The Central Board of Indirect taxes and Customs (CBIC) vide Notification No. 89/2020 – Central Tax dated 29th November, 2020 has 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.
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.
