India Imposes a New Time Limit to Report Invoices in the Invoice Registration Portals
The Goods and Services Tax Network (GSTN) issued an advisory, imposing a 30-day time limit for reporting invoices on the Invoice Registration Portals (IRPs).
The new time limit is expected to be implemented from November 1, 2023.
As per the advisory, taxpayers with an annual aggregated turnover (AATO) greater than or equal to INR 100 crores should ensure the generation of an e-invoice within 30 days of the invoice date. The 30-day time limit applies to all document types, including credit and debit notes. Taxpayers with an annual aggregated turnover of less than INR 100 crores are currently excluded from this requirement.
What will be the potential impact of this change?
- Taxpayers with an AATO of INR 100 crores or more should have a reliable e-invoicing system to avoid non-compliance, which may lead to penalties, fines, and loss of Input Tax Credit (ITC).
- Taxpayers should check with their vendors, suppliers, and e-commerce participants liable for issuing e-invoices and follow up to ensure they issue e-invoices within the specified time limit to avoid disputes related to ITC denial.