Major GST Update: AATO ₹10 Cr+ Businesses Must Report e-Invoices in 30 Days

The Goods and Services Tax Network (GSTN) has announced a major update that will revolutionize the invoicing processes of businesses across India. From April 1, 2025, taxpayers with an annual aggregate turnover (AATO) of Rs 10 crore and more will have to file e-invoices on the invoice registration portal (IRP) within 30 days from the date of issuance. The intention behind this step is to bring more compliance, check tax evasion, and simplify the GST environment—but it's done with tough timelines and hefty fines for defaulters.

Major Details of the New Mandate

The new directive is aimed at companies with an AATO of Rs 10 crore and above, following the phased implementation of e-invoicing that started in 2020. Here's what you should know:

Applicability: Companies with AATO of Rs 10 crore and above.
Deadline: E-invoices have to be uploaded to the IRP within 30 days of issuance.
Effective Date: April 1, 2025.
Consequences: Failure to comply will lead to fines and disapproved invoices, hurting cash flow and claims of tax credits.

Penalties for Failure to Comply

The GSTN has stipulated severe penalties to enforce this regulation:

Non-Issuance of E-Invoice: Penalty of 100% tax payable or ₹10,000 per invoice—whichever is higher.
Incorrect or invalid E-Invoice: ₹25,000 per invoice.
Delayed Uploads: Invoices uploaded outside the 30-day timeframe will be rejected automatically by the system and will be invalid for GST purposes.

These fines serve to emphasize the need for timely and correct e-invoice reporting. Non-compliant businesses stand not only to lose money but also to suffer operations through rejected invoices.

Act Now: Clear Your Backlog Before March 31, 2025

With the new rule taking effect on April 1, 2025, the GSTN has made a timely reminder: all pending e-invoices generated before March 31, 2025, need to be uploaded by then. Any delay after March 31 may result in system rejections and possible tax issues. This transitional timeline leaves companies with a small window of opportunity to clear backlogs and get up to speed with the new requirements.

What Businesses Should Do to Prepare

To make a seamless transition and stay away from fines, professionals advise taking the following steps at once:

Check Your Invoicing Process: Examine your existing process to verify that e-invoices are sent and posted within the 30-day window.
Clear Pending Invoices: Post all pending e-invoices prior to the March 31, 2025 deadline.
Train Your Team: Train finance and accounting personnel on the new rules of compliance and fines.
Integrate with IRP: Streamline your invoicing process by integrating systems with the Invoice Registration Portal for real-time compliance.

Why This Matters

The GSTN's imposition of tighter deadlines for e-invoicing is a part of its larger vision to establish an honest and effective tax regime. With the requirement of timely uploads, the government is seeking to suppress malpractices in input tax credit (ITC) claims and enhance compliance throughout the supply chain. But for businesses, this is a shift towards tighter operating discipline and higher expenses for those not ready.

Get Ahead of the Curve

With less than a month until the backlog deadline and only weeks until the rule becomes effective, companies are being encouraged to move quickly. Whether it involves software updates, settling outstanding invoices, or getting professional advice, it is time to plan ahead. For those requiring assistance, tax professionals and compliance companies are rising to provide customized solutions.

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Also Read: The Invoice Registration Portal (IRP) Under GST