The government has conceded the prerequisite of printing dynamic Quick Response code on business to consumer invoices by two months till Dec 1. A QR Code assists users in confirming the subtleties in the digitally signed e-invoice. It has likewise given temporary relief to those organizations having turnover above Rs 500 crore which have not had the option to completely implement e-invoicing frameworks in a ready state.
The Central Board of Indirect Taxes and Customs said in a media articulation that invoices provided by such organizations during the month of October will be viewed as valid even if they don’t follow e-invoicing specifications, and any punishment will stand deferred subject to specific conditions. To avail of this advantage, organizations must generate an invoice reference number from the committed dedicated e-invoicing portal within 30 days of the date mentioned on the invoice.
For example, if a registered business issues an invoice on Oct 3. Without getting an IRN, it won’t be punished in the event that if it reports the subtleties of such an invoice and gets an IRN before Nov. 2. “No such relaxation would be available for the invoices issued after Nov.1, the government said. This comes after the government made compulsory for the companies having turnover surpassing Rs 500 crore to generate e-invoice from October 1.
Under e-invoicing, the taxpayers need to generate the invoice on their internal frameworks and afterward report it online to the ‘Invoice Registration Portal. The IRP validates the information mentioned in the receipt and returns the digitally signed e-invoice with a special ‘Invoice Reference Number’ along with a QR code to the taxpayer. Nonetheless, for B2C transactions, e-invoice isn’t yet required.
A different provision for dynamic QR codes for B2C invoices, not requiring an IRN, has additionally been deferred by two months. The move has evoked a blended reaction from the tax community. Abhishek Jain, a partner at consultancy EY India, said with there being a considerable amount of ambiguity on this compliance for B2C invoices, the industry was awaiting an unequivocal explanation along with a deferment. “This deferment would be quite a welcome one and now businesses would be looking for both a detailed clarification on this compliance for B2C invoices and a relaxation on B2B e-invoicing compliances; which are effective from Oct. 1,” Jain added.
AMRG and Associates’ senior partner Rajat Mohan mentioned that the deferral has come hours before its nationwide implementation. These kind of last-minute extensions are not helpful to a compliant taxpayer, who would have by now changed over to new systems with great difficulty,” Mohan added.
For more information, visit the website of All India ITR.