Businesses with AATO of ₹10 Cr and above Must Report e-Invoices Within 30 Days

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Starting from 1st April 2025, taxpayers with an AATO of 10 crores and above cannot report e-Invoices (Invoices/Credit Notes/Debit Notes) older than 30 days on IRP portals. An invoice dated 1st April 2025 must be reported no later than 30th April 2025.

Let’s dive into the topic deeply.

In a major step to enhance compliance and streamline the e-invoicing system under GST, the Goods and Services Tax Network (GSTN) has implemented a time restriction for reporting e-invoices on Invoice Registration Portals (IRP). Effective from April 1, 2025, this revision reduces the turnover threshold from 100 Crores to 10 Crores in Annual Aggregate Turnover (AATO).

Key Highlights of the Advisory:

Previous Restriction for Businesses with 100+ Crore AATO

In an advisory dated September 13, 2023, GSTN introduced a 30-day reporting time limit for taxpayers with an AATO of 100 Crores or more. According to this rule, invoices, credit notes, or debit notes older than 30 days from their issuance date could not be reported on the IRP.

Expanded to 10+ Crore AATO

With the latest update issued on November 5, 2024, the threshold has now been lowered to 10 Crores. As of April 1, 2025, taxpayers falling under this category will be unable to generate an Invoice Reference Number (IRN) for any invoice, credit note, or debit note older than 30 days from its date of issue.

Implementation Timeline

To allow businesses sufficient time to align their invoicing procedures with the new requirement, the regulation will take effect from April 1, 2025. This ensures that taxpayers with an AATO of 10 Crores or above can update their internal processes accordingly.

No Impact on Businesses Below 10 Crore AATO

Taxpayers with an AATO of less than 10 Crores remain unaffected by this change and can continue reporting e-invoices without any specified time restriction.

Understanding e-Invoicing Under GST

E-invoicing is an electronic system for invoice authentication, where business invoices are validated through the GSTN and submitted to the central GST portal. Initially introduced for large enterprises, the scope of e-invoicing was later expanded to include small and medium businesses.

Instead of generating invoices directly on the GST portal, businesses create invoices using their accounting systems and then upload them to the Invoice Registration Portal (IRP). The IRP assigns a unique Invoice Reference Number (IRN) to each invoice, ensuring its legitimacy. This data is automatically shared with the GST and e-way bill portals, eliminating manual data entry during GST return filing.

Benefits of the 30-Day e-Invoice Reporting Limit for SMEs

The extension of the 30-day reporting time limit to businesses with an AATO of 10 Crores provides several advantages:

• Reduced compliance burden: SMEs get additional time to report e-invoices, reducing penalties and compliance risks.
• Better cash flow management: More time for reporting helps businesses manage their cash flow efficiently and allocate resources effectively.
• Encourages adoption: The extended timeframe may lead to wider adoption of the e-invoicing system, promoting transparency and efficiency.

Consequences of Missing the 30-Day Deadline

Failing to report an invoice within the 30-day limit can have significant implications:

• Invoice Rejection by IRP: If an invoice is reported beyond the permitted timeframe, it will be rejected, preventing the generation of an IRN.
• Re-issuance of Invoice: Businesses may need to regenerate the invoice, leading to possible confusion, duplication, and administrative challenges.
• Cash Flow and ITC Delays: Late reporting can disrupt the seamless flow of input tax credit (ITC), potentially straining relationships with vendors and customers.
• Risk of Penalties and Non-Compliance: Consistent failure to meet deadlines may lead to audits, notices, and financial penalties under GST regulations.

Final words

To ensure compliance with the latest e-invoicing regulations, businesses must generate and report invoices within the specified time frame. Timely reporting helps maintain smooth operations, avoid penalties, and ensure seamless GST compliance. Businesses should stay updated with regulatory changes and implement efficient invoicing systems to meet compliance requirements without disruptions.