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Regulatory Roundup: Latest Updates from April 2023

Advisory on Bank Account Validation

Updated Advisory: Time limit for Reporting Invoices on the IRP Portal

NOTIFICATION NO. 03/2023? CENTRAL TAX 

NOTIFICATION NO. 06/2023 - CENTRALTAX 

NOTIFICATION  07/2023?CENTRALTAX 

eInvoice India

eInvoice KSA

eInvoice-France

eInvoice-USA:


India

Advisory on Bank Account Validation

The GSTN has integrated bank account validation functionality with the GST system to ensure that taxpayers provide correct bank account details. Taxpayers can view the validation status in the Bank Account Status tab under ?My Profile? in the FO portal. They will also receive the status detail on their registered email and mobile number after the validation is completed.

Updated Advisory: Time limit for Reporting Invoices on the IRP Portal

The government has decided to impose a time limit on reporting old invoices on the e-invoice IRP portals for taxpayers with AATO greater than or equal to 100 crores. Taxpayers in this category will not be allowed to report invoices older than 7 days on the date of reporting to ensure timely compliance. This restriction will apply to all document types for which IRN is to be generated, including credit/debit notes, which must also be reported within 7 days of issue.

There will be no such reporting restriction on taxpayers with AATO less than 100 crores. The new time limit will be implemented from 01.05.2023 onwards to provide sufficient time for taxpayers to comply.

NOTIFICATION NO. 03/2023? CENTRAL TAX 

The registered person has until June 30, 2023, to apply for revocation of cancellation of their registration. They can only file the application after submitting all due returns and paying any outstanding tax, interest, penalty, and late fees. There will be no further extension of time for filing the application.

NOTIFICATION NO. 06/2023 - CENTRALTAX 

The government has issued a notification that registered persons who did not furnish a valid return within 30 days of receiving the assessment order before February 28, 2023, can have the assessment order deemed withdrawn if they follow special procedures. They must furnish the return by June 30, 2023, and pay interest and late fees as required by the relevant sections of the Act.

NOTIFICATION  07/2023?CENTRALTAX 

Serial Number

Class of Registered Person

Amount

1

 

Registered Persons Having Aggregate

Turnover of up to five crore rupees in the relevant financial year

Twenty-five rupees per day, subject to a maximum of an amount calculated at 0.02 percent. of turnover in the State or Union territory

2

 

Registered persons having an aggregate turnover of more than five crores? rupees and up to twenty crore rupees in the relevant financial year.

Fifty rupees per day, subject to a maximum of an amount calculated at 0.02 percent of turnover in the State or Union territory.

 

eInvoice India:

Ministry of Finance (CBIC) in a notification issued on May 10th, 2023, reduced the threshold limit of mandatory B2B eInvoicing from Rs. 10 crores to Rs. 5 crores. All the taxpayers with AATO of more than 5 crores must comply with eInvoicing from August 1st, 2023.

https://taxinformation.cbic.gov.in/view-pdf/1009732/ENG/Notifications

eInvoice KSA:

ZATCA has released the criteria for selection of wave 4 participants for phase 2 which is integration phase. Taxpayers whose revenues subject to VAT exceeded (150 Million Saudi Riyals) during 2021 or 2022 should integrate their e-invoicing solutions with (FATOORA) Platform starting from November 1, 2023.

https://zatca.gov.sa/en/MediaCenter/News/Pages/news_1039.aspx

eInvoice-France

France has mandated the eInvoice for B2B transactions starting from July 2024 in a phased manner. Chorus pro is the government portal where all the eInvoices must be registered. Taxpayers can directly connect to Chorus pro or through partner dematerialization platform (PDP).

The timeline to comply with mandatory eInvoicing can be found in the table below.

 

 

Company Size

Receive of e-Invoice from

Issue of e-Invoice from

1st July 2024

1st July 2024

1st Jan 2025

1st Jan 2026

Large Companies

 

 

 

 

Mid-Size Companies

 

 

 

 

Small, Medium and Micro Enterprises

 

 

 

 

 

The criteria to identify the company size is as follows.

  • Large company: Workforce > 5,000 or turnover > ?1.5 billion and balance sheet total > ?2 billion
  • Medium-sized company: 250 < workforce < 5,000 and turnover < ?1.5 billion or balance sheet total < ?2 billion
  • Microenterprise: Workforce < 10 + turnover < ?2 million or balance sheet total < ?2 million
  • Small and Medium Enterprises: 10 < headcount < 250 + turnover < ?50m or balance sheet total < ?43m

eInvoice-USA:

Business Payments Coalition has launched Digital Business Network Alliance in USA. This exchange framework is planned to be available for use by all businesses via the service provider later this year.