Clarification requested on advisory allowing 30 days for reporting invoices on IRP

[Sanjeev Kumar]

The GSTN has issued an advisory on Sep 11, 2023 (https://einvoice1.gst.gov.in/Documents/advisory080923.pdf) allowing registered taxpayers with AATO equal to or exceeding Rs.100 crores, to report the details of their B2B supplies within 30 days of generating the said B2B tax instrument. Para 1 of the said advisory reads as follows:

'It is to update you that it has been decided by the GST Authority to impose a time limit of 30 days for reporting of invoices from date of invoice, on e-invoice portals. This time limit is applicable for taxpayers with AATO greater than or equal to 100 crores. Hence, the taxpayers in this category will not be allowed to report invoices older than 30 days on the date of reporting...'

As per Rule 48(5) read with Rule 48(4) of CGST Rules, 2017, '...Every invoice issued by a person to whom sub-rule (4) applies in any manner other than the manner specified in the said sub-rule shall not be treated as an invoice.'

This implies that a registered taxpayer shall generate the E-invoice bearing the unique IRN, before or at the time of supply of goods or services, and issue it to the intended recipient.

If my understanding is correct, among other things, then a tax invoice shall be generated:

For supply of goods

1. At the time of supply of goods to the recipient, where no movement of goods is involved

2. At the time of dispatch of goods to the recipient, where there is movement of goods before delivery to the intended recipient

For supply of services,

Before or after provision of services. If the invoice is issued after provision of service, it has to be done within the specified period of 30 days from the date of supply of service, as per invoice rules.

Please help me understand why taxpayers whose AATO is equal to or more than Rs.100 crores, are being allowed to report and generate e-invoices up to 30 days from the date of generation of such tax invoice. Do we have realistic scenarios where a registered taxpayer would generate a tax invoice and wait for up to 30 days, to generating an E-invoice?

Thanks!

[Ganeshan Kalyani]

Now a days corporates are getting two persons job done from one person. Also the employee has to take care of subsidiaries (company of parent company). So there is lot of work pressure on one person which leads him to attend only the very critical task like filing return, preparing for audit and assessment etc. He tend to skip e invoice. Department knows this. Situation of Department is not different than corporate world. Seniors are expecting a lot of work from their juniors and there is no Guidance from senior in execution of work. This leaves no time to junior to attend all the work within timeline. This 30days grace period will help a lot to the executives of big companies.

[Ganeshan Kalyani]

In case of exhibition the sale happen at various day at the event and on completion of exhibition the remaining goods are brought back to the place of business and then the sales details are uploaded in the accounting software. In such case sale invoice was issued at the event let's say by hand held invoicing device. Those details are downloaded from the machine and uploaded in accounting software once the team is back in office. Once recorded in accounting system the accountant starts generating e invoice. This creates a time gap of invoice being recorded and e invoice of the same is generated. May be for this scenario the Govt has given 30 days time period.

[Ganeshan Kalyani]

In case of sale on approval basis the goods are sent on the basis of delivery challan. Once confirmed by the customer of the purchase the invoice is raised. Here there are possibility of customer not confirming the purchase within prescribed time limit of 6 months. On completion of 6 months the sale is deemed to be happened. In such cases the supplier may miss to raise invoice immediately on the day following 6th month. May be for this scenario the time limit of 30 days is given for generating e invoice.

[Shilpi Jain]

Sometimes it could be back dated entries for making revenue or profit adjustment in books.

Or inter-group billings missed to be raised or done only during audits, etc.

THere can be various reasons for this,

AI Summary

E-invoice reporting window allows delayed reporting for large taxpayers, easing compliance burden caused by operational delays The advisory permits large taxpayers to report B2B invoices on the e invoice portal within a short grace period from the invoice date while preventing reporting of invoices older than that window, notwithstanding the general requirement that an invoice be generated before or at the time of supply. The relief addresses practical scenarios - staffing and workload constraints, event sales uploaded after the fact, sales on approval and deemed sales timing, and delayed inter company or audit-driven billing - that create a gap between invoice issuance and e invoice generation.