If an e-invoice is not generated and reported to the Invoice Registration Portal (IRP) within 30 days of the invoice date, the IRP will reject it, rendering it invalid for GST compliance. This results in the loss of Input Tax Credit (ITC) for the buyer, potential penalties for the supplier ($10,000 or 100% of tax due), and mandatory manual reporting in GSTR-1.
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 Under GST Rules
For not issuing an e-Invoice: Penalty of ₹10,000 per invoice or 100% of the amount of tax payable, whichever is greater. Wrong or incomplete information: A penalty of ₹25,000 may apply.
IRB recognises the challenges faced by taxpayers to implement e-Invoice. They have introduced a six-month grace period to help taxpayers transition to the new e-Invoicing rules. The details are as follows: Flexibility for 6 months.
The e-invoicing system is mandatory for all B2B and B2G businesses with an annual aggregate turnover exceeding Rs. 5 crore. Starting 1 April 2025, businesses with an AATO of Rs. 10 crore or more must upload their invoices to the IRP within 30 days of issuance.
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.
Presently, system allows for the invoices to be registered for previous period. So, if you have missed uploading, then you may still generate e-Invoice for the previous period invoices.
Is there a time limit for issuing an invoice? Under the Limitation Act 1980, invoices can be issued up to six years after the work was completed or the goods were delivered. While there is no legal restriction within this time frame, issuing invoices promptly is always best to avoid disputes or complications.
After two days, recipients/suppliers must regenerate the file for download. This applies to "For Period" and "List of IRNs" tabs. 7. How to Download e-Invoice without IRN?
As per the latest amendment in August 2023, all the businesses registered under the GST Act, with a total turnover exceeding Rs. 5 crores, are required to generate an e-invoice. Earlier, this threshold was Rs. 10 crores.
As there is no federal mandate for e-Invoicing, there are currently no specific penalties for non-compliance. However, in states where e-Invoicing is required for B2G transactions, failure to comply could result in delays in payment or rejection of invoices.
Yes. e-invoicing by notified persons is mandated for supply of goods or services or both to a registered person.
Failure to issue e-Invoice is an offence under Section 120(1)(d) of the Income Tax Act 1967 and will result in a fine of not less than RM200 and not more than RM20,000 or imprisonment not exceeding 6 months or both, for each non-compliance.
There are two main types of e-invoice penalties: Penalty for failure to create an e-invoice: This penalty is applied if a company fails to generate an e-invoice for a taxable supply. The penalty is equal to either 100% of the tax owed on the supply or Rs. 10,000, whichever is greater.
Payment terms are included in contracts and invoices to establish when the buyer is expected to pay for their purchase. Under “30 days payment terms,” the buyer must pay the seller within 30 days after the invoice date.
However, if, due to unavoidable circumstances, the taxpayer cannot generate it before the movement, the same has to be issued during the movement of goods but not earlier than 180 days after the issuance of the invoice date.
If the Tax Invoice is not issued by the supplier timely, the recipient will not get the GST Credit on Input and hence, such credit can not be adjusted with the GST Outward Liability and hence, it will directly effect on the Working Capital.
Extended to 10+ Crore AATO
This means that starting from 1st April 2025, such taxpayers cannot generate an Invoice Reference Number (IRN) for any document (Invoice, Credit Note, or Debit Note) older than 30 days from its date of issue.
The penalty for not generating an e-invoice despite exceeding the specified turnover threshold is 100% of the tax amount or Rs 10,000 per default instance, whichever is higher.
The government extended the enforcement deadline for Phase 4 e-invoicing from July 1, 2026 to January 1, 2027. This means the grace period—during which businesses can implement e-invoicing without facing penalties—has been doubled from six months to a full 12 months throughout 2026.
A late charge fee is a penalty amount you charge when a customer fails to pay by the invoice due date. Unlike interest fees that compound over time, these fees are added to the unpaid balance for each period payment remains overdue.
If you have an unpaid invoice, here are some steps you can take to try and resolve the situation:
One of the biggest errors businesses make in freight e-invoicing is failing to validate invoice data before submission. Without proper validation, invoices may contain errors, missing data, or mismatched charges, leading to rejections by government tax portals or payment delays from clients.
Backdating invoices isn't inherently illegal—but misusing it to manipulate revenue or tax periods risks serious penalties. In the US, strict accounting standards like ASC 606 and IRS rules require invoice dates to accurately reflect when goods or services were delivered—not when paperwork is processed.