GST tightens E-invoice deadlines for mid-sized businesses

Under the new GST regulations, businesses with an annual turnover exceeding Rs 10 crore must report e-invoices within 30 days starting April 1, 2025. Previously applicable only to larger firms, this update aims to minimize reporting delays and strengthen real-time tax compliance across more businesses. 

Starting April 1, 2025, businesses with an Aggregate Annual Turnover (AATO) over Rs 10 crore will be required to report e-invoices within 30 days of issuance under India’s goods and services tax (GST) system. This new rule, designed to improve on-time tax payments and reduce reporting delays, aims to make the GST process more efficient overall.

Previously, this 30-day reporting restriction applied only to businesses with AATO of Rs 100 crore or more, implemented in November 2023. With this update, more businesses will need to comply with prompt e-invoice reporting.

An advisory from the GST e-invoice system issued on Tuesday specified that companies meeting the Rs 10 crore threshold must submit invoices within 30 days to the Invoice Registration Portal (IRP) starting in April. The IRP will then generate a unique Invoice Reference Number (IRN), a digitally signed e-invoice, and a QR code for the user. This system supports business-to-business (B2B) transactions and helps simplify reporting for GST-registered entities.

The 30-day reporting limit will also apply to credit and debit notes and any other documents requiring IRN generation, as per the advisory. This extended timeline to April 2025 is intended to give businesses enough time to adapt their systems for this compliance update.

By expanding this requirement to include companies with lower turnover, the government aims to strengthen the accuracy and timeliness of GST reporting, building a more organized and reliable tax system across the country.