As per GST legislation, companies can’t avail enter tax credit score (ITC) if invoices are usually not uploaded on the IRP.
Currently, companies add such invoices on Invoice Registration Portal (IRP) on the present date, regardless of the date of difficulty of such bill.
Businesses with turnover of Rs 100 crore and above should add their digital invoices on IRP inside 7 days of the problem of such bill with impact from May 1, GST Network has stated.
Currently, companies add such invoices on Invoice Registration Portal (IRP) on the present date, regardless of the date of difficulty of such bill.
In an advisory to taxpayers, GST Network (GSTN) stated the federal government has determined to impose a time restrict on reporting previous invoices on the e-invoice IRP portals for taxpayers with combination annual turnover better than or equal to Rs 100 crore.
“To guarantee well timed compliance, taxpayers on this class is not going to be allowed to report invoices older than 7 days on the date of reporting,” GSTN said.
In order to provide sufficient time for taxpayers to comply with this requirement, this new format would be implemented from May 1, 2023.
This restriction will apply to bill, and there can be no time restriction on reporting debit/credit score notes, it added.
Giving example, the GSTN said if an invoice has a date of April 1, 2023, it cannot be reported after April 8, 2023.
The validation system built into the invoice registration portal will disallow the user from reporting the invoice after the 7-day window.
Hence, it is essential for taxpayers to ensure that they report the invoice within the 7-day window provided by the new time limit, the GSTN said.
As per GST law, businesses cannot avail input tax credit (ITC) if invoices are not uploaded on the IRP.
AMRG & Associates Senior Partner Rajat Mohan said this technological change would arrest backdating of e-invoices by large companies.
“After successfully implementing this for large taxpayers, government is expected to roll out these changes for all taxpayers in a phased manner,” Mohan added.
Currently, companies with turnover of Rs 10 crore and above are required to generate digital bill for all B2B transactions.
Under Goods and Services Tax (GST) legislation, e-invoicing for business-to-business (B2B) transactions was made necessary for corporations with turnover of over Rs 500 crore from October 1, 2020, which was then prolonged to these with turnover of over Rs 100 crore efficient January 1, 2021.
From April 1, 2021, corporations with turnover of over Rs 50 crore have been producing B2B e-invoices, and the brink was introduced all the way down to Rs 20 crore starting April 1, 2022. From October 1, 2022, the brink was additional lowered to Rs 10 crore.
EY Tax Partner Saurabh Agarwal stated implementation of timelines for reporting invoices on IRP would assist in administering compliances and is an one other nice transfer in direction of digitalisation.
“This may help in growing the GST assortment as soon as the stated restrict of Rs 100 crore turnover is decreased considerably or is made necessary for all assesses required to generate IRN (Invoice Registration Number),” Agarwal stated.
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