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

New Advisory for e-Invoice Reporting on the IRP Portal

New Advisory for e-Invoice Reporting on the IRP Portal In a significant move to streamline compliance and expand the e-Invoice reporting mandate, the GST Network (GSTN) has announced a new advisory that reduces the threshold for mandatory 30-day e-Invoice reporting. Effective from April 1, 2025, this regulation will apply to taxpayers with an Annual Aggregate Turnover (AATO) of ₹10 crores and above, marking an important update to India’s e-Invoice compliance landscape. Here’s everything you need to know about the upcoming changes and how they could impact your business processes.

Overview of the Advisory

The latest advisory, released on November 5, 2024, extends the 30-day reporting restriction for e-Invoices to cover a much broader range of taxpayers by lowering the AATO threshold from ₹100 crores to ₹10 crores. New Advisory for e-Invoice Reporting on the IRP Portal This shift means that a larger number of businesses will now have to report their e-Invoices, including credit and debit notes, within a strict 30-day window.

Key Points:

  1. Threshold Change: New Advisory for e-Invoice Reporting on the IRP Portal AATO lowered from ₹100 crores to ₹10 crores for 30-day e-Invoice reporting.
  2. Effective Date: Applies from April 1, 2025.
  3. Scope: All document types (Invoices, Credit Notes, Debit Notes).
  4. Purpose: Enhance compliance and improve transaction data accuracy on the IRP portal.

Details of the 30-Day Reporting Rule

New Advisory for e-Invoice Reporting on the IRP Portal Under the new mandate, taxpayers with an AATO of ₹10 crores and above will be restricted to a 30-day reporting window for submitting their e-Invoices on the Invoice Registration Portal (IRP). This applies to all types of GST documents that require an Invoice Reference Number (IRN), including:

  • Invoices
  • Credit Notes
  • Debit Notes

If any of these documents are not uploaded to the IRP portal within the stipulated 30-day window, the system will prevent submission, meaning the taxpayer cannot report older documents after this period.

Practical Example

To clarify, let’s consider an example:

  • Invoice Date: April 1, 2025
  • Last Date for Reporting: April 30, 2025 (i.e., within 30 days)

If the invoice is reported after April 30, 2025, the IRP portal will automatically reject the entry. Therefore, timely reporting within the 30-day window is crucial.

This regulatory shift highlights the importance of businesses maintaining well-organized invoicing and compliance processes to avoid system rejections that could impact financial and operational functions.

Compliance Impact: What Taxpayers Need to Know

This mandate requires businesses with an AATO of ₹10 crores or more to adapt their reporting systems and workflows to meet the 30-day requirement. Here are some critical considerations:

  1. Review and Update Internal Systems
  • Businesses should review existing invoicing systems and ensure that they can facilitate prompt reporting within the 30-day timeline. New Advisory for e-Invoice Reporting on the IRP Portal
  • Automation of invoicing processes, where possible, can greatly help minimize errors and ensure compliance.
  1. Schedule Timely Data Verification
  • Regular reconciliation and verification of invoice data are crucial to avoid last-minute issues. This helps ensure that all invoices are accurately recorded and reported within the permitted timeframe.
  1. Automate Alerts and Reminders
  • Using digital tools to set alerts for e-Invoice submission deadlines can help maintain compliance. Reminders ensure that no invoice goes unreported within the specified timeframe, reducing the risk of non-compliance.
  1. Train and Educate Staff
  • Ensuring that finance and compliance teams are well-informed about the new rules and the importance of timely e-Invoice reporting is vital. New Advisory for e-Invoice Reporting on the IRP Portal Training sessions can help them understand the practical steps needed for compliance.
  1. Plan for Contingencies
  • Unforeseen situations, such as technical glitches on the portal, could potentially delay e-Invoice submission. Having a contingency plan, such as a buffer timeline within the 30-day window, can help mitigate such risks.

Implications for Businesses Below the ₹10 Crore Threshold

New Advisory for e-Invoice Reporting on the IRP Portal 

It is important to note that, as of now, businesses with an AATO below ₹10 crores are exempt from this 30-day reporting mandate. They can continue to report their e-Invoices without the newly imposed restriction, but these businesses should stay updated in case the threshold is further lowered in the future.

Benefits of the Revised e-Invoice Threshold

The move to lower the threshold brings potential benefits for both businesses and regulatory bodies:

  1. Enhanced Compliance and Transparency
    The new 30-day restriction aims to improve the timeliness and accuracy of data available on the GSTN portal. This can assist tax authorities in better monitoring transactions and reducing discrepancies.
  2. Improved Cash Flow Management
    Prompt reporting of invoices supports businesses in maintaining accurate financial records, which can, in turn, help optimize cash flow management. This also ensures businesses can access timely input tax credits.
  3. Operational Efficiency for Businesses
    Implementing an efficient invoicing process aligns with best practices for corporate governance, helping businesses strengthen their internal controls and improve overall operational efficiency.

Preparing for the Transition

The GSTN has provided a buffer period until April 1, 2025, to enable businesses to adapt to these changes. This transition period is an opportunity for affected taxpayers to evaluate and refine their invoicing systems, ensuring seamless compliance once the new threshold becomes effective.

https://www.gst.gov.in/

Final Thoughts

The revised e-Invoice reporting threshold reflects the government’s commitment to enhancing transparency, compliance, and financial discipline within India’s tax ecosystem. As April 2025 approaches, businesses with an AATO of ₹10 crores or more must ensure they have robust invoicing practices to align with the 30-day reporting mandate.

For further details, you can refer to the official GST advisory dated September 13, 2023.

Conclusion

New Advisory for e-Invoice Reporting on the IRP Portal Timely adaptation to this mandate will ensure businesses remain compliant, avoid system rejections, and maintain accurate financial data. New Advisory for e-Invoice Reporting on the IRP Portal Businesses affected by this change should treat the transition period as an opportunity to refine their processes, making the April 2025 rollout as smooth as possible.

Stay proactive and informed to ensure full compliance with India’s evolving GST requirements!

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