Effective April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of ₹10 crore or more must report GST e-invoices, credit notes, and debit notes to the Invoice Registration Portal (IRP) within 30 days of the invoice date. Invoices older than 30 days will be rejected by the system, preventing Input Tax Credit (ITC) claims for buyers.
e-Invoice Time Limit: From April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) of Rs. 10 crore+ must upload e-invoices to the Invoice Registration Portal (IRP) within 30 days. It reduces the chances of fake GST invoices, allowing only genuine input tax credit claims.
In an earlier advisory dated 13th September 2023, GSTN introduced a 30-day time limit for taxpayers with an annual turnover of 100 Crores or more. Under that rule, any Invoice, Credit Note, or Debit Note older than 30 days from the date of issue could not be reported on the IRP.
The E-Invoice Applicability Limit in 2025
In 2025, the limit is ₹5 crore. That means if your aggregate turnover in any financial year since 2017-18 is ₹5 crore or more, you need to issue e-invoices for B2B transactions, exports, and certain government supplies.
Under “30 days payment terms,” the buyer must pay the seller within 30 days after the invoice date. Depending on the agreement, these terms might also be phrased as “net 30” or include variations such as “30 days from receipt of goods” and “30 days after the end of the month.”
30-day e-invoicing upload rule: Businesses with an AATO of ₹10 crore or more must upload their e-invoices to the IRP within 30 days of the invoice date (effective from April 1, 2025), after which the system will reject them.
Overview. This regulation requires contracting authorities to include the following terms in every public contract: to pay contractors any sums due within 30 days of an invoice being deemed as valid and undisputed. to consider and verify any invoices in a timely manner.
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.
Is the e-way bill date and invoice date the same? The e-way Bill's generation date is known as the e-way bill date. It need not match the date on the invoice.
Any supplier of a taxable service who is an insurer, banking company, financial institution, or Non-banking financial company is exempt from the applicability of e-invoicing. When the supplier is a goods transport agency providing services related to the transportation of goods by road in a goods carriage.
Net 30 means that payment is due within 30 days of when the invoice is received. Essentially, a seller who sets payment terms of net 30 is extending 30 days of credit to the buyer after goods or services have been delivered. Net 30 means that the buyer has 30 calendar days after they've been billed to remit payment.
Penalty for non generation of e Invoice and incorrectness
Below is the penalty for non generation of e invoice along with the penalty for incorrect or invalid e-invoice: Penalty for non generation of e invoice – 100% of the tax due or Rs. 10,000, whichever is higher, for every invoice.
E-invoicing rules include:
E-invoicing for small businesses provides a digital-first approach that eliminates manual processes, speeds up payments, and enhances compliance. This guide explores the advantages of e-invoicing, its impact on small business efficiency, and how it compares to traditional invoicing.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
This violation due to e-invoice non-generation attracts a penalty of 100% of the tax value or Rs 10,000 per instance, whichever is higher.
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.
Here are some common e-way bill errors to avoid:
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.
Buyers have 72 hours from the time of validation to request rejection of an e-invoice if errors are identified. The request must specify the reason for rejection.
The cancellation period for an e-invoice is strictly limited to 24 hours from the time of its generation. This means that the taxpayer must ensure that any necessary cancellations are completed within this window.
Common Problems In The Three Way Matching Process
To calculate a Net 30 due date:
Legislative Framework
Treasury Regulation 8.2. 3 states that, "Unless determined otherwise in a contract or other agreement, all payments due to creditors must be settled within 30 days from receipt of an invoice or, in the case of civil claims, the date of settlement or court judgment”.