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Indirect Tax Alert - GST: Waiver of Penalty- Generation of QR Code for B2C transactions

01 December 2020

The Central Board of Indirect Taxes and Customs (CBIC) has issued Notification No. 89/2020 – Central Tax, dated 29 November 2020 to waive penalty payable for non-compliance of the provisions of Notification No. 14/2020 – Central Tax, dated 21 March 2020. The summary of the same is as follows:

  • CBIC, vide Notification No. 14/2020 – Central Tax, notified certain registered persons, whose aggregate turnover is more than INR 5 billion in a financial year as a class of persons who are required to have a Dynamic Quick Response (QR) code in B2C invoices.
  • The said requirement was made applicable with effect from 01 December 2020.
  • The current notification is issued to waive penalty under Section 125 of CGST Act, 2017 for non-generation of Dynamic QR Code from 01 December 2020 till 31 March 2021.
  • The above waiver is subject to condition that the person complies with printing of Dynamic QR Code on B2C invoices with effect from 01 April 2021.

BDO Comments

This relief is a saviour for all those taxpayers who are in the process of making applicable changes in the ERP and this would aid to meet the expected compliance requirements within the specified relaxed timelines.