Businesses with turnover of 100 crore and above must add their digital invoices on IRP inside 7 days of the problem of such bill with impact from May 1, GST Network has mentioned.
Currently, companies add such invoices on Invoice Registration Portal (IRP) at the present date, without reference to the date of factor of such bill.
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In an advisory to taxpayers, GST Network (GSTN) mentioned the federal government has determined to impose a point in time on reporting previous invoices at the e-invoice IRP portals for taxpayers with mixture annual turnover more than or equivalent to 100 crores.
“To ensure timely compliance, taxpayers in this category will not be allowed to report invoices older than 7 days on the date of reporting,” GSTN mentioned.
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In order to supply enough time for taxpayers to agree to this requirement, this new layout can be carried out from May 1, 2023.
This restriction will follow to invoices, and there will likely be no time restriction on reporting debit/credit score notes, it added.
Giving instance, the GSTN mentioned if an bill has a date of April 1, 2023, it can’t be reported after April 8, 2023.
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The validation machine constructed into the bill registration portal will disallow the consumer from reporting the bill after the 7-day window.
Hence, it is very important for taxpayers to be sure that they record the bill throughout the 7-day window supplied through the brand new point in time, the GSTN mentioned.
As according to GST regulation, companies can not avail enter tax credit score (ITC) if invoices don’t seem to be uploaded at the IRP.
AMRG & Associates Senior Partner Rajat Mohan mentioned this technological alternate would arrest backdating of e-invoices through huge corporations.
“After successfully implementing this for large taxpayers, government is expected to roll out these changes for all taxpayers in a phased manner,” Mohan added.
Currently, companies with turnover of 10 crore and above are required to generate digital bill for all B2B transactions.
Under Goods and Services Tax (GST) regulation, e-invoicing for business-to-business (B2B) transactions was once made necessary for corporations with turnover of over 500 crore from October 1, 2020, which was once then prolonged to these with turnover of over 100 crore efficient January 1, 2021.
From April 1, 2021, corporations with turnover of over 50 crore have been producing B2B e-invoices, and the edge was once introduced all the way down to 20 crore starting April 1, 2022. From October 1, 2022, the edge was once additional decreased to 10 crores.
EY Tax Partner Saurabh Agarwal mentioned implementation of timelines for reporting invoices on IRP would assist in administering compliances and is any other nice transfer against digitalisation.
“This may also aid in increasing the GST collection once the said limit of 100 crore turnover is reduced significantly or is made mandatory for all assesses required to generate IRN (Invoice Registration Number),” Agarwal mentioned.