Circular No. 146/02/2021-GST [C10-52S]

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. 89/2020- Central Tax, dated 29th November 2020, penalty has been waived for non-compliance of the provisions of Notification No.14/2020 – Central Tax for the period from 01 st December, 2020 to 31st March, 2021, subject to the condition that the said person complies with the provisions of the said Notification from 01st April, 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 No. 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 in the table below:

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Circular no. 146/02/2021-GST

Sl. Issues Clarification No.

1. This notification is applicable to a tax invoice issued to To which invoice is an unregistered person by a registered person (B2C Notification No 14/2020- invoice) whose annual aggregate turnover exceeds 500 Central Tax dated 21st Cr rupees in any of the financial years from 2017-18 March, 2020 applicable? onwards. However, the said notification is not Would this requirement be applicable to an invoice issued in following cases: applicable on invoices issued for supplies made i. Where the supplier of taxable service for Exports? 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, who has obtained registration under section 14 of the IGST Act 2017, to an unregistered person.

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Circular no. 146/02/2021-GST

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 21st March, 2020 treating them as Business to Business (B2B) supplies, Notification no. 14/2020- Central Tax, dated 21st March, 2020 will not be applicable to them.

2. Dynamic QR Code, in terms of Notification No. What parameters/ details 14/2020-Central Tax, dated 21st March, 2020 is are required to be captured required, inter-alia, to contain the following in the Quick Response information: - (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, Dynamic QR Code should be such that it can be scanned to make a digital payment.

3. If the supplier has issued invoice having Dynamic QR If a supplier provides/ Code for payment, the said invoice shall be deemed to displays Dynamic QR have complied with Dynamic QR Code requirements. Code, but the customer opts to make payment In cases where the supplier, has digitally displayed the without using Dynamic QR Dynamic QR Code and the customer pays for the Code, then will the cross invoice: - reference of such payment, i. Using any mode like UPI, credit/ debit card made without use of or online banking or cash or combination of Dynamic QR Code, on the various modes of payment, with or without

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Circular no. 146/02/2021-GST

invoice, be considered as using Dynamic QR Code, and the supplier compliance of Dynamic QR provides a cross reference of the payment Code on the invoice? (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 ; or 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; The said invoice shall be deemed to have complied with the requirement of having Dynamic QR Code.

4. In such cases, if the cross reference of the payment If the supplier makes made using such electronic modes of payment is made available to customers an on the invoice, the invoice shall be deemed to comply electronic mode of payment with the requirement of Dynamic QR Code. like UPI Collect, UPI Intent or similar other modes of However, if payment is made after generation / payment, through mobile issuance of invoice, the supplier shall provide Dynamic applications or computer QR Code on the invoice. 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?

5. If cross reference of the payment received either Is generation/ printing of Dynamic QR Code on B2C through electronic mode or through cash or invoices mandatory for pre- combination thereof is made on the invoice, then the

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Circular no. 146/02/2021-GST

paid invoices i.e. where invoice would be deemed to have complied with the payment has been made requirement of Dynamic QR Code. before issuance of the In cases other than pre-paid supply i.e. where invoice? payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.

6. The provisions of the notification shall apply to Once the E-commerce operator (ECO) or the each supplier/registered person separately, if such online application has person is liable to issue invoices with Dynamic QR complied with the Dynamic Code for B2C supplies as per the said notification. In QR Code requirements, case, the supplier is making supply through the E- will the suppliers using commerce portal or application, and the said supplier such e-commerce portal or gives cross references of the payment received in application for supplies still respect of the said supply on the invoice, then such be required to comply with invoices would be deemed to have complied with the the requirement of requirements of Dynamic QR Code. In cases other than Dynamic QR Code? pre-paid supply i.e. where payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.

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

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