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Effective April 1, 2025, key changes to e-invoice reporting rules will come into force. As part of ongoing efforts to streamline GST compliance, the Indian tax system is introducing a mandatory 30-day deadline for reporting e-invoices on the Invoice Registration Portals (IRP).
Previously applicable only to taxpayers with an Annual Aggregate Turnover (AATO) of ₹100 crore and above, this threshold has now been lowered to ₹10 crore as per the GST advisory issued on November 5, 2024. This article outlines the importance of the new e-invoicing deadline, who it applies to, and the steps businesses must take to ensure timely compliance
30-Day e-Invoice Deadline Now Applies to Businesses With ₹10 Crore Turnover
The Goods and Services Tax Network (GSTN) has tightened the e-invoicing window to improve compliance and efficiency. Beginning 1 April 2025, any business with an Annual Aggregate Turnover (AATO) of ₹10 crore or more must upload its e-invoices, credit notes, and debit notes to the Invoice Registration Portal (IRP) within 30 days of the document date.
How the Rule Has Evolved
| Advisory | AATO Threshold | Reporting Window | Effective From |
|---|---|---|---|
| 13 Sep 2023 | ≥ ₹100 crore | 30 days | 1 Nov 2023 |
| 5 Nov 2024 | ≥ ₹10 crore | 30 days | 1 Apr 2025 |
What the New Limit Means
Who’s Affected: All GST-registered businesses whose previous-year AATO is ₹10 crore or above.
Practical Impact: From 1 April 2025, an Invoice Reference Number (IRN) cannot be generated for any invoice, credit note, or debit note older than 30 days.
Transition Period: The five-month lead time gives affected taxpayers scope to upgrade accounting systems, train staff, and tighten invoice-approval cycles.
Unaffected Entities: Businesses with AATO below ₹10 crore may continue to report e-invoices without a statutory time cap.
Next Steps for Taxpayers
Review Turnover: Confirm whether your FY 2023-24 AATO meets or exceeds ₹10 crore.
Update Systems: Configure ERP or billing software to block uploads after 30 days automatically.
Align Workflows: Shorten internal approval times so invoices reach the IRP well before the deadline.
Train Teams: Educate finance, sales, and compliance staff on the revised timelines and penalties for late IRN generation
What Is e-Invoicing Under GST?
e-Invoicing, or electronic invoicing, is a system introduced by the Goods and Services Tax Network (GSTN) where B2B invoices are digitally authenticated before being used for GST compliance. Instead of manually uploading invoices on the GST portal, businesses generate invoices using their internal accounting or ERP systems and submit them to the Invoice Registration Portal (IRP).
The IRP validates the invoice and issues a unique Invoice Reference Number (IRN), along with a QR code. This validated invoice data is then automatically shared with the GST portal and e-way bill system, streamlining return filing and reducing manual effort.
Initially rolled out for large enterprises, the GST Council has progressively extended e-invoicing to medium and small businesses, making it a standard compliance requirement across various turnover thresholds
Who Must Generate e-Invoices? — Applicability Based on Turnover
The requirement to generate e-invoices is based on a business’s Annual Aggregate Turnover (AATO). Below is a phased rollout of e-invoicing applicability:
| Phase | Turnover Threshold (AATO) | Applicable From |
|---|---|---|
| I | ₹500 crore and above | 1st October 2020 |
| II | ₹100 crore and above | 1st January 2021 |
| III | ₹50 crore and above | 1st April 2021 |
| IV | ₹20 crore and above | 1st April 2022 |
| V | ₹10 crore and above | 1st October 2022 |
| VI | ₹5 crore and above | 1st August 2023 |
As per the latest compliance update, from 1st April 2025, all businesses with an AATO of ₹10 crore or more must not only generate e-invoices but also ensure that each invoice is reported to the IRP within 30 days of its issuance
Benefits of the 30-Day e-Invoice Reporting Limit for SMEs
The extension of the 30-day e-invoice reporting deadline to businesses with an annual turnover of ₹10 crore brings multiple advantages, especially for small and medium enterprises (SMEs):
Lower Compliance Pressure: SMEs now have a broader window to prepare and report invoices, reducing the likelihood of errors and avoiding penalties for late submission.
Better Cash Flow Planning: The added flexibility helps businesses manage cash flows more efficiently by aligning invoice processing with payment cycles.
Boost to e-Invoicing Adoption: With a manageable timeline, more SMEs may feel encouraged to adopt e-invoicing, promoting transparency and streamlining tax compliance across the ecosystem
Risks of Missing the 30-Day Reporting Window
Failing to report e-invoices within the 30-day timeframe can lead to several operational and financial setbacks:
Invoice Rejection by IRP: Invoices reported beyond the 30-day limit will be automatically rejected by the IRP, making it impossible to generate an IRN.
Need to Re-Issue Invoices: Businesses may be forced to cancel and re-issue invoices, leading to confusion, extra work, and the risk of duplication.
Disruption in ITC Claims and Cash Flow: Delays in reporting can interrupt the timely flow of Input Tax Credit (ITC), affecting vendor relationships and liquidity.
Risk of Penalties and Audits: Consistent non-compliance could trigger GST audits, legal notices, and financial penalties
Simplify e-Invoicing with LEDGERS by IndiaFilings
Adopting automation is the smartest way to stay compliant in the dynamic GST environment. LEDGERS by IndiaFilings offers a robust solution to streamline your e-invoicing process:
Auto-Generate e-Invoices & E-Way Bills: Instantly generate invoices and e-way bills at the point of sale or billing.
ERP Integration: Connect seamlessly with your existing billing or ERP systems to eliminate manual data entry.
Real-Time GST Updates: Ensure accurate, timely reporting to the GST portal to avoid penalties and rejections.
End-to-End Compliance: Achieve full compliance with minimal manual intervention, giving your team more time to focus on growth
About the Author
Rohan
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