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TIME LIMIT FOR REPORTING INVOICE ON THE IRP PORTAL

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Last Updated on June 27, 2023 by Kanakkupillai

The e-invoice system has changed over time to improve compliance. Initially, e-invoices were mandated for businesses with a turnover exceeding 500 crores as of 2020. However, this threshold has been gradually reduced.  An advisory committee was formed to regulate this process on April 12th, 2023, which has set a deadline for reporting e-invoices on the IRP portal. This article aims to provide an overview of important advice regarding the time limit for reporting invoices.

TIME LIMIT FOR REPORTING INVOICES ON THE IRP PORTAL

To ensure efficient compliance, the authorities have set specific time limits for companies and organizations. If a company’s annual turnover exceeds or equals 100 crores, it is mandatory to report e-invoices on the IRP portal. It is important to adhere to the following time limit:

  1. Deadline: No e-invoice should be reported on the portal after 7 days from the reporting date. For example, if an invoice is reported on April 1st, 2023, submitting the report on or after April 8th, 2023, will not be allowed by the IRP portal.
  2. Applicability: The time limit applies to all documents that require the generation of an Invoice Reference Number (IRN).
  3. Exemption: Organizations or business units with an aggregate annual turnover below 100 crores rupees are not required to comply with the time limit for reporting invoices on the IRP portal.

CONSEQUENCES OF NOT ADHERING TO THE E-INVOICING TIME LIMIT

Failing to adhere to the time limit for e-invoice reporting can have several consequences:

  1. Limited Reporting Window: The IRP portal only accepts e-invoice reports within 7 days from the reporting date. Any submission beyond this period will not be allowed.
  2. Non-Compliance: Failure to submit the e-invoice report within the prescribed time frame is non-compliant with the government’s specified procedure.
  3. Impacts on Customer Relations and Input Tax: Non-compliance with e-invoice reporting can affect customer relations and the accurate calculation of input tax value.
  4. Repeat Process: If the time limit is not met, the individual or business will have to initiate the process again, starting with generating a new e-invoice. This can be a time-consuming process.
  5. Penalties: The GST authorities may impose penalties, such as 25,000 rupees, for incorrect invoices. Additionally, for non-generation invoices, the penalty can be 100 percent of the tax due or 10,000 rupees, whichever is higher.

CONCLUSION

The time limit for submitting e-invoices is a mandatory process that has been recently emphasized. Business owners must promptly comply with this new provision to avoid penalties and ensure smooth operations.

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G.Durghasree B.A.B.L (Hons)

G Durghasree B.A.B.L (Hons) is a registered trademark attorney with extensive experience as an Advocate for a period of 8 years. She possesses expertise in trademark law, including trademark filing and trademark hearings. Additionally, she is skilled in contract drafting and reviewing, providing legal advice and opinions, particularly in the areas of Company Law, Insolvency and Bankruptcy Code (IBC), and Goods and Service Tax Law (GST). Her experience encompasses both litigation and non-litigation aspects of these laws.