Clarifications on applicability of Dynamic QR code on B2C Invoices
by ReinHeads Team | Jun 24, 2021
| Clarifications on applicability of Dynamic QR code on B2C Invoices |
| Dear All,
This is in reference to the clarification issued by the Central Board of Indirect Taxes and Customs (‘CBIC’) vide Circular No. 156/12/2021-GST dated 21 June 2021 in continuation to earlier Circular No. 146/02/2021-GST dated 23 February 2021 (‘the Circulars’) in respect of applicability of Dynamic Quick Response (‘QR’) Code on B2C invoices w.e.f. 01 July 2021.
We have hereinbelow summarized key clarifications provided vide the Circulars :
| Issues |
Clarifications |
| Applicability of Dynamic QR code |
- Invoice issued by registered person having aggregate turnover in any financial year from 2017-18 onwards exceeding INR 500 crores to an unregistered person i.e., B2C invoice shall have Dynamic QR code w.e.f. 01 July 2021
- Penalty for non-compliance of the same prior to 01 July 2021 is waived subject to the condition of compliance w.e.f. 01 July 2021
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| Cases where Dynamic QR code is not applicable |
· The said compliance is not applicable in following cases:
- Supply by Insurer or a banking company or a financial institution , including a non- banking financial company
- Supply by Goods transport agency supplying services in relation to transportation of goods by road in a goods carriage
- Supply of passenger transportation service
- Supply of services by way of admission to the exhibition of cinematograph films in multiplex screens
- OIDAR supplies made by registered person to an unregistered person
- Export supplies as the same is treated as B2B supply for the purpose of E-invoicing
- Supply of services to person located outside India for which POS is in India and payment is received in foreign exchange
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| Parameters/details required under Dynamic QR code |
- Supplier’s details (GSTIN, UPI ID, Tax invoice details). Bank Account and IFSC details are not required as the same is linked with UPI ID
- Dynamic QR code should be such that it can be scanned to make a digital payment
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| Cases where supplier has provided/ digitally displayed Dynamic QR code and payment is made without using it |
Invoice having cross reference i.e., transaction ID, date of payment, mode of payment done through UPI, credit/debit card, online banking, cash etc. shall be deemed to have been complied with the provision of Dynamic QR code |
| Supplies made through E-Commerce Operator (‘ECO’)/ online application |
- Applicable to ECO/online application and supplier separately. Where ECO/ online application facilitates dynamic QR code for pre-paid payment, the supplier is required to give cross reference of the payment on invoice
- In cases other than prepaid supply i.e., where payment is required to be made after generation of invoice, the supplier shall provide dynamic QR code on the invoice
- Where ECO or any other authorised person by the supplier are collecting money on behalf of supplier, UPI ID of such ECO/ authorised person may be given in dynamic QR code instead of UPI ID of the supplier
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| Cases where prepaid payments is made |
- Full payment received in Advance: Invoice having cross reference of the payment shall deemed to have been complied with the provision of Dynamic QR code
- Payment received after generation/issuance of invoice: Supplier shall provide Dynamic QR code on invoice
- Partial payment received in Advance: Dynamic QR code may only provide the remaining amount payable by the customer against the ‘Invoice value’. Further, the invoice should contain details of Total invoice value, cross reference of part payment/advance/adjustment done and remaining amount to be paid
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| In cases of over the counter retail sales where Dynamic QR code is digitally displayed before generation of invoice |
- Where the invoice number is not available at the time of digital display of Dynamic QR code, unique order ID/sales reference number, which is uniquely linked to the invoice issued for the said transaction, may be provided in the Dynamic QR code for digital display
- Cross reference of such payment along with unique order ID/sales reference number should also be provided on the invoice
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| In cases where Dynamic QR code is not displayed and payment is made via electronic mode of payment made available by supplier to customer (like UPI Collect, UPI Intent, etc.) |
- Pre-paid payment: Invoice having cross reference of the payment shall deemed to have been complied with the provision of Dynamic QR code
- Payment made after generation/issuance of invoice: Supplier shall provide Dynamic QR code on the invoice
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