INCOME TAX Ministry of Finance discloses the new GST UPI Payment Guidance

Ministry of Finance discloses the new GST UPI Payment Guidance

Ministry of Finance discloses the new GST UPI Payment Guidance

Ministry of Finance discloses the new GST UPI Payment Guidance

The Indian Govt issued the exemption in the fine to those pursuing companies to consume Business to Business transactions for a term of four months from 01 Dec 2020 to 31 Dec 2021 in order to issue invoices except dynamic QR code through registered persons with a turnover of more than Rs 500 cr, according to the Ministry of Finance.

The Ministry of Finance mentions that the government has been advising banks, merchants, and the National Payments Corporation of India to implement GST for a year now to provide a unified payment interface UPI. Several meetings were held through DoR and NPCI, high-profile banks, and various stakeholders to improve the project. NCPI made the compulsory binding solutions and mutual technical qualifications within the banks.

In addition, the objective of the NCPI is to help the GST to get online from the 1st week of March 2020 and is ready for certification from 6 February 2020 on UPI.

India required to develop a cashless environment, The Ministry of Finance has proposed the issuance of an invoice with a dynamic QR code by an enrolled individual whose turnover is more than Rs 500 cr empty its Notification 14/2020 of 21 March 2020 to enable the GST on UPI w.e.f 1/12/2020 to be extended to invoices made to unregistered customers.

The penalty plan is also proposed to submit invoices with the exception of the dynamic QR code w.e.f 01 Dec 2020. While the majority of banks have postponed preparation for the incorporation of GST into UPI, several conferences, persuasions, and essential assistance from NPCI have already taken place.

As per the received information from the North block, a meeting was held to enable the GST on UPI, it was agreed to offer a 1 Time exemption from the penalty for a period of four months until 30 Dec 2021, to the result that members would settle the required protocol during that period to live with the QR code on invoices by 1/04/2021 enabling GST on UPI.

Thus, The Ministry of Finance, as far as the sources are concerned, has agreed to extend the special discount provided for in notification No. 89/2020-Central Tax, dated 29 November 2020, exempting invoices except the dynamic QR code from Dec 01, 2020, to Mar 03, 2021, from the provision that the assessee begins to comply with the provisions of the QR code from 1 April 2021.

Finance Act, 2021: The Finance Bill, 2021 has received the assent of the President, Shri Ram Nath Kovind, on 28th March 2021 and become ‘Finance Act, 2021’. However, the changes relating to GST shall come into force from the date to be notified later on.

Dynamic QR Code: The CBIC vide Notification No. 06/2021–Central Tax dated 30-03-2021, waived the amount of penalty payable by a registered person u/s 125 of CGST Act for non-compliance of provisions of dynamic QR code in case of B2C invoices till June 30, 2021, subject to the condition that said person complies with provisions of said notification w.e.f. July 1, 2021.

CBIC initially deferred to October 01, 2020, the requirement to enforce the QR code, followed by the further postponement of the requirement in the case of B2C invoices for the QR code, until December 01, 2020.

Govt made the penalty waiver Extension for non-compliance of QR Code till 30.06.2021

GST Registered taxpayer having a Total turnover of exceeded INR 500 CR. in an FY issuing the invoice to unregistered person (i.e. B2C invoice), shall provide invoice dynamic QR code. (CBIC vide Notification No. 14/2020-CT of 21.03.2020)

However, CBIC has been extended the deadline from 01.12.2020 to 30.06.2021 for the waiver of penalty for non-compliance of QR Code provisions, Provided that the QR Code provisions have complied with w.e.f. 01.07.2021. ( the CBIC vide Notification No. 06/2021 – CT dated 30.03.2021) 

CBIC subsequently waived, for failure to comply with provisions of dynamic QR code between the period until 31 March 2021, the amount of penalty paid by a registered person u/s 125 to the CGST law. Similar relief until 1 July 2021 has been provided now again.

Point to be noted that, the penalty has been waived for not providing a QR code However would be treated as non-compliance by GSTN."

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