Mandatory E-Invoicing for Taxpayers

The Goods and Services Tax Network (GSTN) has introduced significant changes to the e-invoicing process in the GST system. Presently, taxpayers with an annual aggregate turnover exceeding Rs 5 crore are mandated to implement e-invoicing, necessitating the reporting of their B2B and export invoices, along with debit or credit notes, on designated Invoice Registration Portals (IRPs)

Revised Time Limits

The GSTN had initially released an advisory on April 13, 2023, outlining the time limits for reporting invoices on the e-invoice IRP portals. As per this advisory, taxpayers with PAN-based annual turnover equivalent to or exceeding Rs 100 crore were supposed to abide by a time restriction. Initially set to commence on May 1, 2023, these entities would have been restricted from generating Invoice Reference Numbers (IRN) beyond 7 days from the document’s date (e.g., tax invoice or debit/credit note).

Deferred Implementation

However, the enforcement of this Rs 100 crore turnover threshold was postponed by three months, providing businesses with additional time to adapt to the new requirements.

Stricter Time Limits from November 2023

A recent advisory from the National Informatics Centre has set new deadlines for e-invoice reporting. Starting from November 1, 2023, taxpayers with PAN-based annual turnovers of Rs 100 crore or more will have a tighter reporting window. They will be disallowed from generating IRNs after 30 days from the document’s date. Consequently, businesses falling within this category must ensure timely e-invoice generation to comply with the revised time limit, as the system’s in-built validation will prevent reporting beyond the 30-day timeframe.

Implications for Taxpayers

This change will have a considerable impact on businesses with high turnovers, necessitating meticulous adherence to the new e-invoicing regulations to avoid non-compliance penalties.