GSTN Advisory on time limit for reporting GST Invoices on IRP

The GST department has deferred the time limit of 7 days to report the old e-invoices on the e-invoice IRP portals by three months

The Goods and Services Tax Network (GSTN) recently issued an advisory on April 12, 2023, regarding the time limit for reporting invoices on the e-invoice IRP portals. This advisory has decided to impose a time limit of 7 days on reporting old invoices on the e-invoice IRP portals for taxpayers with Aggregate Annual Turnover (AATO) greater than or equal to 100 crores. Else Penalty will be imposed as follows:

On incorrect invoicing – Rs. 25,000 per invoice (for lack of IRN and signed QR code)
On non-generation of e-invoice – 100% of the tax due or Rs.10,000, whichever is higher, for every invoice.

This article will discuss the implications of the GSTN advisory and the steps that taxpayers can take to ensure compliance.

Introduction

The introduction of the Goods and Services Tax (GST) in India was a significant step towards a unified taxation system. Under the GST regime, taxpayers are required to register on the GSTN portal and file regular returns. In order to streamline the invoicing process, the government introduced the e-invoicing system in October 2020. The e-invoicing system enables taxpayers to generate invoices in a standardized format, which are then uploaded to the IRP portal for validation.

The e-invoice system has been a significant step towards reducing the burden of compliance on taxpayers. However, the GSTN has observed that some taxpayers are reporting invoices that are several months old. This practice can lead to errors in the invoicing process and can also make it difficult for the tax authorities to track transactions. In order to address this issue, the GSTN has issued an advisory on the time limit for reporting invoices on the e-invoice IRP portal.

Time limit for reporting GST invoices

To ensure timely compliance, the government has decided to set a deadline for reporting outdated invoices on the e-invoice IRP portals, and this advisory was issued to taxpayers with aggregate annual turnover (AATO) greater than or equal to 100 crores.

Taxpayers in this category will not be allowed to report invoices older than seven days on the date of reporting. It is important to note that this restriction only applies to the document-type invoice, and there will be no time restriction on reporting debit/credit notes.

For example, if an invoice has a date of May 1, 2023, it cannot be reported after May 8, 2023. The validation system built into the invoice registration portal will disallow the user from reporting the invoice after the 7-day window. Therefore, it is essential for taxpayers to ensure that they report the invoice within the 7-day window provided by the new time limit.

It is important to note that there will be no such reporting restriction on taxpayers with AATO less than 100 crores, as of now. This decision was made in order to provide sufficient time for taxpayers to comply with this requirement, which may require changes to their systems. The implementation of this time limit is proposed to begin from May 01, 2023, onwards.

This advisory has significant implications for taxpayers with AATO greater than or equal to 100 crores. They will need to ensure that they report their invoices within the stipulated 7-day window, failing which they may face penalties and interest charges.

Taxpayers in this category will need to ensure that their systems are updated to comply with this requirement. This may require changes to their invoicing processes, systems, and procedures. They will also need to ensure that they have sufficient resources and trained personnel to comply with this new requirement.

It is also important for taxpayers to ensure that they maintain accurate and complete records of their invoices and transactions. This will enable them to comply with this new requirement and avoid penalties and interest charges.

Conclusion

In conclusion, the GSTN advisory on the time limit for reporting invoices on the e-invoice IRP portals is a significant development for taxpayers with AATO greater than or equal to 100 crores. It is important for them to ensure that they comply with this new requirement and make the necessary changes to their systems and processes. By doing so, they can avoid penalties and interest charges and maintain compliance with the GST laws and regulations.