The growing use of QR codes and UPI payments is bringing a new challenge for small traders, and it has nothing to do with hiding income. In fact, the trouble is that they are struggling to explain routine gaps when digital receipts are matched with GST returns.
With most daily transactions now happening through QR scans and POS machines, every payment leaves a clear, time-stamped record in bank and app data. However, GST returns are filed monthly and often include adjustments like refunds, cancellations, discounts or delayed billing. This difference in recording timelines is leading to mismatches in cases.
“In many instances, these are not tax evasion but normal business situations,” said a city-based CA. “A payment may be received at month-end but billed later, or a transaction may be cancelled and refunded. While the digital record shows money received, the GST return reflects the adjusted position. Systems may still flag such gaps, leading to queries.” Traders say such variations are part of everyday operations. An electronics dealer in Navrangpura said advance payments are common for high-value items. “Billing often happens after delivery or in parts, so it doesn’t always match within the same month,” he said.
A food outlet owner in Prahladnagar highlighted cancellations. “Customers pay through QR, but if the order is cancelled, we return the money. The payment still shows, but the sale may not reflect in GST after adjustment,” he said.
Experts point to other common reasons for mismatch, including split payments for a single invoice, receipts in multiple linked accounts, and use of the same QR code for both personal and business transactions. With digital payments rising sharply, the data trail is now easier to compare, increasing the chances of such differences being picked up during scrutiny.
When mismatches are flagged, traders may receive notices seeking clarification. They must submit invoices, bank statements, refund records and explain timing gaps. While many cases are resolved without penalty, the process adds to compliance workload, especially for small businesses.
“Traders should not panic but stay careful. Regular reconciliation, proper refund records and keeping personal and business transactions separate can help avoid issues,” the CA said.
A senior GST official said GST returns are based on self-declared data, and if discrepancies arise, the system may seek clarification. “Genuine differences due to timing or refunds can be explained with proper documents.”
Source from: https://www.ahmedabadmirror.com/qr-payments-of-traders-under-gst-lens/81911778.html
