India mandate: live but relaxed until Nov 1st – press release from the Indian Government
Yesterday (30th September 2020), the Indian government released an urgent press release to clarify a relaxation of the e-invoice regulation, which came into effect today, October 1st 2020. The press release states that no penalties will be imposed if the Invoice Reference Number (IRN) is obtained from the Invoice Registration Portal (IRP) within 30 days of the date of invoice.
Note: this relaxation is only valid for invoices issued before 1 November 2020. After this date, the relaxation will no longer be in force and penalties will apply in case of non-compliance with the CGST rules.
This “grace period’ has been granted following news that many businesses that are subject to the mandate are still not ready for the implementation.
We are seeking clarity on if invoices need to be re-issued once the IRN has been obtained. Early indications suggest it is likely that invoices will not need to be credited and re-issued as the invoice will have been appropriately registered with the Invoice Registration Portal and buyers should be able to reclaim GST.
Read the original press release here (Typos in the text are not Tungsten’s).
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