Circular No. 156/12/2021-GST [C10-5C5]

Notification No. 14/2020-Central Tax, dated 21st 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. 06/2021-Central Tax, dated 30th March 2021, penalty has been waived for non-compliance of the provisions of notification No.14/2020 – Central Tax for the period from 01st December, 2020 to 30th June, 2021, subject to the condition that the said person complies with the provisions of the said notification from 1st July, 2021. Further, various issues on Dynamic QR Code have been clarified vide Circular No. 146/2/2021-GST, dated 23.02.2021.

2. Various references have been received from trade and industry seeking clarification on applicability of Dynamic Quick Response (QR) Code on B2C (Registered person to Customer) invoices and compliance of notification 14/2020-Central Tax, dated 21st March, 2020 as amended. The issues have been examined and in order to ensure uniformity in the implementation of the provisions of the law across the field formations, the Board, in exercise of its powers conferred under section 168(1) of the CGST Act, 2017, hereby clarifies the issues

Circular no. 156/12/2021-GST

in the table below:

1. Whether Dynamic QR Code is to be Any person, who has obtained a Unique provided on an invoice, issued to a Identity Number (UIN) as per the person, who has obtained a Unique provisions of Sub-Section 9 of Section 25 Identity Number as per the provisions of CGST Act 2017, is not a “registered of Sub-Section 9 of Section 25 of person” as per the definition of registered CGST Act 2017? person provided in section 2(94) of the CGST Act 2017. Therefore, any invoice, issued to such person having a UIN, shall be considered as invoice issued for a B2C supply and shall be required to comply with the requirement of Dynamic QR Code.

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

3. In cases where the payment is collected Yes. In such cases where the payment is by some person other than the supplier collected by some person, authorized by (ECO or any other person authorized the supplier on his/ her behalf, the UPI ID by the supplier on his/ her behalf), of such person may be provided in the whether in such cases, in place of UPI Dynamic QR Code, instead of UPI ID of ID of the supplier, the UPI ID of such the supplier. person, who is authorized to collect the payment on behalf of the supplier, may be provided?

4. In cases, where receiver of services is No. Wherever an invoice is issued to a located outside India, and payment is recipient located outside India, for supply being received by the supplier of of services, for which the place of supply services in foreign exchange, through is in India, as per the provisions of IGST RBI approved modes of payment, but Act 2017, and the payment is received by

Circular no. 156/12/2021-GST

as per provisions of the IGST Act the supplier in foreign currency, through 2017, the place of supply of such RBI approved mediums, such invoice services is in India, then such supply of may be issued without having a Dynamic services is not considered as export of QR Code, as such dynamic QR code services as per the IGST Act 2017; cannot be used by the recipient located whether in such cases, the Dynamic outside India for making payment to the QR Code is required on the invoice supplier. issued, for such supply of services, to such recipient located outside India?

5. In some instances of retail sales over In such cases, where the invoice number the counter, the payment from the is not available at the time of digital customer in received on the payment display of dynamic QR code in case of counter by displaying dynamic QR over the counter sales and the invoice code on digital display, whereas the number and invoices are generated after invoice, along with invoice number, is receipt of payment, the unique order ID/ generated on the processing system unique sales reference number, which is being used by supplier/ merchant after uniquely linked to the invoice issued for receiving the payment. In such cases, it the said transaction, may be provided in may not be possible for the merchant/ the Dynamic QR Code for digital display, supplier to provide details of invoice as long as the details of such unique order number in the dynamic QR code ID/ sales reference number linkage with displayed to the customer on payment the invoice are available on the processing counter. However, each transaction i.e. system of the merchant/ supplier and the receipt of payment from a customer is cross reference of such payment along having a unique Order ID/ sales with unique order ID/ sales reference reference number, which is linked with number are also provided on the invoice. the invoice for the said transaction. Whether in such cases, the order ID/ reference number of such transaction can be provided in the dynamic QR code displayed digitally, instead of invoice number.

6. When part-payment has already been The purpose of dynamic QR Code is to received by the merchant/ supplier, enable the recipient/ customer to scan and

Circular no. 156/12/2021-GST

either in advance or by adjustment (e.g. pay the amount to be paid to the merchant/ using a voucher, discount coupon etc), supplier in respect of the said supply. before the dynamic QR Code is When the part-payment for any supply generated, what amount should be has already been received from the provided in the Dynamic QR Code for customer/ recipient, in form of either “invoice value”? advance or adjustment through voucher/ discount coupon etc., then the dynamic QR code may provide only the remaining amount payable by the customer/ recipient against “invoice value”. 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.

3. Circular No. 146/2/2021-GST, dated 23.02.2021 stands modified to this extent.

4. It is requested that suitable trade notices may be issued to publicize the contents of this circular.

5. Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board. Hindi version would follow.