Coronavirus Impact: Electronic And QR Code-Based GST Invoicing Deferred

India deferred rollout of e-invoicing and quick response or QR Code as the coronavirus outbreak has disrupted businesses.

The QR code-based invoicing and electronic invoicing will now be rolled out from October against April earlier, according to a notification by the Central Board of Indirect Taxes and Customs.

This comes after the the government waived penalties and relaxed certain GST deadlines for small firms earlier this month. Similarly, the Income Tax Department extended timelines for filing of returns and the market regulator eased deadline for submitting financial statements by listed entities. The Covid-19 pandemic has stalled business as India is under a three-week lockdown to contain the virus.

The government had proposed the introduction of QR code-based invoicing in December. Invoices bearing a QR Code must be issued for sales made to unregistered persons. They will become mandatory for businesses having an aggregate turnover exceeding Rs 500 crore from October. It was earlier scheduled to roll out from April 1.

The mandatory electronic invoicing by registered persons was supposed to roll out from Jan. 1 this year, which was first deferred to April 1 and then October. The CBIC had limited input tax credit utilization to 10 percent on missing invoices as a step towards introducing invoice matching through e-invoicing.

Businesses having an aggregate turnover exceeding Rs 100 crore in a financial year must issue e-invoices for all business-to-business supplies made to a registered person.

Companies in the insurance, banking, goods and passenger transportation and multiplex business are exempt from e-invoicing and QR code subject to certain conditions.

Meanwhile, the government has also announced timelines for filing GST returns.

Timelines For GSTR-1

The Goods and Services Tax Act requires dealers to file a monthly or a quarterly GSTR-1 return to specify details of outward supply of goods or services. The department has specified in its notification:

• A registered business having a turnover less than Rs 1.5 crore can file GSTR-1 up to July 31 for the April to June quarter. The deadline for July to September quarter is Oct. 31.
• Those having turnover exceeding Rs 1.5 crore must file GSTR-1 on a monthly basis before the eleventh day of the next month for the April-September period.

Dates For GSTR-3B

The government also announced deadlines for filing summary GSTR-3B returns for small businesses. GSTR 3B, that provides a summary of inward and outward supplies, must be filed on a monthly basis before the 20th day of next month. State-wise deadlines are:

• Registered businesses having a turnover below Rs 5 crore in Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana, Andhra Pradesh can file return before the 22nd day of each next month.
• Registered businesses with a turnover below Rs 5 crore in Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, West Bengal, Jharkhand, Odisha and northeastern states can file return before the 24th day of each next month.

Outstanding taxes, interest or penalty must be paid before the prescribed deadlines for filing GSTR-3B, the CBIC said.

Aadhaar-Based Authentication

To curb malpractices involving fraudulent invoicing and use of input tax credit, the government has made Aadhaar-based authentication mandatory from April 1 for individuals seeking GST registration.