e-invoice threshold limit changes from 1st April 2022

The threshold limit for the issue of e-invoices has been reduced from ₹ 50 crores to ₹ 20 crores. Taxpayers who are having turnover above ₹ 20 crores have to issue e-invoices from 1st April 2022 and the recipient can take input tax credit only if the supplier has issued an e-invoice if required else they cannot avail input tax credit.

The taxpayers can verify from here for the eligibility for the issue of e-invoice.

The changes are notified wide Notification No 1/2022 – Central Tax dated 24th Feb 2022

10 Points About Dynamic QR Code in GST

Dynamic QR (Quick Reference) code is required to be shown on all Business to Customers Tax invoices issued by a registered taxable person whose turnover exceeds rupees five hundred crores during any of the last three financial years.

1. Is there any difference between the QR code issued for e-invoice and the dynamic QR code?

Yes, there is a difference. Dynamic QR code is issued by taxpayers having turnover above rupees five hundred crores during any of the last three years for business-to-customer transactions. QR code for e-invoice is issued for a taxpayer in relation to business-to-business transactions.

2. From when is dynamic QR Code is applicable?

Initially, a Dynamic QR code is required to be issued from 1^st of April 2020 wide notification number 72/2019 – Central Tax dated 13^th December 2019. It got postponed to 1^st of October 2020 wide notification number 14/2020 central tax, dated 21^st March 2020, due to the pandemic-like situation and business were not ready to implement the same technologically. The same got postponed to 1^st Dec 2020 wide notification number 71/2020 – central tax dated 1^st Dec 2020.

As part of providing relief to the taxpayers, notification number 89/2020 – central tax dated 29^th Dec 2020 issued waving of penalty under Section 125 of the CGST Act 2017 from 1^st December 2020 to 31^st march 2021 in case if the taxpayers’ issues tax invoices without dynamic, quick reference code for business-to-customer transactions.

From 1^st of April 2021, all taxpayers having aggregate turnover above rupees five hundred crores must issue dynamic, quick reference code for business to customer transactions.

3. Why did the Government introduce the Dynamic Quick Reference Code?

The Government has issued the dynamic, quick reference code to track the invoices and payments received against such invoices.

4. What should be shown in the dynamic QR code?

The dynamic QR code should show the following information

• Supplier GSTIN number
• Supplier UPI ID
• Payee’s Bank A/C number and IFSC
• Invoice number & invoice date,
• Total Invoice Value and
• GST amount along with breakup, i.e., CGST, SGST, IGST, CESS, etc.

 The dynamic QR code generated should have the facility for the customer to make digital payment.

5. Dynamic QR codes should be generated for which documents?

Dynamic QR code has to be generated for only tax invoices only as per notification number 72/2019 – Central Tax dated 13^th December 2019.

6. In the case of exports, the overseas customer does not have a GSTIN number. Dynamic QR code has to be issued for export transactions?

No, a dynamic QR code is not required to be issued for the export invoices as e-invoice is being already issued for such transactions.

7. In multiple instances, we could see the suppliers or the retailers displays the QR code for enabling the payment by the customers. In such cases, also the Dynamic QR code has to be printed on the tax invoice?

As long as the supplier maintains the payment track, issuing tax invoices with dynamic QR codes for Business to customer transactions is not required.

The payment reference should be linked to the tax invoice/transaction id, date, time and amount of payment, mode of payment like UPI, Credit card, Debit card, online banking etc.

8. There are instances where the customers pay the retailers in cash; even in such cases, dynamic QR code has to be provided?

No, if the customer opts to pay the invoice in cash, it is not required in such cases, but the retailer has to maintain the cross-reference of the same.

9. In some instances, we come across where the retailer collects the payment before the issue of tax invoice, like sharing the OTP in case of Paytm or making payment through a link. Even in such cases, the retailer has to issue a Dynamic QR code?

In such cases, the retailer is not required to issue the tax invoice with a dynamic QR code as the payment is collected before the invoice is issued and cross-reference for the payment and invoice already exist.

10. In case of cash on delivery by the e-commerce operators or supplies made through e-commerce operations, does the tax invoice issues should have the Dynamic QR code?

In the case of supplies through e-commerce operators by e-commerce operators for cash on delivery termed as COD basis, a Dynamic QR code must be issued and printed on the tax invoice.

The Government has provided multiple postponements for the Dynamic QR code rollout, and now it is mandatory to be issued from 1^st April 2021. If the taxpayers do not follow the same, then the department officers can issue penalty under Section 122 and Section 125 of the CGST Act 2017. Going by the trend of issue of e-invoice where the threshold has been reduced from rupees five hundred crores as on 1^st Oct 2020 to rupees 50 crores from 1^st April 2021, the threshold for the issue of dynamic QR code can also be reduced going forward. Based on past experiences, the taxpayers should gear up for the same even though it is not applicable as on date.

Important changes applicable from 1st of April 2021 in GST

From 1^st April 2021, some changes are being made in Goods and Service Tax which taxpayers have to follow and implement the same.

e-invoice

e-invoice is required to be issued by all registered taxpayers having turnover above rupees fifty crores for all B2B transactions.

• Display of HSN codes on Tax Invoice

Taxpayers having turnover above rupees five crores are required to show six HSN code digits on all tax invoices.

Taxpayers who are having turnover below rupees five crores are required to show four digits of the HSN code in case of B2B (Business to Business) and B2C (Business to Customers) optional to show HSN codes.

• Changes in HSN Summary while filing GSTR – 1

While filing GSTR – 1 on a monthly or quarterly basis, the taxpayers have to report the HSN codes as discussed in Point Number 2 in the HSN Summary that is in Table 12 of GSTR – 1.

Cost of Non-Compliance

The cost of non-compliance is always higher than than the cost of compliance. In case if the taxpayers are not adhering to the above changes, then the department can levy a penalty under Section 125 of CGST Act 2017, residuary penal provision of rupees twenty-five thousand for Central Goods and Service Tax and another twenty-five thousand rupees for the State Goods and Service Tax thereby making the penalty amount to rupees fifty thousand.

Taxpayers are requested to make necessary changes in their business process and accounting or billing software or return filing solutions accordingly else the penalties will be levied.

e-invoice : 59 days to go in India

e-invoice is required to be issued for B2B, SEZ Supplies with payment of tax, SEZ Supplies without payment of tax, Exports with payment of tax, Exports with out payment of tax and Deemed Exports.

GST Tip – 248

As per the GST Returns Final Formats, in Table 9 of the GSTR – 1, all the debit notes, credit notes, refund vouchers issued for the supplies made for the earlier period has to be shown here. The documents for the B2B and B2C will be shown here.

GST Tip – 247

As per the Final GST Returns Formats, in table 8 of GSTR – 1, supplies for the month has to be classified as Nil Rated, GST Exempted and Non-GST Supplies have to be shown at a summary level for  B2B and B2C for interstate and intrastate.

GST Tip – 89

In GSTR -1, transaction level detail with the invoice number has to be shown in case of all B2B transactions, B2C transactions with invoice value above Rs 2.5 Lacs for supplies to customers outside the state and in case of B2C transactions for supplies within the state or outside the state (less than Rs 2.5 Lacs) summary by HSN / SAC has to be shown along with the tax rates and amounts.