The Central Board of Indirect Taxes and Customs (CBIC) recently issued a Circular No. 146/02/2021-GST dated February 23, 2021 to clarify certain aspects related to applicability of Dynamic Quick Response (QR) Code on B2C invoices
It is important to note that dynamic QR code, in terms of Notification No. 14/2020-Central Tax, dated 21 March 2020 is required to contain the following information:
- Supplier GSTIN number
- Supplier UPI ID
- Payee’s Bank A/C number and IFSC
- Invoice number & invoice date,
- Total Invoice Value and
- 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.
The circular also clarifies that:
- The requirement is not applicable for exports as well as in hands of non-resident OIDAR suppliers
- Online payment through apps – In case 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 Dynamic QR Code is not displayed – In such cases, if 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
- Pre-paid invoices – 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.
- E-commerce supplies – In case, the supplier is making supply through ecommerce portal or application and the said supplier gives cross references of the payment received in respect of said supply on 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.
- Digital display of dynamic QR code is sufficient compliance where customer pays for the invoice 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.
Copy of the circular is attached for your reference.