India Imposes a Time Limit to Report Invoices
The Goods and Services Tax Network (GSTN) issued an advisory, imposing a time limit for reporting invoices on the Invoice Registration Portals (IRPs). As per the advisory, taxpayers with an annual aggregated turnover (AATO) greater than or equal to INR 100 crores will have to ensure the generation of an e-invoice within seven days of the invoice date. Taxpayers with an annual aggregate turnover of less than INR 100 crores are currently excluded from this requirement.
We want to draw your attention to the fact that the GSTN issued an updated advisory stating that all document types for which an Invoice Registration Number (IRN) is to be generated must be reported within seven days of issuance. Thus corresponding debit notes and credit notes will also have to be reported within the time limit.
What is the timeline?
The new time limit was expected to be implemented from May 1, 2023, but India postponed implementing the time limit to report e-invoices.
What will be the potential impact of this change?
- Taxpayers in this category (AATO greater than or equal to INR 100 crores) should have a reliable e-invoicing system in place 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 time limit to avoid disputes related to ITC denial.
How can Fonoa help?
Fonoa provides the tools to generate and transmit e-invoices in a locally compliant format in countries that require it. Fonoa offers one centralized and standardized tax technology solution across the world, made specifically for businesses with high volumes and global reach.
Fonoa uses the most advanced technology in automated data cleansing as well as the validation and verification of tax data, reducing risk and minimizing the need for human intervention.