To promote UPI-based digital payments, the GST Council of India and PCI (National Payments Corporation of India) have officially agreed to offer tax incentives on GST if buyers and sellers make transactions through UPI QR Code. Also, there are reports that UPI based QR codes might become compulsory after a certain threshold for physical shops and other businesses. There are chances of introducing QR codes in GST invoices eventually. This plan of using UPI QR Code payments came into fruition after an attempt to merge GST credits and digital payments. Let’s discuss more insights on how UPI based QR code payment methods can help businesses and customers to get benefits in GST.
How Does it Work?
UPI QR Code payments will hugely benefit both buyers and sellers as they will get some portion of GST in return as cashback on the purchase of a product or service. In addition, by sharing the details of GSTIN and PAN, buyers and sellers can claim tax benefits according to the NPCI committee panel. This facility has been offered due to the fact that UPI has emerged as the top payment method.
The PAN data of the consumers will be stored at NPCI in an encrypted format. By paying a percentage of GST back to the buyers and sellers, NPCI is trying to boost digital payments and also improve the tax compliance of merchants.
Should We Opt for UPI QR Code for Making Payments?
The collection of payments through the UPI QR Codes is an excellent option, especially for the B2C segment. Nowadays, if you visit a tea shop or want to move around in an autorickshaw, there is no need to worry about cash or change. All you have to do is open your smartphone, open the UPI application, scan the UPI QR Code displayed by the seller, and make payments in seconds. Evidently, the UPI QR code brings a lot of ease for paying and receiving for both buyers and sellers. Moreover, there are no hassles of typing the mobile number or account number, which can induce errors if we are not vigilant. With UPI QR code, the payments are directed correctly towards the recipient’s bank account, and there are zero chances of getting it wrong. More Read Google Pixel Slate M3
Now with the offer of getting GST returns using the UPI QR Code has made the transactions even more fruitful. It promotes both UPI and GST compliance without any promotion or advertisement. Also, most sellers buy products from other sellers, and integrating UPI QR Code with GST credits will be a functional way to create awareness about UPI and GST. More Read Avple
How Does the UPI QR Code Works?
Generally, the UPI interface works with a VPA (Virtual Payment Handle) or a mobile number linked to a bank account number. The UPI QR Code payment mechanisms also work in a similar way.
The UPI QR code is a two-dimensional bar code that can be scanned to send and receive information. VPA (Virtual Payment Handle) and bank account details are integrated into the code for making UPI payments. The buyer will scan and make the payment. More Read Google Pixelbook 12in
Some of the things to keep in mind before using UPI QR Code
- Brand your UPI QR code through your logo
- Test the QR codes on multiple readers and devices
- Use Call to Action and instructions for better engagement
UPI QR Code payments are one of the best ways to make error-free transactions as there is no requirement of typing mobile numbers or account numbers. Also, UPI QR Code payments will bring returns in the form of GST tax benefits for both buyers and sellers. If this arrangement brings success, then in the future, the GST Council of India and PCI (National Payments Corporation of India) will add more benefits to UPI QR Code payments. Start using it now!