These rules of GST are changing from next month, know how taxpayers will be affected

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These rules of GST are changing from next month, know how taxpayers will be affected

Some changes are going to happen in the new indirect tax system Goods and Services Tax (GST) from next month. Certain changes are made in GST from time to time to make tax laws effective, ease compliance and ultimately prevent tax evasion. There has also been a recent change in this episode. GST Network has given information about this.

no time limit yet

GST Network has told that now some companies will have to upload the electronic invoice within 7 days of the issue on the Invoice Registration Portal ie IRP. This rule will come into effect from May 1. This change is for those companies whose turnover is Rs 100 crore or more. At present, in such cases, the companies have to upload the electronic invoice on the IRP on the current date. This means that whenever the invoice is generated, it does not matter on the date of reporting.

GST Network Advisory

GST Network has issued an advisory (GSTN Advisory) for taxpayers regarding the latest changes. In the advisory, GST Network said, the government has decided to streamline the reporting of old invoices for businesses with an annual turnover equal to or above Rs 100 crore. That’s why time limit is being imposed for reporting old invoices on IRP.

taxpayers got time

GST Network said that in order to ensure timely compliance, taxpayers falling within the prescribed turnover limit will not get the facility to report invoices older than seven days on the date of reporting. All eligible taxpayers get enough time to comply with this change, that is why the government has decided to implement the change from May 1.

Old invoices will be rejected

GST Network has also clarified that the ban is applicable only on invoices. There is no time limit in case of reporting of debit or credit notes. Giving an example, GST Network explained that if an invoice is dated 1 April 2023, it cannot be reported after 8 April 2023. A validation system has been prepared for this on the invoice registration portal, which automatically rejects invoices older than seven days.

Required to claim ITC

If any taxpayer, on whom this change is going to be implemented, does not follow it from May 1, then they will not be able to take advantage of Input Tax Credit ie ITC. That is, businesses with a turnover of Rs 100 crore or more will be required to upload the invoice within seven days to avail input tax credit. For this reason, GST Network has instructed all eligible taxpayers to ensure compliance of the changes.

read this also: Keep these 8 things in mind in your salary, there will be a lot of savings in tax

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