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GST Update: Clarification in respect of applicability of Dynamic QR Code on B2C invoices
GST Update: Clarification in respect of applicability of Dynamic QR Code on B2C invoices

June 23, 2021

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Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 156/12/2021-GST providing clarifications in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020 requiring dynamic QR Code on B2C invoice issued by taxpayers having aggregate turnover more than INR 500 crore.

Following are the clarifications:

Applicability and coverage

  • Dynamic QR Code is required for invoices issued to holders of Unique Identity Number (UIN) as they do not classify as ‘registered persons’ under GST
  • Dynamic QR Code is not applicable for services supplied to overseas recipient and payment in foreign currency, even where place of supply is in India. This is in line with our recommendation made to GST officials

Contents of Dynamic QR Code

Given that UPI ID is linked to a specific bank account of the payee/ person collecting money, separate details of bank account and IFSC may not be provided in the Dynamic QR Code.

Payment collected by third party and not supplier

Where the payment is collected by some person, authorized by the supplier on his/ her behalf, the UPI ID of such person may be provided in the Dynamic QR Code, instead of UPI ID of the supplier.

Invoice number is not available at the time of digital display of QR code in case of over the counter sales and the invoice number and invoices are generated after receipt of payment

The unique order ID/ unique sales reference number, which is uniquely linked to the invoice issued for the said transaction, may be provided in the DQRC for digital display, as long as:

  • The details of such unique order ID/ sales reference number linkage with the invoice are available on the processing system of the merchant/ supplier; and
  • The cross reference of such payment along with unique order ID/ sales reference number are also provided on the invoice.

Part payment received by the supplier either in advance or by adjustment (e.g. using a voucher, discount coupon etc)

  • Dynamic QR Code will provide only the remaining amount payable by the customer/ recipient against “invoice value”.  This is in line with our recommendation made to GST officials.
  • The details of total invoice value, along with details/ cross reference of the part-payment/ advance/ adjustment done, and the remaining amount to be paid, should be provided on the invoice.

Copy of the Circular is attached for your reference.


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Download Attachment

156-12-2021 GST Circular.pdf

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