Finance
By: Shree1news, 30 NOV 2020
The government has deferred until 1 April a penalty provision for issuing invoices with out fast response (QR) code by massive businesses that was to kick in from Tuesday, mentioned a government official.
The requirement of QR code on retail invoices by companies with more than ₹500 crore sales was to return into force from 1 December. It has now waived off penalties for breaching this requirement throughout the 1 December to 31 March period provided the business complies with this requirement from 1 April.
The penalty relevant is below part 125 of the Central Goods and Services Tax (CGST) Act, dealing with a normal penalty of ₹25,000 if no different particular penalty is prescribed beneath the regulation.
Although penalty is waived off, not providing QR code would still be treated as non-compliance below GST. Although part 125 is a residual penal provision below which the penalty has been waived by the government, there may be additionally one other provision within the regulation which offers with penalty for invoices not issued in accordance with the provisions of the regulation, mentioned an analysis shared by EY.
Business watchers described the waiver as “much needed.” “As many of the industry players were not ready, this waiver would give the requisite time for the industry to be ready for compliance,” stated Abhishek Jain, Tax Partner, EY.
