The Goods and Services Tax Network (GSTN) has mandated that businesses with a turnover of over Rs 100 crore must upload e-invoices on the Invoice Registration Portal (IRP) within seven days of issuance.
The move is aimed at improving tax compliance and reducing tax evasion.
Let’s understand the latest updates regarding the strict deadline issued for timely reporting of GST e-Invoices.
Introduction to e-Invoicing System
E-invoicing was introduced in October 2020 for businesses with an annual turnover of over Rs 500 crore.
Afterwards, it extended to all businesses with a turnover of over Rs 50 crore from April 1, 2021.
Later, GST E-Invoice mandate on business cross ₹10 crore turnover was introduced where businesses with 10 Crore rupees annual turnover or more needed to generate e-invoices.
Latest E-Invoice Generation mandate for businesses
With the latest mandate, businesses with a turnover of over Rs 100 crore will also have to comply with the e-invoicing system and report e-invoices within the seven days.
Furthermore, the requirement to upload e-invoices within seven days of issuance will be applicable to all document types that require an Invoice Reference Number (IRN).
This also includes credit and debit notes.
Therefore, businesses must ensure that all such documents are reported within the stipulated time frame(7 Days).
If your business has an annual turnover of Rs. 100 crore or more, Instabill can be an excellent solution for ensuring timely generation and uploading of e-invoices.
IRP & Mobile App for Timely Reporting of GST e-Invoices
The GSTN has developed a mobile app for businesses to upload e-invoices and enable real-time tracking of invoices.
This is expected to streamline the invoicing process and bring greater transparency and efficiency in tax administration.
Prakash Kumar, CEO of GSTN, stated that the mandate is a significant step towards making the e-invoicing system universal and that it would benefit both businesses and tax authorities.
The GSTN has also issued a detailed user manual for businesses to upload e-invoices on the IRP.
In order to ensure seamless compliance with the GSTN’s e-invoicing mandate, it is recommended that you seek expert advice from a certified professional, such as a Chartered Accountant (CA).
How does an E-Invoicing System Work?
The e-invoicing system works by generating a unique Invoice Reference Number (IRN) for each invoice.
The IRN is a unique identifier that is used to track the invoice throughout its lifecycle, from creation to payment.
The IRN is generated through the IRP, which validates the invoice details and assigns the IRN.
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Benefits of e-Invoicing System
The e-invoicing system has several benefits for businesses, including reducing errors in data entry, improving the accuracy of tax filings, and reducing the compliance burden on taxpayers.
The system also enables real-time tracking of invoices, which can help businesses better manage their cash flow and working capital.
In conclusion, the GSTN’s mandate for businesses with a turnover of over Rs 100 crore to upload e-invoices on the IRP within seven days of issuance is a significant step towards improving tax compliance and reducing tax evasion. The e-invoicing system has several benefits for businesses, including reducing errors in data entry, improving the accuracy of tax filings, and reducing the compliance burden on taxpayers. The move is expected to further streamline the invoicing process and bring in greater transparency and efficiency in tax administration.
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