👍👍👍👍👍👍👍New GST Rule in effect from May 1st 2023 for Businesses with 100 Crore and above Turnover

Clipped from: https://www.taxscan.in/new-gst-rule-in-effect-from-may-1st-2023-for-businesses-with-100-crore-and-above-turnover/273921/

The Government of India has introduced a new rule for businesses with turnover above 100 crores from May 1st 2023. The Goods and Services Tax Network (GSTN) has stated businesses have to upload their electronic invoices on Invoice Registration Portal (IRP) within 7 days of the issue of such invoices.

In order to ensure that taxpayers conform with their obligations in a timely manner, a due date has been set. According to the report, invoices older than 7 days won’t be able to be uploaded into the IRP. The method of electronic invoicing substitutes the place of paper invoices. There is no restriction on reporting debit/credit notes; the time constraint is only applied to invoices.

Companies currently upload their invoices to the Invoice Registration Portal (IRP) on the current date, regardless of when the invoice was issued.

Initially, companies having a turnover of more than 500 crores were required to use electronic invoicing for business-to-business (B2B) transactions as of October 1, 2020.

However, this new rule is only applicable to businesses having turnover above 100 crores.

The CBIC had notified the reduction in the Applicability of GST E-invoicing threshold from Rs.50 Crores to Rs.20 Crores with effect from April 1, 2022. The requirement was further reduced to 10 crore turnover enterprises in October 2022.

E-invoice will be relevant to your company if the yearly income surpasses 10 crores. It is mandatory to upload all B2B and B2G invoices electronically to the portal. The e-invoice needs to be generated in a suitable format and submitted to the IRP website.

It should be highlighted that local and governmental entities are exempted from the requirement for a GST E-invoice. The CBIC has released local governments and government departments from the necessity to issue GST E-Invoices.

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