The surge in QR code usage and UPI transactions is hitting small traders hard, but not for the reasons many might think. These businesses are now grappling with complications arising from digital receipts that don’t align with their GST returns.
As more daily sales happen through QR scans and Point of Sale (POS) machines, each transaction leaves a detailed, timestamped record. Yet, the way GST returns are filed adds complexity. Traders submit these returns monthly, which often include various adjustments like refunds or cancellations that can skew the data.
“In many cases, these discrepancies aren’t due to tax evasion but rather normal business practices,” explained a chartered accountant based in Ahmedabad. For instance, payments might be received at month-end while billing occurs later. So when digital records show money coming in but the GST return reflects different figures after adjustments, it raises flags.
A local electronics dealer pointed out that advance payments for high-ticket items are routine. “We often bill after delivery or do it in parts; this doesn’t always match up within the same month,” he noted.
Similarly, a food outlet owner mentioned cancellations as another source of confusion. Customers pay via QR codes for orders that may later be cancelled and refunded. The payment shows up digitally, but those sales don’t reflect accurately in GST reports.
Experts also cite split payments and use of identical QR codes for personal and business transactions as common culprits for mismatches. With digital transactions becoming more prevalent, these differences are increasingly noticeable during audits.
When discrepancies arise, traders face inquiries where they need to provide invoices and bank statements to clarify timing issues. Though many resolve their queries without penalties, it amplifies compliance burdens for small businesses.
A senior official from the GST department emphasized that the system relies on self-reported data and genuine discrepancies can usually be resolved with proper documentation.