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Relief from penalty for non-compliance of QR code, exemption on bills till 31 March 2021

The government has exempted companies from imposing penalties for non-compliance with QR Code provisions in case of bills related to transactions between customers (B to C). This exemption has been given for bills generated till 31 March 2021.

However, it will be mandatory for companies to comply with the QR Code provisions from April 1, 2021 to be exempt from fines. The system of publishing QR codes on B to C bills has been implemented from December 1. The ‘Quick Response Code’ (QR Code) helps users to verify the details in digitally signed e-bills. Under the Goods and Services Tax (GST), companies whose turnover is more than Rs 500 crore have to generate e-bills from October 1 for transactions between companies (BB).

However, it has not yet been made mandatory in the B to C case between companies to customers. The Central Board of Indirect Taxes and Customs (CBIC) in a notification issued on November 29 stated that companies have been exempted from fines for not complying with QR Code provisions for transactions between customers. This exemption is from December 1, 2020 to March 31, 2021.

This exemption is subject to the condition that the said person will comply with this provision from April 1, 2021. In this regard, EY tax partner Abhishek Jain said, “The central government has provided necessary relief by waiving the penalty for non-compliance of QR code in transactions between companies and customers till March 2021”. “Many companies were not ready yet,” he said. This exemption has given them time to comply with the regulations.


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