Validity of Invoices Not Registered on IRP Within 30 Days

[VENKAT S]

In cases where e-invoices are not generated within the 30-day window and the IRP rejects them, Rule 48(5) renders such invoices invalid despite tax payment and reporting in GSTR-1. Should a procedural lapse override the substantive compliance? How are professionals handling such scenarios in practice, especially with respect to ITC eligibility and departmental response?

[Sadanand Bulbule]

In my experience, this time line is mandatory and non-negotiable as per GSTIN advisory. There is risk of non-eligibility of ITC to the recipient, besides risk of penalty under Section 122. Adherence to time discipline is beneficiary for the supplier and the recipient as well. Even the authorities have no option to validate such lapse.

Consult your tax advisor about the issue of credit/debit note for reconciliation, if feasible.

[KASTURI SETHI]

I support the views of Sh. Sadanand Bulbule, Sir. I have observed that Supreme Court and High Courts are very strict in this context.  Otherwise also delay signifies bad impression on all fora.

[Shilpi Jain]

From suppliers point of view - there could be a penalty for this.

From recipient point of view - ITC is at risk.

As you rightly mentioned it is only a procedural lapse. Actually, in cases where invoice is requierd to be issued within 30 days after service or before removal of goods, and invoice is issued later, there is only interest and general penalty applicable. ITC is not restricted in hands of recipient.

On this basis, in this scenario also, apart from general penalty no other consequence should apply.

But this relief may be given only in the Tribunal / Courts

AI Summary

E invoice validity: procedural non-registration can nullify invoices, risking input tax credit and attracting penalties unless challenged in tribunals. Failure to register e-invoices on the IRP within the prescribed 30-day period renders those invoices invalid despite tax payment and reporting; this procedural lapse commonly jeopardises the recipient's input tax credit and exposes the supplier to penalties, while reconciliation via credit/debit notes or litigation before tribunals may be considered.