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Published on:

April 5, 2025

Alankar Mishra

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Basics of GST

GST E-Invoicing Update: What Changed from April 1, 2025?

India is still working with the Goods and Services Tax (GST) system, with e-compliance taking the lead. To instill greater transparency, lower tax fraud, and create uniformity in invoice reporting by businesses, the Government introduced the GST e-invoicing system. In the beginning, the Government implemented the system for large enterprises and now mid-sized businesses are also covered. Over the years, the Government has gradually expanded the scope of e-invoicing.

We've recently examined the two main developments which, beginning April 1, 2025, have been introduced and affect a larger group of taxpayers. The first e-invoice change is that companies with an Annual Aggregate Turnover (AATO) equal to or greater than ₹10 Crore are now required to upload their e-invoices within a month of issuing them. The second change is that the 2-factor Authentication (2FA) system is now compulsory for all non-exempt GST-registered taxpayers, irrespective of turnover, to issue e-invoices and e-way bills.

What is GST E-Invoicing?

In a set integrated system known as GST, e-Invoicing is the process in which reports Business-to-Business (B2B) invoices in a specified format to an Invoice Registration Portal (IRP). This aids in the reduction of tax evasion, increases transparency, and allows for invoices to be tracked in real time.

Similar to the introduction of other contraptions, this came into existence in manners for companies with larger turnovers. The intention was to incorporate every business into the automated world of invoices gradually.

What’s New from April 1, 2025?

From April 1, 2025, significant changes concerning GST compliance for all business turnover levels will be implemented. The primary focus of these updates is to enhance security, increase the accuracy of data, and facilitate the on-time filing of taxes.

1. 30-Day Upload Rule for ₹10 Crore+ Businesses

Earlier, only businesses having an Annual Aggregate Turnover (AATO) exceeding ₹100 crore were required to upload e-invoices to the IRP within a 30-day window.

From April 1, 2025, this will be the case for all businesses with a turnover of ₹10 crore or more.

A missed deadline = non-compliance, and it may affect your GST returns and Input Tax Credit (ITC) claims.

2. Two-Factor Authentication for Everyone

In the past, 2FA (Two Factor Authentication - login confirmation using OTP or app)was not compulsory for everyone. Now, every taxpayer, irrespective of their turnover, shall mandatorily use 2FA for:

E-Invoice Generation

E-way bill Generation

This adds a layer of protection and minimizes the risk of fraudulent or unauthorized logins.

Why This Matters for Businesses

The new GST changes, set to begin on April 1, 2025, are more than just updates to regulations; they will fundamentally alter how businesses function on a day-to-day basis. Early action and unrestricted access are now imperative. Under the GST guidelines, failing to upload invoices to the IRP within 30 days renders them invalid.

As per GST rules, invoices will be non-compliant or invalid if they are not uploaded into the IRP past the 30-day mark.

The consequences are the loss of Input Tax Credit or a fine.

Two-factor authentication protects against security breaches but costs some convenience, as each login to the GST portal for invoice and e-way bill actions requires managing OTPs/tokens.

Conclusion

To boost transparency and minimize tax evasion, the GST Council is enforcing stricter compliance measures. From mid-size enterprises to large corporations, not updating the invoicing system or training the employees to comply with the new rules will cause financial and legal challenges.

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FAQs

What is GST e-invoicing and who needs to follow it?

Under the GST e-invoicing system, organisations submit B2B invoices to the Invoice Registration Portal (IRP) in a prescribed electronic format. It facilitates monitoring in real time and diminishes the chances of tax evasion. Effective from April 1, 2025, all enterprises with an annual turnover exceeding ₹10 crore are mandated to upload their e-invoices to the IRP within 30 days of generating the invoice.

What has changed in GST e-invoicing from April 1, 2025?

Two changes happened. The first one is that the new threshold of the 30-day limit for uploading e-invoices applies to businesses with a turnover of ₹10 crores instead of ₹100 crores. The second one is about Two-Factor Authentication (2FA). 2FA has been changed for all users; now, everyone, regardless of turnover, is required to use 2FA when forming e-invoices and e-way bills.

Is Two-Factor Authentication compulsory for everyone now?

Indeed. Effective April 1, 2025, all taxpayers registered for GST must implement Two-Factor Authentication (2FA) for logging into their accounts and generating e-invoices and e-way bills. This measure is meant to strengthen protection against abuse of reporting and invoice fraud.

What happens if a business misses the 30-day e-invoice upload deadline?

If a company neglects to upload their e-invoice to the IRP within 30 days starting from the invoice date, the invoice will be considered invalid per GST law. This would subsequently lead to the denial of Input Tax Credit to the purchaser and may result in penalties or GST return discrepancies.

Does the new rule apply to B2C invoices as well?

That's not true. The 30-day e-invoice upload rule only concerns B2B (Business-to-Business) invoices and some export invoices. They do not apply to B2C (Business-to-Consumer) transactions since e-invoicing does not include these types of transactions at this time.

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