Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No-146/02/2021-GST dated 23rd February, 2021 in order to provide clarification on applicability of Dynamic Quick Response (QR) Code on B2C (Registered person to Customer) invoices.
Key points of the Circular are:
1. It has been clarified that the requirement to have dynamic quick response code (QR Code) in the tax invoice issued to an unregistered person by a registered person (B2C invoice) whose annual aggregate turnover exceeds INR 500 Cr in any of the financial years from 2017-18 onwards shall not be applicable in following cases:
I. Where the supplier of taxable service is :
a) An insurer or a banking company or a financial institution, including a non-banking financial company;
b) A goods transport agency supplying services in relation to transportation of goods by road in a goods carriage;
c) Supplying passenger transportation service;
d) Supplying services by way of admission to exhibition of cinematograph in films in multiplex screens
II. OIDAR supplies made by any registered person to unregistered person.
2. It has also been clarified that the requirement to have Dynamic QR code on tax invoice will not be applicable in case of supplies for exports. However for such supplies made by a registered person to an unregistered person, e-invoices are required to be issued in respect of such supplies for exports treating them as business to business supplies.
3. It has been provided that the following parameters/details are required to be captured in Quick Response (QR) Code –
i. Supplier GSTIN number
ii. Supplier UPI ID
iii. Payee’s Bank A/C number and IFSC
iv. Invoice number & invoice date,
v. Total Invoice Value and
vi. GST amount along with breakup i.e. CGST, SGST, IGST, CESS, etc
Further it has been clarified that Dynamic QR Code should be such that it can be scanned to make a digital payment.
4. It has been further clarified that in cases where the supplier, has digitally displayed the Dynamic QR Code and the customer pays for the invoice by any of the following methods then the said invoice shall be deemed to have complied with the requirement of having Dynamic QR Code:
i. using any mode like UPI, credit/ debit card or online banking or cash or combination of various modes of payment, with or without using Dynamic QR Code, and the supplier provides a cross reference of the payment (transaction id along with date, time and amount of payment, mode of payment like UPI, Credit card, Debit card, online banking etc.) on the invoice;
ii. In cash, without using Dynamic QR Code and the supplier provides a cross reference of the amount paid in cash , along with date of such payment on the invoice.
5. It has been clarified that if the supplier makes available to customers an electronic mode of payment like UPI Collect, UPI Intent or similar other modes of payment, through mobile applications or computer based applications, where though Dynamic QR Code is not displayed, but the details of merchant as well as transaction are displayed/ captured otherwise then in such cases, if the cross reference of the payment made using such electronic modes of payment is made on the invoice, the invoice shall be deemed to comply with the requirement of Dynamic QR Code.
6. It has been clarified that in cases where payment has been made before issuance of the invoice then the invoice would be deemed to have complied with the requirement of Dynamic QR Code if cross reference of the payment received either through electronic mode or through cash or combination thereof is made on the invoice. In cases other than pre-paid supply i.e. where payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.
7. It has been clarified that in case, the supplier is making supply through the E-commerce portal or application, and the said supplier gives cross references of the payment received in respect of the said supply on the invoice, then such invoices would be deemed to have complied with the requirements of Dynamic QR Code. In cases other than pre-paid supply i.e. where payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.
For further details please refer the attached document.
Source: Central Board of Indirect Taxes & Customs
