QR codes may be mandatory for all Shops to Pay GST Invoices

By | May 14, 2019
(Last Updated On: May 14, 2019)

QR codes may be mandatory for all Shops to Pay GST Invoices

The government is now looking to make a quick response (QR) code-based payment method using the Unified Payments Interface (UPI) mandatory for all shops and establishments beyond a certain threshold.

The move had been approved by the GST Council before the Lok Sabha polls juggernaut started rolling and details of the payment mechanism are currently being worked out at the finance ministry.

The National Payments Corporation of India (NPCI), an umbrella organisation for all retail payments in India with  56 member banks, has reportedly been roped in to roll it out nationally. UPI is a real-time payments system that enables digital transactions between banks without the need to input IFSC code and other bank account details. All users need to do is make sure is that their mobile number is linked to their bank account(s).

Sources in the know told that the idea is to introduce the payment mechanism for B2C transactions and bring about behavioural change, adding that consumers opting for this method of payment will be eligible for GST benefits along with establishments. In the medium to long-term, QR codes may also be introduced on invoices.

Last August 2018, the GST Council had even announced that states would roll out incentives for digital transactions on a pilot basis. The idea was to give customers making payments using Rupay card and BHIM UPI a cashback of 20 per cent of the total GST amount, subject to a cap of Rs 100.

The states had to volunteer for this pilot project and Council had decided to take a call on a pan-India implementation based on their experience.

Previously states such as West Bengal were reportedly not in favour of the move, arguing that it would be against the interests of rural consumers. But taking cues from success stories globally, including China, the government is now moving full throttle on hashing out the new digital payment architecture.

It has cause for optimism – after all, total payments through UPI have shot up to Rs 1.33 lakh crore in March 2019 from a meagre Rs 3.1 crore in August 2016.

E-Invoices from GST Portal

In order to bring an effective tool to curb tax evasion under the Goods and Services Tax ( GST ) regime, the Central Government is planning to launch the system of electronic invoice. The new system will allow the businesses to issue invoices, or bills, directly via the GST Network, and the data will be available to the authorities right away.

Committee Constituted by the Govt Click hereF.No 189/Generation of Invoice /GSTC/2019 Dated 22.04.2019

Thereafter Govt has said GST B2B invoices to be issued electronically by September 2019

By September 2019, all invoices for business-to-business sales by entities beyond a specified turnover threshold will be generated on a centralised government portal, a move aimed at curbing the menace of fake invoices and evasion of GST, officials said.

“E-invoice for B2B transactions will be rolled out in next three-four months in a phased manner. The entire invoice would have to be generated on a government portal,” an official told PTI.

Related Post GST Tax Invoice : Free Study Material

Direct Taxes Ready Reckoner
Service Tax Ready Reckoner
Company Law Ready Reckoner
tax deduction at source

Leave a Reply

Your email address will not be published. Required fields are marked *