CA Niteshkumar Delvadiya

Important Change wef Today i.e. 1st May 2023 New GST rule: 7 days’ limit to report old invoices on the e-invoice IRP portals From Ist May, big GST assesses will have to be extra careful as the new invoicing rule is coming into effect.  Under this, every assesses with a turnover of Rs.100 crore or more is prohibited from reporting invoices that are more than 7 days old on the date of reporting. The new mechanism will help in moving almost real-time tracking of economic activities.  Note: e-Invoice is applicable with Turnover of Rs. 10 crores or above but the time limit of 7 days is applicable for turnover of Rs. 100 Crores and above. Also, not following the advisory would attract #penal consequences under the “GST law’s”. Consequences and penalties If a taxpayer falls under the criteria for e-invoicing but fails to generate the e-invoice, there can be consequences and penalties. 1Penalty: Under Section 122 of the CGST Act, 2017, any person who fails to generate an e-invoice as ...

If a taxpayer falls under the criteria for e-invoicing but fails to generate the e-invoice, there can be consequences and penalties. 1Penalty: Under Section 122 of the CGST Act, 2017, any person who fails to generate an e-invoice as per the requirements can be liable to a penalty. The penalty for non-compliance is INR 10,000 or an amount equivalent to the tax evaded, whichever is higher. 2Notice and Demand: Tax authorities may issue a notice to the taxpayer demanding an explanation for non-compliance with e-invoicing requirements. The taxpayer must respond to the notice within the stipulated time, providing an explanation for the non-compliance. If the explanation is unsatisfactory, the tax authorities may impose penalties. 3Input Tax Credit Denial: If a supplier fails to generate an e-invoice, the recipient of the supplies may face issues in claiming Input Tax Credit (ITC) on the supplies. As per GST laws, ITC can only be claimed if the details of the invoice are uploaded by the suppl...