties for Non-Compliance: Failure to report e-Invoices within the specified timeframe could result in non-compliance, leading to potential penalties and disruptions in claiming input tax credits.
Steps to Prepare for the New Requirements
To ensure a smooth transition to the new framework, businesses can adopt the following measures:
1. Review Internal Processes: Analyze existing invoicing practices to identify areas where delays occur and implement corrective actions.
2. Automate e-Invoicing: Invest in automated e-Invoicing solutions that integrate with IRP portals, ensuring timely reporting and compliance.
3. Train Staff: Conduct training sessions for finance and accounts teams to familiarize them with the new requirements and compliance timelines.
4. Monitor Compliance: Establish a system for monitoring compliance with the 30-day reporting rule to avoid last-minute challenges.
Conclusion
The lowering of the e-Invoice reporting threshold to Rs.10 crores and above is a significant step towards strengthening compliance under the GST framework. While it adds a layer of responsibility for taxpayers, it also encourages timely reporting and fosters greater transparency in the invoicing process.
Taxpayers are advised to proactively align their processes with the new requirements to avoid potential disruptions. By adopting robust systems and adhering to the 30-day reporting window, businesses can ensure seamless compliance with the GSTN’s evolving regulatory framework.
FAQs
1. Who is affected by this change?
Taxpayers with an Annual Aggregate Turnover (AATO) of Rs 10 crores and above.
2. When will the new rule come into effect?
The rule will be effective from April 1, 2025.
3. What happens if I fail to report an e-Invoice within 30 days?
The IRP portal will block the reporting of the invoice, potentially leading to compliance issues and penalties.
4. Are taxpayers with an AATO below ₹10 crores affected?
No, the reporting restriction does not currently apply to taxpayers with an AATO below Rs.10 crores.
5. What steps should businesses take to comply?
Businesses should streamline invoicing processes, adopt automation tools, train staff, and ensure timely reporting of e-Invoices.