New GST regulations are in place starting today for companies with annual revenue over $100 crore. Businesses currently upload their invoices to the Invoice Registration Portal (IRP) on the current date, regardless of when the invoice was issued.
Starting on May 1, businesses having a turnover of $100 billion or more will be required to upload their electronic invoices to the Invoice Registration Portal (IRP) within seven days of the invoice’s issuance.
Businesses currently upload their invoices to the Invoice Registration Portal (IRP) on the current date, regardless of when the invoice was issued.
The government has decided to place a time limit on submitting old invoices on the e-invoice IRP portals for taxpayers with aggregate yearly revenue higher than or equal to 100 crores, according to a bit of advice from the GST Network (GSTN) to taxpayers.
According to GSTN, “Taxpayers in this category will not be allowed to report invoices older than 7 days on the date of reporting” in order to “ensure timely compliance.” This new format would be used starting on May 1, 2023, to give taxpayers enough time to comply with this requirement.
There will be no time limit on reporting debit/credit notes, and this restriction only applies to invoices, it was added.
As an additional illustration, the GSTN stated that an invoice with April 1, 2023, due date cannot be reported after April 8, 2023. The user will be unable to report the invoice after the 7-day limit thanks to the validation system embedded into the invoice registration portal. As a result, it is crucial for taxpayers to make sure they report
Businesses are not permitted to use input tax credits (ITC) under GST rules if invoices are not posted to the IRP.
Rajat Mohan, the senior partner of AMRG & Associates, predicted that this technological advancement will stop big businesses from backdating their electronic bills. “After successfully implementing this for large taxpayers, the government is expected to roll out these changes for all taxpayers in a phased manner,” Mohan told PTI.
Currently, all B2B transactions must generate an electronic invoice for businesses with a turnover of at least 10 crores.
Once the stated limit of $100 billion in turnover is significantly reduced or made mandatory for all assesses required to generate IRNs (Invoice Registration Numbers), this could also help to increase GST collection, according to Agarwal.
In the meantime, an official informed PTI that the amount of GST evasion discovered by tax officers nearly increased year over year to over 1.01 lakh crore in the recently ended 2022–23 fiscal. The employees of the Directorate General of GST Intelligence (DGGI) recovered 21,000 crores during the previous fiscal year. The representative claimed that efforts are being made by the government to improve compliance and to spot fraud using data analytics and human intelligence. “DGGI officers have found $1,01,300 crore worth of evasion in 2022–2023. Of this, 21,000 crore have been recovered.
E-invoicing for business-to-business (B2B) transactions was made essential under the Goods and Services Tax (GST) law for enterprises with a turnover of over 500 crore starting on October 1, 2020, and for those with a turnover of over 100 crore starting on January 1, 2021.
Companies that had a turnover of above $50 crore started producing B2B e-invoices on April 1, 2021. On April 1, 2022, the barrier was reduced to $20 crore. The barrier was further reduced to 10 crore as of October 1, 2022.
