E Invoice Time Limit for 10Cr Service Company

[gururaj Bhat]

Dear Sir,
is there any time limit for pushing invoice to IRP for a 10cr TO service company. The company is raising invoice on a daily basis & sends it to clients for confirmation. Once the client confirms then it will be pushed to IRP. So all the invoices raised in Nov month will be pushed on10th of December i.e before filing of GSTR-1. Is this the right way. Pls advice. Thank you.

[Padmanathan KV]

Please peruse Sub-Rule (4) and (5) of Rule 48 of CGST Rules:

(4) The invoice shall be prepared by such class of registered persons as may be notified by the Government, on the recommendations of the Council, by including such particulars contained in FORM GST INV-01 after obtaining an Invoice Reference Number by uploading information contained therein on the Common Goods and Services Tax Electronic Portal in such manner and subject to such conditions and restrictions as may be specified in the notification.

Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt a person or a class of registered persons from issuance of invoice under this sub-rule for a specified period, subject to such conditions and restrictions as may be specified in the said notification.

(5) 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.

[gururaj Bhat]

Dear Sir, thank you for your advice. Is there any time limit to generate IRN in invoice.

[Shilpi Jain]

Ideally the IRN should be generated within the time limit in which the invoice is required to be issued since for taxpayers required to generate e invoice, e-invoice is only a valid invoice.

However, there was an advisory from GSTN that for taxpayers with turnover more than 100 crores, the portal will not allow generation of e-invoice after 7 days.

So portal though would allow you to generate e-invoice, but there is a possibility of levy of a general penalty by dept in case the IRN generation is delayed.

[Padmanathan KV]

Sorry for belated reply.

I endorse view of Shilpi ma'am. To add further, if goods are intercepted during movement without e-invoicing, it may be detained by authorities under section 129. Therefore, it is advisable to generate e-invoicing simultaneously or atleast before the movement of goods.

[gururaj Bhat]

Dear Shilpi Maam & Padmanathan sir,

Thanks for your valuable feedback.

But recently there was an advisory for stating that

"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. Please note that this restriction will apply to the all document types for which IRNs are to be generated. Thus, the Credit / Debit note will also have to be reported within 30 days of issue from date of issue. For example, if an invoice has a date of Nov. 1, 2023, it cannot be reported after Nov. 30, 2023. This validation will come into effect from 1st Nov, 2023."

The above instruction says there is a time limit of 30 days to generate IRN's for AATO more than 100 cr, but there is no advisory for less than AATO 100 cr.

Based on the above advisory can we raise invoice first & generate IRN later. Pls advice.

AI Summary

E invoice timing: generate IRN within the invoice issuance period or face portal rejection, penalties, and detention risk. Notified persons must upload prescribed invoice particulars to the common portal and obtain an Invoice Reference Number (IRN); an invoice issued otherwise is not a valid invoice. IRN generation should occur within the period in which the invoice is required to be issued because e invoices are the only valid invoices for mandated taxpayers. Practical advisories cited portal restrictions and a reporting window for taxpayers above the high turnover threshold, covering all document types including credit and debit notes; no similar advisory was indicated for taxpayers below that threshold.