Companies with turnover more than Rs 500 crore will have till December 1 instead of October 1, to implement dynamic quick response (QR) code on their invoices issued to customers.
Customers typically scan a QR code to make digital payments. The Central Board of Indirect Taxes and Customs (CBIC) had mandated that companies must publish QR code on their invoices issued to customers.
“While the industry was hoping for entire e-invoicing to be deferred, on account of time constraints, the B2C QR code deferment would only provide some respite, nothing substantial” said Harpreet Singh, partner indirect tax at KPMG India said.
“This deferment would be quite a welcome one and now businesses would be looking for both a detailed clarification on this compliance for B2C invoices,” said Abhishek Jain, Tax Partner at EY.
Earlier in the month, the GST Network issued clarifications through frequently asked questions on electronic invoicing standards for businesses above Rs 500 crore turnover, where it said that a dedicated mobile app to scan and verify the validity of QR codes will be provided by the government.
An industry executive said that QR codes were a small part of the electronic invoicing standards that the government intended to implement, part of which will be implemented from October 1. E-invoicing for business to business transactions has not been deferred, despite requests from the industry to permit voluntary e-invoicing till January 1, 2021, and make it mandatory post this limit, so as to reduce compliance burden just ahead of the critical festive season.
Companies in the FMCG, consumer durables, auto and other sectors are relying on the October to December quarter, which will have Diwali and Christmas, for revival in demand following an extended lull that began from April this year. The relief would have helped industry already suffering from the impact of the Covid 19 pandemic and the lockdowns that followed.
Source : PTI