The Goods and Services Tax Network (GSTN) has issued an important advisory on November 5th, 2024, regarding the reporting of e-Invoices on the Invoice Registration Portal (IRP). This change affects a wider group of taxpayers by lowering the Annual Aggregate Turnover (AATO) threshold for the mandatory 30-day reporting time limit, previously set at 100 crores, to now include those with AATO of 10 crores and above. Here’s what you need to know.
Key Changes and Implementation Date
- Threshold Reduction: Effective from April 1, 2025, taxpayers with an AATO of 10 crores and above will be subject to a strict 30-day time limit for reporting e-Invoices on the IRP. This new rule lowers the previous threshold of AATO 100 crores, extending the requirement to a larger base of taxpayers.
- Applicable Document Types: The restriction will apply to all document types, including Invoices, Credit Notes, and Debit Notes, for which an Invoice Reference Number (IRN) needs to be generated.
Practical Implications
- Example: If an invoice is dated April 1, 2025, it must be reported on the IRP by April 30, 2025. If the taxpayer attempts to report it beyond this 30-day window, the system will block the reporting due to built-in validations.
- Compliance Requirement: Businesses need to ensure that their internal accounting and invoicing processes are streamlined to avoid delays. Prompt reporting will be necessary to stay compliant with this new regulation.
Exemptions and Current Status
- No Change for Lower Turnover: As of now, there is no reporting restriction for taxpayers with an AATO below 10 crores. They can continue to report their e-Invoices without the 30-day limitation.
- Grace Period: The policy has been announced in advance to give taxpayers adequate time to adjust their systems and processes before the new rules come into effect on April 1, 2025.
Advisory Summary
The introduction of the 30-day reporting limit for e-Invoices aims to enhance the efficiency and accuracy of data reporting within the GST system. As this update will significantly impact taxpayers with AATO of 10 crores and above, it is crucial for affected businesses to begin planning their compliance measures now. Ensuring timely submission will prevent disruptions and non-compliance issues once the policy is enforced.
For more details on the advisory, visit the official e-Invoice website: e-Invoice News and Updates.
Thanks,
Team GSTN
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