The new advisory marks a significant update in the process of e-Invoicing for businesses. Let’s dive into the essential points:
- Previous Threshold and Update: Originally, an advisory was issued on September 13, 2023, mandating a 30-day time limit for reporting e-Invoices on IRP portals for taxpayers with an Annual Aggregate Turnover (AATO) of 100 crores and above. This threshold has now been lowered to cover taxpayers with an AATO of 10 crores and above.
- Implementation Date: Effective from April 1, 2025, taxpayers with an AATO of 10 crores and above will be required to report e-Invoices within 30 days from the date of reporting on IRP portals. Failure to comply will result in the inability to report the e-Invoice after the 30-day window.
- Scope of Application: This new restriction applies to all document types, including Invoices, Credit Notes, and Debit Notes that require an Invoice Reference Number (IRN).
- Example Scenario: For clarity, if an invoice is dated April 1, 2025, it must be reported by April 30, 2025. The invoice registration portals (IRP) have built-in validations that will prevent reporting of e-Invoices beyond the 30-day period.
- No Impact on Smaller Taxpayers: Taxpayers with an AATO of less than 10 crores are currently exempt from this reporting restriction.
- Compliance Period: To ensure a smooth transition and ample preparation time, this new limit will be enforced from April 1, 2025, onwards.
For the detailed advisory, refer to the earlier notice dated September 13, 2023, here.
Conclusion
This adjustment emphasizes the importance of timely reporting and compliance for businesses to avoid disruptions. By lowering the threshold, the government aims to streamline the e-Invoice reporting process and enhance transparency.
Taxpayers are urged to align their reporting practices to meet the new requirements and ensure smooth operations. For any further assistance or queries, contacting the IRP support team is recommended.
Stay compliant and proactive!
