The Central Board of Indirect taxes and Customs (CBIC) has vide Notification No. 06/2021 – Central Tax dated 30th March, 2021 has amended Notification No. 89/2020 – Central Tax dated 29th November, 2020.
It is important to note here that vide the latter Notification the Government had waived the penalty leviable under Section 125 of the CGST Act, 2017 (i.e. general penalty) for non-compliance of provisions of Notification No. 14/2020–Central Tax dated March 21, 2020 (dynamic QR Code provisions) between the period from December 1, 2020 to March 31, 2021, subject to the condition that the said person complies with the provisions of the said notification from April 1, 2021.
The Central Board of Indirect Taxes and Customs (CBIC) has now vide Notification No. 06/2021 – Central Tax dated 30th March, 2021 has waived the penalty for non-compliance of capturing dynamic QR code in GST Invoice from December 2020 to June 30, 2021, and fixed deadline of compliance to July 1, 2021. Thus in regard of dynamic QR code on GST invoice we can say that taxpayers have got a further breather of three months and they can now start to incorporate dynamic QR Code on their B2C invoices from 1st July,2021 as against the current timeline of 1st April, 2021.
It has been mandated vide above Notification, that in the Notification No. 89/2020 – Central Tax dated 29th November, 2020., in the first paragraph, for the figures, letters and words, “31st day of March”, the figures, letters and words “30th day of June”, shall be substituted. In the first paragraph, for the figures, letters, and words, “1st day of April”, the figures, letters, and words “1st day of July”, shall be substituted.
It is pertinent to mention here that QR Code provisions were made applicable initially from October 1, 2020, in respect of B2C supplies by registered persons whose aggregate turnover in any preceding financial year from 2017-18 onwards exceeds Rs. 500 crore (except few exempted persons) vide Notification No. 14/2020–Central Tax dated 21st March, 2020, which was later deferred to December 1, 2020, vide Notification No. 71/2020–Central Tax dated 30th September, 2020.
It may be noted that purpose of implementing dynamic QR Code is to enable and encourage digital payments where buyer can scan the dynamic QR code and make payment from mobile wallet directly.
Today, many shops have static QR code at the payment counter which is scanned by the buyer but the buyer has to enter the amount to be paid to the shop (in the mobile payment App). The dynamic QR code, on the other hand, will have the payment details and thus ‘scan and pay’ in one go will be possible.
Also Read: GST e-invoicing: Differences between B2B-invoice QR Code and B2C Dynamic QR Code
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
