India's e-invoicing compliance landscape changed significantly on April 1, 2025, with the introduction of a strict 30-day reporting deadline for businesses with annual aggregate turnover (AATO) of Rs 10 crore and above. Previously, this time limit applied only to businesses with AATO of Rs 100 crore or more. The GSTN advisory dated November 5, 2024, gave businesses sufficient time to prepare, but non-compliance now results in loss of input tax credit (ITC) and invoice rejection by the Invoice Registration Portal (IRP). This comprehensive guide explains the changes, consequences, and how to ensure your TallyPrime setup is ready.
Understanding the New E-invoicing Rules
- Current e-invoicing applicability: Rs 5 crore AATO (effective August 1, 2023)
- New 30-day reporting rule: Applies to businesses with AATO Rs 10 crore+ from April 1, 2025
- Previous threshold: 30-day limit applied only to Rs 100 crore+ businesses (from Nov 1, 2023)
- Expanded coverage: More businesses now under stricter compliance timeline
- GSTN Advisory dated November 5, 2024 - official notification details
What is the Invoice Registration Portal (IRP)?
- Role of IRP: Central system for e-invoice validation and IRN generation
- Invoice Reference Number (IRN): Unique identifier for each e-invoice
- How IRP validates invoice data against GST records
- Integration between IRP, GSTR-1, and e-Way Bill systems
- Multiple IRP providers available (NIC, Clear, Iris, etc.)
Consequences of Non-Compliance
- Invoice rejection: IRP will reject invoices older than 30 days
- No IRN generation: Cannot generate Invoice Reference Number after 30-day window
- Loss of ITC: Buyer cannot claim input tax credit on rejected invoices
- Re-issuance required: Businesses may need to re-issue invoices, causing confusion and duplication
- Administrative burden: Increased compliance risk and audit exposure
- Cash flow impact: Delayed ITC claims affect working capital
Who Needs to Comply?
- Calculate your AATO: Aggregate turnover from FY 2017-18 onwards
- Current mandatory threshold: Rs 5 crore AATO (since August 1, 2023)
- New 30-day reporting applies to: Rs 10 crore+ AATO businesses
- Exemptions: Composition scheme taxpayers, certain sectors (insurance, banking services)
- Check your eligibility on GST portal under Registration Details
Case-Insensitive Invoice Numbers (June 2025 Update)
- Effective June 1, 2025: IRP treats invoice numbers as case-insensitive
- Example: abc101, ABC101, Abc101 all considered the same
- Auto-conversion to uppercase before IRN generation
- Alignment with GSTR-1 invoice number handling
- Prevents duplication and ensures consistency across systems
Configuring TallyPrime for E-invoicing Compliance
- Enable e-invoicing: F11 > Statutory & Taxation > Enable e-invoicing
- Configure IRP credentials: Enter IRP username, password, and GSTIN
- Set up automatic IRN generation on invoice creation
- Create workflow: Invoice creation > IRN generation > e-Way Bill (if applicable)
- Bulk e-invoice generation in TallyPrime for high-volume businesses
- Monitor pending invoices: Use TallyPrime's e-invoice pending report to track 30-day deadline
- QR code integration: Automatic QR code embedding on e-invoices
30-Day Compliance Checklist
- Daily monitoring: Track invoice issuance dates and IRN generation status
- Automated alerts: Set up reminders for invoices nearing 30-day limit
- Process optimization: Streamline approval workflows to prevent delays
- Team training: Ensure accounts staff understands 30-day deadline
- Backup plan: Establish protocol for rush IRN generation if deadline approaches
- Regular reconciliation: Match TallyPrime invoices with IRP portal status
Struggling with e-invoicing compliance or TallyPrime configuration? Mark IT Solutions specializes in Tally customization and GST compliance automation. We can configure your e-invoicing workflow, train your team, and ensure you never miss the 30-day reporting deadline. Schedule a consultation today.