New GST e-invoicing changes you need to be aware of; Details inside

As per the new advisory, the time frame of generating e-invoices for businesses with PAN-based Aggregate Annual Turnover (AATO) of Rs 100 crore has been revised.

The latest move by the GST Authority amends the older proposal of a 7-day time frame.

The e-invoicing system under GST was implemented in October 2020 for taxpayers with an aggregate turnover exceeding Rs 500 crore. Later, this was extended to businesses with turnover exceeding Rs 100 crore from January 2021. Earlier this year when companies with B2B transactions of Rs 5 crore were also mandated to produce an electronic invoice. The Central Board of Indirect Taxes and Customs tweeted about the change in the rule stating that GST taxpayers whose aggregate turnover stands more than Rs 5 crore in any financial year will have to mandatorily produce e-invoice from August 1, 2023.

In an advisory, GSTN communicated the time limits with respect to reporting invoices on the e-invoice IRP portals, with effect from May 1, 2023. As per the advisory, taxpayers with PAN-based annual turnover equivalent to or exceeding Rs 100 crore will be restricted from the generation of IRN after 7 days from the date of the document, that is the tax invoice or debit/credit note, whatever the case may be.

However, certain changes have been brought into these GST e-invoicing details with an extension in the time frame.

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New GST e-invoicing changes

The National Informative Centre has issued an advisory revising the time limits with respect to reporting the invoices on the e-invoice IRP portals. As per that, companies with PAN-based Aggregate Annual Turnover (AATO) of Rs 100 crore or more will not be permitted to generate IRN after 30 days from the date of the document.

Those falling within the ambit will need to generate their e-invoices as per the newly set time limit. After the 30-day tenure, the in-built validation system will not allow taxpayers to report the invoice on the IRPs. The advisory said, "It has been decided by the GST Authority to impose a time limit of 30 days for reporting of invoices from the date of invoice, on e-invoice portals. This time limit is applicable for taxpayers with AATO greater than or equal to 100 crores."

The provisions will be extended to all taxpayers if all goes well in the coming months. These have been introduced after taking note of certain concerns raised by businesses and will also ensure on-time tax payments.

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