The government released a new advisory stating the new rule regarding – “Time limit for Reporting Invoices on the IRP Portal.”
Update: The government decided to defer the implementation of recently revised regulations pertaining to the deadline for Reporting Invoices on the Invoice Registration Portal (IRP) for taxpayers with an Annual Aggregate Turnover (AATO) of 100 crores or more.
For taxpayers with AATO higher than or equal to 100 crores, the Government has decided to impose a time limit on submitting old invoices on the e-invoice IRP portals. To ensure timely compliance, taxpayers in this category will not be allowed to report invoices older than 7 days on the date of reporting.
This restriction will apply to the all-document types for which IRN is to be generated. Thus, once issued, the credit / Debit note will also have to be reported within 7 days of issue.
For example, if an invoice has a date of April 1, 2023, it cannot be reported after April 8, 2023. The validation system built into the invoice registration portal will disallow the user from reporting the invoice after the 7-day window. Hence, it is essential for taxpayers to ensure that they report the invoice within the 7-day window provided by the new time limit.
It is further to clarify that there will be no such reporting restriction on taxpayers with AATO less than 100 crores, as of now. But for taxpayers with an AATO of less than 100 crores, for them one validation is still valid that is “For all transactions, the document date 01/10/2021 onwards only will be accepted”. So, if any taxpayer tries to submit documents older than 01/10/2021, then they will get the validation error from IRP.
In order to provide sufficient time for taxpayers to comply with this requirement, which may require changes to your systems, this change of 7 days will be implemented from 1st May 2023 onwards.
Impact of this 7-day invoice reporting limit on taxpayers
The validation system incorporated within the Invoice Registration Portal (IRP) will restrict the user from reporting the invoice after the 7-day limit.
All document types for which IRN is to be generated including debit/credit note need to be reported on the IRP portal within 7 days from the invoice date.
The revised timeline could result in a number of difficulties and hassles for taxpayers. E-invoice generation frequently uses centralized software in major corporations with numerous branches around the nation. The main office generates e-invoices in bulk at a later time after receiving data from the branches, which have an impact on sales and issue invoices. The lack of finance staff at each branch, network access challenges in remote places, or simple cost-effectiveness are a few reasons why e-invoice generation may not occur at the branch level.
They must exercise extreme caution to meet the 7-day deadline to share invoice data with the corporate office, or else they must deploy an e-invoicing solution at each branch location.
Furthermore, there could be errors or mismatches while filing GSTR 1, since there is no option to generate e-invoices post the seven-day time period. If invoice details are not added appropriately or missed in GSTR 1, invoices will not get reflected in GSTR 2B causing issues to claim ITC.
Also as e-invoice is not generated so such directly reporting in GSTR 1 and issuing the same invoice to customer without IRN details, will be cause a penalty to supplier as well as ITC loss for the customer. In such cases supplier may loose his business.
- On incorrect invoicing – Rs. 25,000 per invoice (for lack of IRN and signed QR code)
- On non-generation of e-invoice – 100% of the tax due or Rs.10,000, whichever is higher, for every invoice.
Action Steps for Taxpayers
Upgrade your ERP
Taxpayers immediately need to upgrade their ERPs and compliance processes to accommodate the time limit validation while raising tax invoices. Delay in reporting can restrict IRN generation.
Mandatory real time reconciliation
Real-time or daily reconciliation between the sales register and e-invoices becomes imperative to ensure that no invoice is left unreported.
How can IRIS GST Help?
The 7-day e-invoice generation limit has further intensified the need for a 100% automated reconciliation of GST data. An account of a minor mismatch, manual error or process lapse can put you on an arduous journey of going through vast piles of invoices.
IRIS has been helping taxpayers meet their e-invoicing requirements for the last 3 years and has generated more than 5 lac IRNs with 99.99% up-time.
Now, IRIS is a government authorized IRP that provides a seamless IRN portal backed by robust GSP and ASP solution of automated reconciliation, e-invoicing and e-way bill management and GST filing. Upgrade your e-invoicing and GST compliance with IRIS today and put these e-invoicing worries to rest.
With IRIS IRP, an e-invoice is generated on the same day, and it gets reflected in GSTR
Thus, you can plan and carry out this reconciliation on a daily basis or once in two days between the sales invoice generated in ERP vs E-invoice generated at IRP. This will make sure that you are not missing IRN generation on any of your invoices.
As a registered taxpayer, reconciling your purchase invoices with the supplier uploaded invoices on the GST system is a critical activity as it determines your ITC claim. Further, the Government issues legal notices to taxpayers for discrepancies in the ITC claimed in GSTR 3B and the amount as per supplier uploaded details. Our Smart Reconciliation comes in handy for managing the reconciliation tasks in a timely, efficient and easy manner.
No more waste of time and resources in manual recon results, which are prone to errors when you can opt for a more intelligent solution.
IRIS is chosen by Top conglomerates like L&T and Bajaj to reconcile data faster and ensure 100% compliance!
Feature Highlights of IRIS GST Software:
- Bulk Data upload facility – It helps to upload data for multiple GSTINs in one go
- 2P Summary – Provides a summary of uploaded data. You can quickly check your uploaded data with the count of invoices getting considered for reconciliation
- Bulk download of GSTR 2A and GSTR 2B– For multiple periods, you can send a ’Get GSTR 2A/ 2B data’ request in one go
- Intelligent reconciliation – It auto-runs your data and provides the recon results with a summary.
- Advanced reconciliation – Extend the scope of comparison between data that is in the supplier-only and purchaser-only categories. Some areas where IRIS GST Software Advanced Recon helps:
1. Checking invoices across the financial years
2. Fuzzy invoice no. logic to match erroneous invoice number mismatch
3. Checking exact values ignoring invoice number
4. Checking invoices within the mismatch tolerance provided by you
- Monthly reconciliation results with monthly GSTR 2A and 2B report – Helps to decide monthly ITC and how much you can claim
- Net vendor summary – It gives you a glance reconciliation status for each vendor.
- PAN level reports and GSTIN level reports – It helps to analyze in detail of your purchaser-only and supplier-only invoices ‘Send Mail’ feature – By using this feature, you can easily communicate discrepancies to your vendor.
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