Advisory on Time Limit for Reporting e-Invoices on the IRP Portal – Threshold Lowered to 10 Crores AATO

Key Update for Taxpayers on E-Invoice Compliance

Effective 1st April 2025, an important change in e-Invoice reporting rules will come into play. The time limit for reporting e-Invoices on the Invoice Registration Portal (IRP) has been revised, impacting a larger segment of businesses. This advisory is crucial for ensuring your business remains compliant with GST regulations.

What’s Changing?

The time limit for reporting e-Invoices on IRP portals, previously set for taxpayers with an Annual Aggregate Turnover (AATO) of 100 crores and above, has now been extended to cover businesses with an AATO of 10 crores and above. From 1st April 2025, these businesses will not be able to report e-Invoices older than 30 days from the date of invoice generation.

Details of the New Reporting Requirement

1. Applicability:

The 30-day reporting window applies to all document types for which an Invoice Reference Number (IRN) is required. This includes:

Invoices

Credit Notes

Debit Notes

2. Reporting Restriction:

The IRP portal will have a built-in validation system. This means that if an e-Invoice is older than 30 days, the portal will block the reporting of that invoice.

For example, an invoice dated 1st April 2025 must be reported by 30th April 2025. If it is reported after the 30-day limit, it will be rejected by the IRP system.

3. Who is Affected?

Businesses with an AATO of 10 crores or more. For businesses with a turnover under 10 crores, there is currently no restriction on reporting e-Invoices.

4. Why This Update Matters

The objective behind this change is to ensure timely reporting and accurate data management in the GST system. Businesses must stay aware of these rules to avoid non-compliance, which could lead to disruptions in their operations.

5. Steps to Prepare Your Business

a. Review and Update Your Processes:

Make sure your invoicing systems are ready to report e-Invoices promptly. Automating this process or setting reminders can help ensure compliance.

b. Educate Your Team:

Inform your accounting and finance departments about the new requirements. Proper training will minimize errors and delays.

c. Assess Impact on Workflow:

Plan your invoicing workflows to ensure you meet the new deadlines without complications. This is essential for smooth business operations and to avoid potential penalties or compliance issues.

Implications for Smaller Businesses

Businesses with an AATO below 10 crores are not subject to this 30-day reporting limit at the moment. However, it’s good practice to stay updated on any future changes that may impact your operations.

Conclusion

As we approach 1st April 2025, it is crucial for affected businesses to adapt to these new requirements. Timely e-Invoice reporting will be key to staying compliant and maintaining efficient financial management. Ensure your systems and teams are ready for this shift, and keep monitoring for further updates that may affect your GST reporting responsibilities.

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Disclaimer: This material and the information contained herein is intended for clients and other Chartered Accountants to provide updates and is not an exhaustive treatment of such subject. We are not, by means of this material, rendering any professional advice or services. It should not be relied upon as the sole basis for any decision which may affect you or your business.