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GSTN issues Updated Advisory on GST Invoice Reporting: 7 days Time Limit applicable for Invoices and Credit/Debit Notes also
GSTN issues Updated Advisory on GST Invoice Reporting: 7 days Time Limit applicable for Invoices and Credit/Debit Notes also. Eg. an Invoice/CN/DN dated April 1, 2023 cannot be reported after April 8, 2023.
In order to provide sufficient time for taxpayers to comply with this requirement, implementation proposed from 01.05.2023.
This advisory has opened up various ambiguity…
When there is such no time limit prescribed in the Act or Rules, whether GSTN has power to go about in prescribing it?
Though there is a time limit to raise invoice u/s 31, any delay can only cause a resultant interest impact u/s 50 and cannot mean that invoice itself cannot be issued or outward tax cannot be paid. Then what is the validity of such invoice without IRN?
Rule 48(5) specifically states that an Invoice issued shall not be treated as an invoice, unless IRN is generated u/s 48(4). But when the GSTN creates such time restriction, whether a non-compliance u/s 48(4) can be treated as a mere procedural lapse?
What could be the fate of ITC in future in the case of invoice without IRN with n no. of restrictions proposed to be brought u/s 38?
Whether movement of goods without IRN and with invoice & ewaybill can be justified, since there is anyway a time limit of 7 days available. Since Rule 138A(2) has reference to Rule 48(4), there are goods detention cases booked by roving squad even if IRN is not generated. Can such detention now be apparently invalid simply due to this time limit?
Bottomline: Can we look at this as a time extension of 7 days or time limitation of 7 days.. A boon or bane is all about the specific scenario. Nevertheless, whatever the Act, rules or the law states, Common portal is the supreme law as far as GST is concerned. It is better to be compliant on real time basis.
Due care to be taken by business especially on monthend / yearend closure of billing, especially in service industry.
The copy of the order is as under:
Updated Advisory: Time limit for Reporting Invoices on the IRP Portal
- 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.
- Please note that 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.
5. It is further to clarify that there will be no such reporting restriction on taxpayers with AATO less than 100 crores, as of now.
- In order to provide sufficient time for taxpayers to comply with this requirement, which may require changes to your systems, we propose to implement it from 01.05.2023 onwards.