GSTN defers e-invoice reporting time limit by 3 months for businesses with turnover of ₹100 crore

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

Goods and Services Tax Network (GSTN) has deferred the circular that imposes a timeline for businesses with a turnover of ₹100 crore and above to upload e-invoices on the Invoice Registration Portal (IRP) within 7 days of issue by 3 months. As per GST norms, businesses cannot avail input tax credit (ITC) if invoices are not uploaded on the IRP.

April Circular for E-invoice Timeline Deferred by GSTN

In April, GSTN had mandated businesses to upload e-invoices on the IRP within 7 days of issue, starting from May 1. However, in an advisory to taxpayers on May 6, GSTN deferred the imposition of the time limit by three months for taxpayers with an aggregate turnover greater than or equal to ₹100 crore.

Text Message Filing Option for Businesses without Cash Tax Outgo

GSTN has also advised businesses without cash tax outgo to file their returns via text messages, especially those that report nil tax returns or use input tax credits to offset their liability. This comes in light of the last return filing cycle on April 20, where close to a million GST-registered businesses filed 'nil' returns, leading to a slowdown in the system.

Apprehensions among Large Businesses Over E-invoice Requirement

Senior Partner at AMRG & Associates, Rajat Mohan, has highlighted the confusion among even large businesses over the new requirement to issue e-invoices within 7 days of the invoice date. Concerns were mounting due to additional entries posted due to year-end charges originating from auditor recommendations and annual reconciliations. However, large businesses now have an extension of three months to ensure the smooth implementation of the new provisions.

With the deferment of the e-invoice timeline, businesses with a turnover of ₹100 crore and above can breathe a sigh of relief. However, it is important for all businesses to ensure timely compliance with GST norms to avail input tax credit and avoid penalties.

Conclusion

The GSTN has deferred the circular that imposes a timeline for businesses with a turnover of ₹100 crore and above to upload e-invoices on the Invoice Registration Portal (IRP) within 7 days of issue by 3 months. This comes as a relief to businesses, especially large ones that were facing confusion and apprehensions over the new requirement. Additionally, GSTN has advised businesses without cash tax outgo to file their returns via text messages to ensure timely compliance with GST norms. It is important for all businesses to comply with the new provisions to avail input tax credit and avoid penalties.