Businesses With Over Rs 100 Cr Turnover Must Upload Electronic Invoices On IRP Within 7 days
Starting May 1, 2023, businesses in India with an annual turnover of Rs 100 crore or more will be required to upload their electronic invoices on the Invoice Registration Portal (IRP) within seven days of issuing the invoice, according to an advisory from GST Network (GSTN). Currently, businesses upload such invoices on the IRP on the date of issue of such an invoice, irrespective of the date of issue. However, to ensure timely compliance, the government has imposed a time limit on reporting old invoices on the e-invoice IRP portals for taxpayers with an annual turnover of Rs 100 crore or more.
The new format is being implemented to provide taxpayers with sufficient time to comply with this requirement. The restriction will apply only to invoices, and there will be no time restriction on reporting debit/credit notes, GSTN stated. The validation system built into the invoice registration portal will prevent users from reporting invoices after the seven-day window. Therefore, it is crucial for taxpayers to ensure that they report the invoice within the new time limit of seven days.
The GST law stipulates that businesses cannot claim input tax credit (ITC) if invoices are not uploaded on the IRP. This means that if a business fails to comply with the new time limit, it may not be able to claim input tax credit. The new format is expected to ensure that businesses comply with the GST regulations and avoid penalties.
GSTN explained that if an invoice is dated April 1, 2023, it cannot be reported after April 8, 2023, under the new time limit. The seven-day window is expected to ensure that businesses report invoices in a timely manner, enabling the government to track transactions and prevent tax evasion.
In conclusion, the new time limit for uploading electronic invoices on IRP for businesses with an annual turnover of Rs 100 crore or more is expected to promote timely compliance with GST regulations. The new format will ensure that businesses report invoices within seven days of issuing them, avoiding penalties and enabling them to claim input tax credit.
