Much-anticipated relief. Implementation of time limit on reporting old e-invoices under GST deferred 

Government has deferred implementation of time limit on reporting old e-invoices for big assesses under GST by three months. It was scheduled to be implemented from May 01. Experts say businesses will get more time to align their system 

In an advisory, GSTN (IT backbone of GST) says, “It is to inform you that it has been decided by the competent authority to defer the imposition of time limit of 7 days on reporting old e-invoices on the e-invoice IRP portals for taxpayers with aggregate turnover greater than or equal to ₹100 crores by three months.” Further, it said that the next date of implementation will be shared with assesses in due course of time. 

The mechanism, as advised on April 13, prescribes old invoices can be reported on e-invoice IRP (Invoice Registration Portal). This will apply to the all-document types for which IRN (Invoice Reference Number) is to be generated. Also, the credit/debit note will have to be reported within 7 days of issue. For example, if an invoice has a date of May 1, 2023, it cannot be reported after May 8, 2023. The validation system built into the invoice registration portal will disallow the user from reporting the invoice after the seven-day window.

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It was also said that there will be no such reporting restriction on taxpayers with an annual turnover of less than ₹100 crores, as of now. There is feeling in the tax administration that the proposed system will help in moving towards near real-time recording of economic activities in the country. 

Commenting on deferment, Ankur Gupta- Practice Leader Indirect tax at SW India felt that it was a much-anticipated relief for businesses that have not yet integrated their Enterprise Resource Planning (ERP) with real-time reporting into the Invoice Registration Portal (IRP). The earlier requirement had put an additional burden on such businesses to upload their invoices in the IRP portal, leading to compliance challenges and operational difficulties. 

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The extension of the time limit to report invoices to the IRP will provide these businesses with the necessary time to streamline their reporting processes, ensuring effective implementation going forward. By doing so, businesses can avoid penalties for non-compliance and improve their overall compliance posture.

Moreover, “this deferment will also help businesses to adopt and implement the necessary changes to their systems, processes, and technology to comply with the new regulations smoothly. This move will enable businesses to focus on their core operations and strategic goals while ensuring compliance with the tax laws and regulations,” he said. 

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