GSTN Extends Deadline For Businesses To Upload Old E-Invoice

The Goods & Services Tax Network (GSTN) has deferred the time limit by three months for businesses with turnover of over Rs 100 crore to upload their old e-voices on the Invoice Registration Portal (IRP). The move is expected to bring relief to the big startups especially the unicorns including other businesses with Rs 100 crore plus turnover. Experts say businesses will get more time to align their system.

Last month, GSTN had imposed a timeline for businesses to upload e-invoices on the Invoice Registration Portal (IRP) within 7 days of the issue of such invoices, starting from May 1. Previously, there was no such restriction for businesses to upload the invoices on the IRP. 

The move was aimed at enforcing compliance and improving transparency in the taxation system. However, many businesses were facing challenges in meeting the deadline, citing additional entries posted due to year-end charges originating from auditor recommendations and annual reconciliations.

GSTN Defers E-Invoice Uploading Dated For Businesses

In an advisory to taxpayers on May 6, GSTN said that the competent authority has decided to defer the imposition of the time limit of 7 days on reporting old e-invoices on the e-invoice IRP portals for taxpayers with an aggregate turnover greater than or equal to Rs 100 crore by three months. This extension will allow large businesses to smoothly implement the new provisions.

“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,” GSTN said. 

The next date of implementation will be shared with you in due course of time, GSTN added.

What Happens If Businesses Don’t Upload E-Invoices On IRP?

According to GST law, businesses cannot avail input tax credit (ITC) if invoices are not uploaded on the IRP. The delay in uploading the invoices can lead to non-compliance and loss of credit, affecting the business's bottom line. The move to defer the time limit for businesses with turnover of over Rs 100 crore is expected to provide much-needed relief to these businesses and enable them to comply with the regulations without any hassles.

The announcement of the deferment of the time limit for uploading old e-invoices has come as a relief to many startups and businesses that were struggling to meet the deadline. It is believed that this move will improve compliance levels and encourage more businesses to adopt the e-invoicing system. The e-invoicing system is expected to bring greater transparency in the taxation system and reduce the scope for tax evasion.

Can Businesses Report Invoices After Deadline?

In an advisory on April 13, 2023, GSTN had said, “It is to inform you that it has been decided by the Government to impose a time limit on reporting old invoices on the e-invoice IRP portals for taxpayers with AATO greater than or equal to 100 crores.”

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.