{"id":9589,"date":"2019-05-15T15:47:02","date_gmt":"2019-05-15T10:17:02","guid":{"rendered":"https:\/\/www.instamojo.com\/blog\/?p=9589"},"modified":"2021-06-16T16:01:03","modified_gmt":"2021-06-16T10:31:03","slug":"upi-qr-codes-for-gst-benefit-small-business","status":"publish","type":"post","link":"https:\/\/www.instamojo.com\/blog\/upi-qr-codes-for-gst-benefit-small-business\/","title":{"rendered":"Use UPI-based QR Codes To Get GST Benefit"},"content":{"rendered":"

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.<\/p>\n

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? In the long run, QR codes might also be introduced in GST invoices.<\/p>\n

The UPI-based QR code payments push comes a year after the government’s first attempt to combine GST credits and digital payments. Earlier, the GST council introduced a voluntary plan for states where any merchant\/business using a Rupay Card<\/span><\/a> or BHIM<\/span><\/a> to make payments could avail a 20% cashback of upt0 Rs.100.<\/span><\/a><\/p>\n

Should you opt for UPI-based QR Code payments?<\/h3>\n

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<\/a><\/span> like PhonePay, Bank Apps, or even Whatsapp<\/a><\/span> to make the payment.<\/p>\n

Evidently, they bring a great deal of simplicity to the payment experience for both the seller and buyer. The latest move to tie up GST credits with QR Codes is indeed a way to promote GST and UPI as a great business tool<\/a>.<\/span>\u00a0For the most part, 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.<\/p>\n

How UPI-based QR Codes Work<\/h3>\n

Usually, UPI (Unified Payments Interface)<\/span><\/a> works with a VPA (Virtual Payment Handle)<\/span><\/a> or a phone number linked to a bank account. The QR Code for payments\u00a0is integrated into the\u00a0same mechanism.<\/p>\n

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 simply scans the code to make the payment.<\/p>\n

For instance, this gif below shows how a UPI-based QR code works on the BHIM app<\/a><\/span>.<\/p>\n

\"BHIM<\/p>\n

You May Also Like to Read:<\/strong> 5 Ways to Use QR Codes for Your Small Business<\/strong><\/span><\/a><\/p>\n

A few things to keep in mind when using QR codes:<\/h3>\n