The lack of preparedness from the banks has forced the government to waive off proposed penalty for not implementing dynamic QR code on invoices issued by GST-registered taxpayers with over `500 crore annual turnover, sources in the revenue department said.
The provision was to penalise businesses not using QR codes on their invoices from December 1 but now it would come into force from April 1. However, the penalty waiver is contingent on businesses using QR codes from the start of the next fiscal year.
The move is aimed at promoting digital payment in business to customer (B2C) transactions through QR code and enabling GST payment on UPI — a digital retail payment option.
Sources said that while National Payments Corporation of India (NPCI) was ready to roll-out the QR code feature, the majority of the banks were unprepared despite multiple meetings and support from NPCI.