Extension of Dynamic QR Code in case of B2C Tax invoices

Taxpayers who are required to issue Dynamic QR Code in case B2C supplies where their turnover is above ₹ 500 crores during any of the three financial years, relaxation is being provided and in case if they do not issue tax invoices with dynamic QR code there will be no levy of penalty under Section 125 of CGST Act 2017 till 30th Sep 2021.

This extension is being provided due to the on going pandemic. This is notified wide Notification No 28/2021 – Central Tax dated 30th June 2021.

Extract of the Notification

G.S.R. 450(E).—In exercise of the powers conferred by section 128 of the Central Goods and
Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the
Government, on the recommendations of the Council, and in supersession of notification of the
Government of India in the Ministry of Finance (Department of Revenue), No. 89/2020 – Central Tax,
dated the 29th November, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide number G.S.R. 745(E), dated the 29th November, 2020, except as respects things done or
omitted to be done before such supersession, hereby waives the amount of penalty payable by any
registered person under section 125 of the said Act for non-compliance of the provisions of notification
No.14/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i), vide number G.S.R. 197(E), dated the 21st March, 2020, between the
period from the 1st day of December, 2020 to the 30th day of September, 2021.

Important changes applicable from 1st of April 2021 in GST

From 1st 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.