New GST Rules From Today, Biz With Over Rs 100 Cr Turnover Must Know This

Starting from May 1st, companies with a turnover of Rs 100 crore or more are required to upload their electronic invoices on the Invoice Registration Portal (IRP) within 7 days of issuing the invoice, according to a statement by the GST Network. At present, businesses upload these invoices on the IRP on the day of issuance, regardless of when the invoice was issued.

GSTN Advisory

GST Network (GSTN) has issued an advisory stating that the government will enforce a time limit on reporting old invoices on the e-invoice IRP portals for taxpayers with an annual turnover of Rs 100 crore or more. Taxpayers in this category will be restricted to reporting invoices no older than seven days on the reporting date to ensure timely compliance. This new format will be implemented from May 1, 2023, to give taxpayers sufficient time to comply with the new regulation. The restriction applies to invoices only, and there will be no time limitation on reporting debit/credit notes. The invoice registration portal's validation system will prevent users from reporting invoices outside the seven-day window. The GSTN said that it is crucial for taxpayers to report invoices within the seven-day window provided by the new time limit as per GST law. Large companies can no longer backdate e-invoices after this technological change. The government is expected to implement these changes for all taxpayers in phases after successfully implementing them for large taxpayers, said AMRG & Associates Senior Partner Rajat Mohan.

Currently, electronic invoicing is mandatory for businesses with a turnover of Rs 10 crore and above for all business-to-business (B2B) transactions in India. According to Goods and Services Tax (GST) law, e-invoicing was initially made mandatory for companies with a turnover of over Rs 500 crore starting from October 1, 2020, and then extended to those with a turnover of over Rs 100 crore effective January 1, 2021. From April 1, 2021, companies with turnover of over Rs 50 crore were required to generate B2B e-invoices, and from April 1, 2022, the threshold was brought down to Rs 20 crore. The threshold was further reduced to Rs 10 crore from October 1, 2022.

Conclusion

As per the recent advisory by GST Network, companies with a turnover of Rs 100 crore and above must upload their electronic invoices on Invoice Registration Portal (IRP) within seven days of the issue of such invoice from May 1, 2023. Previously, businesses uploaded such invoices on IRP on the current date, irrespective of the date of issue of such invoice. The new time limit will help in administering compliances and is a step towards digitalization, according to EY Tax Partner Saurabh Agarwal.