NON-COMPLIANCE WITH THE QR CODE RESULTS IN A WAIVER OF LATE FINES
The Central Government has published a notification dated June 30, 2021, which amends the preceding notification dated March 21, 2020. The notification has exempted the levy of late fees of up to Rs 50,000 under Section 125 of the CGST Act 2017 for non-compliance of QR code on all B2C invoices issued by businesses with an aggregated turnover of more than Rs 500 crore in any of the financial years beginning in 2017-18.
The notification stipulates that such a corporate company must use QR codes on B2C invoices. According to this, such businesses must start using QR codes on their B2C invoices from October 1st, 2021.
THE MCA ELIMINATES A FOREIGN COMPANY’S ELECTRONIC PRESENCE FROM THE DEFINITION OF A FOREIGN COMPANY
The Ministry of Corporate Affairs (MCA) has exempted a foreign firm’s electronic presence from the definition of a foreign company under section 2(42) of the Act, which includes electronic-based securities offerings, subscriptions, and IFSC listings. The MCA has published the Companies Third Amendment Rules, 2021, which amend the Companies Rules, 2014.
The explanation “Explanation” shall be placed in clause (h) of sub-rule (1) of rule 2 of the Companies Rules, 2014, which states that- Electronic-based offering, subscription, or listing of securities in the International Financial Services Centres established under section 18 of the Special Economic Zones Act, 2005 (28 of 2005) shall not be construed as ‘electronic mode’ for the purposes of clause (42) of section 2 of the Act.