The Goods and Services Tax Network (GSTN) is set to implement a stringent rule effective April 1, 2025, mandating timely upload of electronic invoices (e-invoices) to the Invoice Registration Portal (IRP). This move aims to enhance tax compliance and minimize revenue leakage.
Expanded Applicability
Previously, the requirement to upload e-invoices within 30 days applied only to GST taxpayers with an Annual Aggregate Turnover (AATO) of ₹100 crore and above. From April 1, 2025, this threshold will be lowered to ₹10 crore, significantly increasing the number of affected taxpayers. This change ensures broader compliance across various business sizes.
Mandatory 30-Day Upload Window
Under the new rule, taxpayers must upload e-invoices within 30 days from the invoice date. The GSTN portal will automatically reject any e-invoice submissions beyond this period. For example, an invoice dated April 1, 2025, must be uploaded by April 30, 2025. Failure to comply will render the invoice invalid, preventing buyers from claiming Input Tax Credit (ITC).
Consequences of Non-Compliance
Experts warn that missing the 30-day window can lead to severe repercussions:Loss of ITC: Buyers cannot claim tax credits, disrupting business operations.Penalties and Interest: Delayed GST payments may incur interest at 18% per annum and additional fines.Operational Disruptions: Transactions may be halted, affecting supply chains and customer trust.
Expert Insights and Solutions
Divya Bhushan, EY India: The lowered threshold enhances tax efficiency and reduces manual errors, fostering a transparent tax environment.
Bimal Jain, A2Z Taxcorp LLP: Emphasizes the importance of timely uploads to ensure ITC availability for buyers.
Siddharth Surana, CA: Advises manual reporting of missed e-invoices in GST returns to mitigate penalties, though this should be a last resort.
