E-invoicing has now become an integral part of GST compliance in India. In fact, over the years, with the reduced mandatory threshold turnover limit every time, the government has aimed to make it a general practice for maximum businesses. While this e-invoicing system has unified invoicing practices and format for all businesses, it has also made compliance slightly more complicated with varied rules and regulations. One such important rule is the e-invoice generation time limit.
The very recent enforcement of this time limit has left businesses mandated to learn about it and adhere to it. While initially it was applicable to businesses with Aggregate Annual Turnover (AATO) over ₹100 crores, the latest advisory by GSTN revised AATO threshold to ₹10 crores for the 30-day e-invoice time limit.
Let us learn about this time limit in detail below and how businesses can always ensure to comply with it.
What is the E-Invoice Generation Time Limit?
The e-invoice generation time limit defines the maximum period between the invoice date and the time it is reported on the Invoice Registration Portal (IRP) to generate an Invoice Reference Number (IRN). Under the current guidelines, users must upload invoices within 30 days from the invoice date. If you miss this window, the IRP will reject the invoice, which means it won’t be considered valid for GST compliance or for claiming input tax credit.
Changes in the E-Invoice Generation Time Limit Over Time
When e-invoicing was first introduced, there was no fixed deadline for reporting invoices. Over time, to prevent backdating and ensure timely reporting, regulators introduced a specific time limit. While a 7-day time limit was once a proposal, it never officially came into force. The very first-time limit came into effect in April 2023. Here’s how the key update was introduced:
- In April 2024, the government introduced a formal 30-day e-invoice generation time limit with an advisory.
- In November 2024, the latest update—documented in the einvoice time limit latest notification —expanded the rule by lowering the AATO threshold to ₹10 crore.
- This updated rule will be effective from 1st April 2025, meaning all invoices must be reported within 30 days of the invoice date for the affected businesses.
This update shall not apply to businesses with AATO less than ₹10 Crore.
What Happens if You Miss the 30-Day E-Invoicing Time Limit?
Missing the prescribed time limit for uploading your e-invoice can lead to several significant consequences:
- Invoice Rejection: The IRP will automatically reject invoices submitted after the 30-day period, making them invalid for GST purposes.
- Disrupted ITC Claims: In cases of rejection of an invoice, buyers will not be able to claim input tax credit on that transaction, which can affect cash flow and business relationships.
- Penalties: In cases of non-generation of e-invoice, 100% of the tax or ₹10,000, whichever is higher, is the penalty for each invoice.
- Administrative Burden: Rejected invoices may require cancellation and reissuance, leading to additional workload and potential errors.
- Compliance Risks: Failing to adhere to the 30-day deadline increases the risk of non-compliance, which could trigger penalties or additional scrutiny during audits.
Practical Steps to Ensure Compliance
To help you consistently meet the 30-day deadline and ensure non-rejection of your e-invoice, consider these measures:
- Automate Your Invoicing Process: Implement software like GSTrobo® that integrates directly with the IRP. Such software automatically upload invoices right after their generation.
- Set Internal Deadlines: If not using an automated e-invoicing software, aim to establish internal targets that requires finalization and reporting of invoices well before the 30-day mark.
- Keep Your Team Updated: Regularly brief your finance and accounting teams on the latest updates, including details from the e-invoice time limit latest notification.
- Monitor Official Channels: Stay informed by checking the GSTN Portal and the Invoice Registration Portal for any further updates.
Final Thoughts
The updated e-invoice generation time limit is a significant step toward ensuring timely and accurate GST reporting. With the einvoice time limit latest notification now extending this rule to businesses with an AATO above ₹10 crore, adapting your processes is essential. By implementing automated solution like GSTrobo® and proactive internal practices, you can avoid e-invoice rejections, maintain smooth GST compliance, and safeguard your input tax credit claims.
Frequently Asked Questions
1. What is the current e-invoice generation time limit under GST?
The current rule requires uploading the invoices to the IRP within 30 days from the invoice date.
2. Who does the current e-invoice generation time limit apply to?
With the latest update, the 30-day time limit applies from 1st April 2025. This applies to all businesses required to generate e-invoices under GST, specifically those with an AATO above ₹10 crore.
3. What happens if the user does not upload an invoice within 30 days?
Invoices submitted after 30 days are rejected by the IRP, rendering them invalid for GST compliance and potentially disrupting input tax credit claims.
4. When does the new 30-day time limit come into effect?
The 30-day rule was officially introduced in April 2024 and was expanded in November 2024. This expansion now covers businesses with an AATO above ₹10 crore, effective from 1st April 2025.
5. Who does the 30-day e-invoicing time limit not apply to?
The 30-day e-invoicing generation time limit is not applicable to businesses with AATO less than ₹10 crore.
6. What documents are eligible for 30-day e-invoicing limit?
The 30-day time limit covers e-invoices, credit notes, and debit notes.
7. Is e-invoice time limit applicable to businesses with ₹5 crore turnover?
No. The e-invoice generation time limit is not applicable in case of ₹5 crore turnover.
