In a brand new move to promote UPI-based digital payments, the NPCI (National Payments Corporation of India) and the GST Council of India have entered into an agreement to give GST credits to customers and shops that use UPI-based QR codes.
Some reports say that the UPI-based QR codes could also become mandatory for businesses or physical shops over a certain threshold. What’s more? The QR codes may also be introduced in GST invoices in the long run.
The UPI-based QR code payments push comes a year after the government’s first attempt to combine GST credits and digital payments. Last year, the GST council introduced a voluntary plan for states where any merchant/business using a Rupay Card or BHIM to make payments could avail a 20% cashback of upt0 Rs.100.
Should you opt for UPI-based QR Code payments?
QR codes have become a great way to collect payments, especially in the B2C segment. Today, if you walked over to a chai shop or need to take an autorickshaw, you don’t need to worry about cash or change. Just fire up any of your UPI supported apps like PhonePay, Bank Apps or even Whatsapp to make the payment.
QR codes bring a great deal of simplicity in the payments experience for both the seller and buyer. The latest move to tie up GST credits with QR Codes is a way to promote GST and UPI as a great business tool. Many merchants/businesses buy from other businesses and integrating input tax credits is a functional way to get more people to understand UPI and GST.
How UPI-based QR Codes Work
QR codes are just two-dimensional bar codes that you can use to scan and receive information. For QR payments, the VPA and bank information are integrated into the code. The payer scans the code to make the payment.
This gif below shows how a UPI-based QR code works on the BHIM app.
You May Also Like to Read: 5 Ways to Use QR Codes for Your Small Business
A few things to keep in mind when using QR codes:
- Brand your QR code using your logo.
- Test your QR code on multiple devices and with readers.
- Include a Call to Action and instructions for higher engagement.
Did you know you can create your own QR code on Instamojo? Convert all your payment links to QR codes in 3 simple steps.
Step 1: Head to your dashboard –> Payment links section
Step 2: Click on the 3 dots beside the ‘Send’ button
Step 3: Click on ‘Show QR Code’ to generate the QR code for your payment link.
You can print this code and stick it anywhere for physical payments. Also, you can digitally send this over Whatsapp or any other messaging app so people can pay you with UPI option on the payment link.
Start using UPI with Instamojo QR Codes today!