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This circular clarifies the application of Dynamic Quick Response Code rules on business-to-consumer invoices under Notification No. 14/2020-Central Tax. The rules apply to registered persons with an annual aggregate turnover exceeding 500 crore rupees in any financial year from 2017-18 onwards. Specific entities such as insurers, banking companies, financial institutions, goods transport agencies, passenger transport services, multiplex cinemas, and OIDAR service providers are exempt. Export supplies are also exempt because they require e-invoices treated as business-to-business supplies. Suppliers must include specific details like the GSTIN, UPI ID, bank account, IFSC, invoice number, date, total value, and tax breakdown in the Dynamic QR Code. Invoices with cross references for pre-paid transactions or payments made without scanning the code comply with the requirements if specific payment details appear on the invoice.
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Circular no. 146/02/2021-GST
F. No. CBEC-20/16/38/2020-GST Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs GST Policy Wing
New Delhi, dated the $23^{\text{rd}}$ February, 2021
To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners / Commissioners of Central Tax (All)
The Principal Directors General / Directors General (All)
Madam/Sir,
Subject: Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated $21^{\text{st}}$ March, 2020 - Reg.
Notification No. 14/2020-Central Tax, dated $21^{\text{st}}$ March 2020 had been issued which requires Dynamic QR Code on B2C invoice issued by taxpayers having aggregate turnover more than 500 crore rupees, w.e.f. 01.12.2020. Further, vide Notification No. 89/2020- Central Tax, dated $29^{\text{th}}$ November 2020, penalty has been waived for non-compliance of the provisions of Notification No.14/2020 – Central Tax for the period from $01^{\text{st}}$ December, 2020 to $31^{\text{st}}$ March, 2021, subject to the condition that the said person complies with the provisions of the said Notification from $01^{\text{st}}$ April, 2021.
| Sl. No. | Issues | Clarification |
|---|---|---|
| 1. | To which invoice is Notification No 14/2020- Central Tax dated $21^{\text{st}}$ March, 2020 applicable? Would this requirement be applicable on invoices issued for supplies made for Exports? | This notification is applicable to a tax invoice issued to
an unregistered person by a registered person (B2C
invoice) whose annual aggregate turnover exceeds 500
Cr rupees in any of the financial years from 2017-18
onwards. However, the said notification is not
applicable to an invoice issued in following cases:
As regards the supplies made for exports, though such supplies are made by a registered person to an unregistered person, however, as e-invoices are required to be issued in respect of supplies for exports, in terms of Notification no. 13/2020-Central Tax, dated $21^{\text{st}}$ March, 2020 treating them as Business to Business (B2B) supplies, Notification no. 14/2020- Central Tax, dated $21^{\text{st}}$ March, 2020 will not be applicable to them. |
| 2. | What parameters/ details sre required to be captured in the Quick Response (QR) Code? | Dynamic QR Code, in terms of Notification No.
14/2020-Central Tax, dated $21^{\text{st}}$ March, 2020 is
required, inter-alia, to contain the following
information: -
Further, Dynamic QR Code should be such that it can be scanned to make a digital payment. |
| 3. | If a supplier provides/ displays Dynamic QR Code, but the customer opts to make payment without using Dynamic QR Code, then will the cross reference of such payment, made without use of Dynamic QR Code, on the invoice, be considered as compliance of Dynamic QR Code on the invoice? | If the supplier has issued invoice having Dynamic QR
Code for payment, the said invoice shall be deemed to
have complied with Dynamic QR Code requirements.
In cases where the supplier, has digitally displayed the
Dynamic QR Code and the customer pays for the
invoice: -
The said invoice shall be deemed to have complied with the requirement of having Dynamic QR Code. |
| 4. | 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, how can the requirement of Dynamic QR Code as per this notification be complied with? | 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.
However, if payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice. |
| 5. | Is generation/ printing of Dynamic QR Code on B2C invoices mandatory for pre- paid invoices i.e. where payment has been made before issuance of the invoice? | If cross reference of the payment received either
through electronic mode or through cash or
combination thereof is made on the invoice, then the
invoice would be deemed to have complied with the
requirement 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. |
| 6. | Once the E-commerce operator (ECO) or the online application has complied with the Dynamic QR Code requirements, will the suppliers using such e-commerce portal or application for supplies still be required to comply with the requirement of Dynamic QR Code? | The provisions of the notification shall apply to each supplier/registered person separately, if such person is liable to issue invoices with Dynamic QR Code for B2C supplies as per the said notification. 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. |
