Introduction:
Starting from November 1, significant changes are set to take effect in the Goods and Services Tax (GST) regime in India. One of the key changes is the introduction of a 30-day time limit for issuing e-invoices under GST. This new rule will have a substantial impact on taxpayers, especially those with a turnover of more than Rs. 100 crore.
Detailed Analysis:
i. 30-Day E-Invoice Deadline: For the first time, a strict deadline of 30 days for issuing e-invoices under GST will be enforced. This deadline applies specifically to taxpayers with an annual turnover exceeding Rs. 100 crore. After the 30-day window, taxpayers falling into this category will no longer be able to generate e-invoices. Failure to issue the e-invoice within this timeframe will render the transaction invalid, and recipients of goods and services will not be eligible for input tax credit.
ii. Mandatory Compliance: Previously, there was an advisory suggesting that invoices be registered within a certain time frame, but it was not obligatory. Now, compliance with the 30-day deadline has become mandatory on the GST e-invoice portal. This change is aimed at ensuring that businesses promptly issue e-invoices and comply with the GST regulations.
iii. Two-Factor Authentication: Another significant update is the implementation of two-factor authentication for taxpayers. To access the portal and conduct transactions, users will need to provide additional verification beyond their ID and password. Specifically, an OTP (One-Time Password) will be required along with the standard login credentials. This extra layer of security is intended to safeguard taxpayer information and protect against unauthorized access.
iv. Applicability of Two-Factor Authentication: The two-factor authentication requirement will come into effect from November 1, but it will apply to taxpayers with a turnover exceeding Rs. 20 crore. This authentication process is primarily utilized in the e-invoice and e-way bill systems, which are crucial components of the GST framework.
Conclusion:
The introduction of a 30-day deadline for issuing e-invoices under GST represents a significant change in the Indian tax landscape. This rule aims to streamline the invoicing process and enhance compliance, particularly among large businesses. Taxpayers with turnovers exceeding Rs. 100 crore must ensure that they adhere to this new requirement to avoid complications related to input tax credit.
Additionally, the implementation of two-factor authentication for taxpayers with turnovers exceeding Rs. 20 crore is a positive step toward enhancing data security and preventing unauthorized access to the GST portal. These changes underscore the government’s commitment to promoting transparency, efficiency, and security within the GST ecosystem, ultimately benefiting both taxpayers and the broader economy.
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Whether this new rule supported by GST Act or Rules?