Impact of 7-day E-invoice Generation Limit

Ann. Agg. Turnover => 100 Crores

The government has decided to impose a time limit of 7 days from the date of reporting, on submitting old invoices on the e-invoice IRP portals for such taxpayers?

Ann. Agg. Turnover < 100 Crores

As of now, there will be no such reporting restriction for such taxpayers. However, for taxpayers with an AATO of less than 100 crores, one validation remains:

"For all transactions, the document date 01/10/2021 onwards will be accepted."?

It is important to note that this timing restriction only applies to the document type ‘invoices’ and not to debit and credit notes.

As a result, any taxpayer who attempts to submit documents older than 01/10/2021 will receive a validation error from IRP. To give taxpayers enough time to comply with this requirement, which may necessitate changes to your systems, a 7-day extension will be implemented beginning May 1, 2023.

• The validation system built into the Invoice Registration Portal (IRP) will prevent the user from reporting the invoice after the 7-day limit.?
• The revised timeline may cause a number of difficulties and headaches for taxpayers. In large corporations with numerous branches across the country, centralized software is frequently used to generate e-invoices. After receiving data from the branches, the main office generates e-invoices in bulk at a later time, which affects sales and issues invoices.?
• Because an e-invoice is not generated, directly reporting in GSTR 1 and sending the same invoice to the customer without IRN details will result in a penalty for the supplier as well as an ITC loss for the customer. In such cases, the supplier may lose business.

Penalty: