Businesses with AATO of ₹10 Cr and above Must Report e-Invoices Within 30 Days 

Starting 1st April 2025, significant changes to e-invoice reporting rules will take into effect. The GST system in India continues to evolve with new rules aiming to streamline tax compliance. One such crucial development is the 30-day time limit for reporting e-invoices on the Invoice Registration Portals (IRP). While it was earlier introduced for taxpayers with an Annual Aggregate Turnover (AATO) of 100 crores and above, the latest advisory dated 5th November 2024 reduces this threshold to an AATO of 10 crores or more, effective '1st April 2025'. This article explains the significance of the e-invoicing time limit, its applicability, and the steps businesses must take to stay compliant.

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30-Day e-Invoice Reporting Time Limit Now Extended to 10 Crore Turnover 

In a significant move aimed at enhancing compliance and streamlining the e-invoicing process under GST, the Goods and Services Tax Network (GSTN) has announced a time limit restriction for reporting e-invoices on Invoice Registration Portals (IRP). This update, effective from 1st April 2025, lowers the threshold for taxpayers from the previous 100 Crores to 10 Crores of Annual Aggregate Turnover (AATO). The Key Highlights of the Advisory is as follows:

Earlier Restriction for 100+ Crore AATO

In an earlier advisory dated 13th September 2023, GSTN introduced a 30-day time limit for taxpayers with an annual turnover of 100 Crores or more. Under that rule, any Invoice, Credit Note, or Debit Note older than 30 days from the date of issue could not be reported on the IRP.

Extended to 10+ Crore AATO

In the latest update released on 5th November 2024, the GSTN has now lowered the threshold for taxpayers with an AATO of 10 Crores or more. This means that starting from 1st April 2025, such taxpayers cannot generate an Invoice Reference Number (IRN) for any document (Invoice, Credit Note, or Debit Note) older than 30 days from its date of issue.

Implementation Date

To provide adequate time for businesses to adjust their invoicing practices, the new threshold will come into effect on 1st April 2025. This ensures that taxpayers with an AATO of 10 Crores and above have ample lead time to update their internal systems and processes.

No Impact on Sub-10 Crore AATO

Taxpayers with an AATO of less than 10 Crores remain unaffected by this new time limit. They can continue to report e-invoices without any specific restriction on the reporting window.

 The official notification is attached for reference.

Below is a comprehensive overview of the advisory, along with essential details on e-invoicing, its time limits, implications, and steps your business can take to stay compliant.

What Is e-Invoicing Under GST?

e-Invoicing, or electronic invoicing, is a system where business invoices are verified electronically by the Goods and Services Tax Network (GSTN) and submitted to a central GST portal. Initially launched for large companies, the GST Council later expanded e-Invoicing to include medium and small businesses as well.

Instead of creating invoices directly on the GST portal, businesses generate standard invoices using their own systems and then upload them to the Invoice Registration Portal (IRP). The IRP assigns a unique Invoice Reference Number (IRN) to each invoice, ensuring its authenticity. This information is automatically shared with the GST portal and the e-way bill portal in real time, eliminating the need for manual data entry when filing GST returns.

Who Must Generate e-Invoices and Its Applicability?

The applicability of e-invoicing is primarily determined by a taxpayer's Annual Aggregate Turnover (AATO).

All taxpayers with an AATO equal to or exceeding ₹5 Crore (as per the latest phase) are required to generate e-Invoices for specific transactions. From 1st April 2025, businesses with an AATO of ₹10 Crore or more will also need to comply with the updated 30-day reporting time limit.  

30-day e-Invoices Reporting Limit Benefits for SMEs

The extension of the 30-day e-invoice reporting window to businesses with a turnover of up to Rs 10 crore offers several benefits:

• Reduced compliance burden: SMEs now have more time to prepare and submit e-invoices, minimizing the risk of penalties and fines.
• Improved cash flow management: With additional time for reporting, businesses can better manage their cash flow and allocate resources more effectively.
• Increased adoption: The relaxed timeline may encourage more SMEs to adopt the e-invoicing system, leading to greater transparency and efficiency in the long run.

 Consequences of Missing the 30-Day Window

• Invoice Rejection by IRP: Any invoice attempted to be reported beyond the 30-day mark will be rejected, preventing the generation of an IRN.
• Re-issuance of Invoice: Businesses may have to re-raise the invoice, leading to confusion, potential duplication, and administrative burdens.
• Cash Flow and ITC Delays: Late reporting hinders the smooth flow of input tax credit through the supply chain, possibly straining relationships with vendors and customers.
• Exposure to Penalties and Non-Compliance Risks: Persistently missing deadlines can attract audits, notices, and penalties under GST law.

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Automation is key to achieving real-time compliance under the evolving GST regime. IndiaFilings’s Ledgers offers a seamless platform to:

• Auto-generate e-invoices and e-way bills at the source of the transaction.
• Integrate with your ERP systems or billing software to reduce manual entries.
• Provide error-free and timely updates to the GST portal, eliminating missed deadlines.
• Ensure end-to-end compliance with minimal manual intervention.

By choosing an automated solution - Ledgers, you not only simplify your compliance but also mitigate risks of human error, saving valuable time and resources.

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