The turnover limit for reporting old invoices on e-invoice IRP portals reduced!

In a move that has significant implications for businesses using the e-invoice system in India, GSTN has issued an advisory on lowering the turnover criteria for reporting old invoices on the e-invoice IRP portals. This change, aimed at streamlining the invoicing process and enhancing compliance, requires businesses with a lower turnover to report their historical invoices within a shorter time frame. The updated guidelines are expected to impact how companies manage their invoicing and GST reporting, as they now have a stricter deadline to meet when submitting older invoices to the e-invoice system. Let’s understand the changes!

GST Advisory dated 5^th November 2024

Advisory: Time Limit for Reporting e-Invoice on the IRP Portal – Lowering of Threshold to AATO 10 Crores and Above

Nov 5th, 2024

Dear Taxpayers,

1. Regarding the earlier advisory dated 13th September 2023 (https://einvoice.gst.gov.in/einvoice/newsandupdates/read-602), where a time limit of 30 days for reporting e-Invoices on IRP portals for taxpayers with an AATO of 100 crores and above was implemented, the threshold has now been lowered to cover taxpayers with an AATO of 10 crores and above.

2. Therefore, from 1st April 2025, taxpayers with an AATO of 10 crores and above would not be allowed to report e-Invoices older than 30 days from the date of reporting on IRP portals.

3. This restriction would apply to all document types (Invoices/Credit Notes/Debit Notes) for which an IRN is to be generated.

4. For example, if an invoice is dated 1st April 2025, it cannot be reported after 30th April 2025. The validation built into the invoice registration portals (IRP) would disallow the user from reporting the E-Invoice after the 30-day window. Hence, taxpayers need to ensure that they report the E-Invoice within the 30-day window provided by the new time limit.

5. It is further clarified that there would be no such reporting restriction on taxpayers with an AATO of less than 10 crores as of now.

6. To provide sufficient time for taxpayers to comply with this requirement, the above limit would come into effect from 1st April 2025 onwards.

Thanks,
Team GSTN

Key Highlights of the advisory

• Lowered Reporting Threshold: The time limit for reporting e-Invoices on IRP portals within 30 days will be applicable to taxpayers with an Aggregate Annual Turnover (AATO) of 10 crores and above, down from the earlier threshold of 100 crores.
• Effective Date: Starting 1st April 2025, taxpayers with an AATO of 10 crores or more must report E-Invoices, Credit Notes, and Debit Notes within 30 days from the invoice date.
• Strict Compliance Deadline: Invoices older than 30 days will not be accepted by the IRP portal, ensuring stricter adherence to reporting timelines.
• No Impact on Smaller Taxpayers: The 30-day reporting restriction will not apply to taxpayers with an AATO below 10 crores at present.
• Action Required: Taxpayers affected by this change must align their invoicing and reporting processes to meet the new time limits before the deadline kicks in on 1st April 2025.

Conclusion

The recent reduction in the threshold for e-invoice reporting to an AATO of 10 crores marks an important shift in the government’s efforts to tighten compliance and streamline the GST ecosystem. With the new 30-day reporting window for taxpayers falling within this threshold, businesses must now be more diligent in submitting their invoices, credit notes, and debit notes promptly to avoid penalties and disruptions. While the changes will not impact smaller taxpayers (AATO under 10 crores) for now, businesses with larger turnovers need to prepare for the April 2025 implementation date by optimizing their invoicing processes and ensuring timely reporting on the IRP portal. 

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