GST Invoice: Penalty Waiver Extended For Failure to Capture Dynamic QR Code

The Central Board of Indirect Taxes and Customs (CBIC) has extended the deadline for non-implementation of the dynamic quick response code, which is needed for companies with a turnover of more than Rs 500 crore, until June 30, 2021.

The Board stated in a notification released Tuesday that the three-month waiver will be available with the condition that enforcement will be necessary beginning July 1, 2021. In November 2020, the government waived the penalty for non-compliance for the period between December 1, 2020 and March 31, 2021, thus resetting the compliance date to April 1, 2021.

The industry has requested a period of three months in implementing the QR code for electronic business-to-customer invoices, citing lack of clarity in law and poor ground preparedness for its own end.

The government only recently issued some clarifications on B2C QR code issues, leaving the industry with very little time to incorporate the necessary improvements in their ERP systems.

GSTN electronically authenticates all B2B invoices by e-invoicing, which is an electronic invoicing system. Each invoice sent to the Invoice Registration Portal is assigned a unique number (IRP).

A QR code is a fast response code. It includes coded e-invoice information. It is a bar code version in two dimensions and can be scanned on any mobile device. B2C QR code has to be self-generated by the taxpayer.

Incorrect invoicing in accordance with Section 125 of the CGST Act shall be subject to a penalty of Rs.25,000 Leviable on failure to comply on 1 June 2021.