As per GST law, businesses cannot avail Input Tax Credit (ITC) if invoices are not uploaded on IRP. It is very important to know what things are going to change with this one change.
New GST Rule: Some rules of GST have changed from today. Businesses whose turnover is 100 crores and above must upload their electronic invoices on the Invoice Registration Portal (IRP) within 7 days from the date of issue of invoice. This system has also been implemented from today.
At present, business entities are required to upload invoices on the Invoice Registration Portal (IRP), irrespective of the date of issue of such invoices.
The GST Network (GSTN) has said that the government has decided to impose capping of time limit on reporting of old invoices on the e-invoice IRP portal for taxpayers whose aggregate annual turnover is more than or equal to ₹100 crore. As per GSTN, “To ensure timely compliance, this category of taxpayers shall not be permitted to report invoices older than 7 days on the date of reporting.”
This will be the arrangement
GSTN said that if the date of an invoice is April 1, 2023, it cannot be reported after April 8, 2023. The verification system in place in the Invoice Registration Portal will prevent the user from reporting the invoice after 7 days. Therefore, it is necessary for taxpayers to ensure that they report the invoices within the 7-day period imposed by the new deadline.
What will be the effect of this change
As per GST law, businesses cannot avail Input Tax Credit (ITC) if invoices are not uploaded on IRP. This technical change will prevent backdating of e-invoices by big companies. After successfully implementing it for taxpayers with larger and higher transactions, the government may roll out these changes to all taxpayers in a phased manner.
It is mandatory to generate electronic invoice
Currently businesses with a turnover of Rs 10 crore and above are required to generate electronic invoices for all B2B transactions. Under the Goods and Services Tax (GST) law, e-invoicing was made mandatory for business-to-business (B2B) transactions for companies with a turnover of more than Rs 500 crore from October 1, 2020, which was later changed to Rs. was given.
B2B e-invoicing made mandatory for companies with turnover of more than Rs 50 crore from April 1, 2021. From April 1, 2022, this limit was reduced to 20 crores. From October 1, 2022, this limit was further reduced to 10 crores.
No good for tax evaders
The government has made all preparations to detect GST evasion. GST collection almost doubled year-on-year to exceed Rs 1.01 lakh crore by 2022-23. 21,000 crore was recovered by the Directorate General of GST Intelligence (DGGI) officials during the last financial year. The government is using data analytics and artificial intelligence to identify frauds.
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