Budget 2020: GST Invoices QR Code Helpful to Curb Tax Evasion & ITC Claims

As per the current analysis, 27 thousand returns and 28,000 crore refund claims were found guilty of being fraudulent. These shocking figures have been revealed by the government saying that several unscrupulous assessees claimed ITC on false invoices At a time when reports of Central Government eyeing RBI Reserves to breathe fresh air to credit-starved micro, small and medium enterprises (MSMEs) Read Also. With its Union Budget 2020, the government has come up with an ambitious step to curb this highly stretched fraud. How much business is been done in the market? How much is the purchase? The overall supply of the shopkeepers. This data will be taken out keeping consumer invoices as a prime reference.

To be Noted: Consumers can and must avail of the QR code imprinted bills to get incentives on cash payments.

Every consumer invoice will have a QR Code obtained at the time of printing the receipt. Here the consumer invoice means the invoice of B2C transaction (supply for consumption). The data thus collected with the help of the QR code will be analyzed by the data wing of GST. Customers must avail of the QR code imprinted bills, that will fetch them incentives like they will get a discount in cash payments.

The customer receives the QR code bill as soon as he makes the complete payment of his purchase. The data wing of GST will analyze the claims for ITC with the help of the QR Code imprinted on purchase bills. It is in headlines these days that how the companies have claimed false ITC on the basis of fake invoices. Around 6600 such cases are recently surrendered in front of the administration.

Read Also: All About GST E-Invoice Generation System on Portal with Applicability Get to know about the new E-invoice generation system on government GST portal with applicability. The system mandates to generate e-invoice for every sale by a registered business. Read Also

Talking about the numbers, the highest number of cases surrendered were from Kolkata then Delhi, finally Haryana and Rajasthan. Members of the conspiracy were fake bill makers, dealers distributors, fake sales companies and fake purchase companies. To prevent this, the government has decided to take the step of billing after the Adhaar Verification.

The current budget said that customer bills will be made the basis. And that more than 800 crore invoices were issued this year. The number is expected to rise in the near future. The data derived from the public will help the government prevent tax evasion and fraud. The invoices will have a QR code and the customers will pay for their purchases by QR code. They will earn an incentive by doing so.