New GST Rule: No ITC for Late E-Invoice Upload

Starting April 1, 2025, businesses with an annual aggregate turnover (AATO) of ?10 crore or more must upload e-invoices on the GST Invoice Registration Portal (IRP) within 30 days of issuance. This new rule by the Goods and Services Tax Network (GSTN) aims to improve compliance, reduce tax evasion, and streamline the GST ecosystem. Here’s everything you need to know about the new rule, its impact, and the consequences of non-compliance.

Key Changes to E-Invoice Upload Rules

What Happens If E-Invoice Is Not Uploaded on Time?

1. Input Tax Credit (ITC) Impact: Failure to upload e-invoices within the stipulated 30-day window will invalidate the invoice. This means the buyer cannot claim ITC, leading to financial losses and disrupted business operations.
2. Legal Consequences
3. Operational Disruptions

Impact on GST Taxpayers

For Businesses:

• Improved Compliance: Streamlined invoice reporting reduces reconciliation errors.
• Increased Burden: Smaller businesses now face stricter compliance timelines, increasing administrative effort.

For Government:

• Enhanced Revenue Collection: Real-time data capture improves tax accuracy.
• Reduced Tax Evasion: Automated systems identify and penalize non-compliance faster.

Final Thoughts

The 30-day e-invoice rule is a step toward creating a disciplined, error-free GST ecosystem. By mandating timely uploads, it ensures faster reconciliations and reduces disputes between buyers and sellers. Businesses should adopt automated tools and robust processes to comply with this rule and avoid financial and operational setbacks.

“Compliance today ensures smoother operations tomorrow.”