Stricter GST E-Invoicing Rules: Businesses Beyond INR 10 Crore Face 30-Day Deadline According to the government GST portal, 'e-Invoicing' means "reporting details of specified GST documents to a Government-notified portal, i.e., IRP and obtaining an invoice reference number".
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Starting April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of INR 10 crore or more must upload GST e-invoices to the Invoice Registration Portal (IRP) within 30 days of issuance. Previously, this requirement applied only to businesses with an AATO exceeding INR 100 crore.
E-invoices of those firms who fail to upload in the given time window will be rejected and the company will be face repercussions in terms of monetary penalty.
According to the government GST portal, 'e-Invoicing' means "reporting details of specified GST documents to a Government-notified portal, i.e., IRP and obtaining an invoice reference number". The GST Council of India introduced the 'e-invoicing' or 'electronic invoicing' system in phases to facilitate reporting business-to-business (B2B) invoices on the GST portal.
"Currently, there is no strict deadline for businesses to upload e-invoices to taxpayers with an AATO of less than 10 crore. However, from April 1, businesses with an AATO of INR 10 crore or more must report e-invoices IRP within 30 days of issuance, as per a Goods and Services Tax Network (GSTN) advisory dated November 5, 2024. Previously, this time restriction applied only to businesses with an AATO of INR 100 crore or more (effective November 1, 2023). The lowered threshold aims to enhance compliance," said Abhishek Raja Ram, a chartered accountant with over 18 years of experience.
"GST e-invoicing will streamline compliance, enhance efficiency, and increase transparency. Automation will reduce errors, minimize manual data entry, and help businesses avoid penalties. Operational efficiency will improve as invoice details are transmitted to the GST network in real time, cutting processing time. Digital record-keeping will simplify audits and ensure better financial tracking," said Pallav Jain, chief financial officer, Core Integra.
The types of documents that need to be uploaded for IRN generation include GST Invoices, Credit Notes, or Debit Notes related to B2B supplies and exports. These documents help tax authorities in flagging of fraudulent activities.
"E-invoicing helps reduce fake invoices and fraudulent input tax credit claims by creating a digital audit trail. Since each invoice is registered on a central system, it becomes much harder to create fake invoices or manipulate records. These mechanisms collectively create a more transparent tax ecosystem that makes fraud significantly more difficult to execute and easier to detect," said Milin Shah, a Mumbai-based chartered accountant.
Besides other changes, the authorities have given exemption to Special Economic Zone (SEZ) units, insurance and banking sectors, including non-banking financial companies (NBFCs), multiplex cinema admissions, goods transport agency [transporting goods by road in carriage], and passenger transport services.
In other related news, Gross GST collection in March grew 9.9 per cent to over INR1.96 lakh crore, government data showed. GST revenue from domestic transactions rose 8.8 per cent to INR 1.49 lakh crore, while revenue from imported goods was higher 13.56 per cent to INR 46,919 crore. Total refunds during March rose 41 per cent to INR 19,615 crore.
