New GST Regulation of E-Invoicing for Businesses with Rs. 100 Cr and more

The Indian government has introduced new regulations for companies with an annual turnover of Rs 100 crore or more, which will take effect from today - May 1, 2023.

These companies must upload their electronic invoices on the Invoice Registration Portal (IRP) within seven days of issuing them. Currently, invoices are uploaded on the IRP on the same day regardless of the issuance date. Companies will not be able to report invoices older than seven days from the reporting date.

The IRP validation system will not allow users to report invoices outside of the seven-day window. This new rule is expected to reduce the practice of backdating e-invoices by large companies and improve compliance, while increasing GST collection.

The government's efforts towards digitalization and compliance measures to detect fraud are ongoing. The implementation of the reporting timelines for IRP invoices will improve compliance administration and GST collection, particularly if the turnover limit of Rs 100 crore is significantly reduced or if all IRN-generating taxpayers are made to comply.



As per GST regulations, companies with an annual turnover of more than Rs 500 crore were required to generate e-invoices for their business-to-business transactions from October 1, 2020. This was later extended to those with a turnover of over Rs 100 crore, effective from January 1, 2021. From April 1, 2021, companies with a turnover of over Rs 50 crore were required to generate B2B e-invoices, and the threshold was further lowered to Rs 20 crore from April 1, 2022.

From October 1, 2022, the threshold was lowered again to Rs 10 crore. This new regulation is part of the government's ongoing efforts towards digitalization and compliance measures to detect fraud.

Compliance with the new regulations is crucial to avoid penalties and ensure timely processing of input tax credit.