CBIC clarifies 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 vide Circular no. 156/12/2021-GST Dated 21st June 2021.
Notification 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, the penalty has been waived for non-compliance with the provisions of notification 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 the Dynamic QR Code have been clarified vide Circular No. 146/2/2021-GST, dated 23.02.2021.
Q. Whether Dynamic QR Code is to be provided on an invoice, issued to a person, who has obtained a Unique Identity Number as per the provisions of Sub-Section 9 of Section 25 of CGST Act 2017?
A. Any person, who has obtained a Unique Identity Number (UIN) as per the provisions of Sub-Section 9 of Section 25 of CGST Act 2017, is not a “registered person” as per the definition of the registered 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.
Q. UPI ID is linked to the bank account of the payee/ person collecting money. Whether bank account and IFSC details also need to be provided separately in the Dynamic QR Code along with UPI ID?
A. Given that UPI ID is linked to a specific bank account of the payee/ person collecting money, separate details of the bank account and IFSC may not be provided in the Dynamic QR Code.
Q. In cases where the payment is collected by some person other than the supplier (ECO or any other person authorized by the supplier on his/ her behalf), whether in such cases, in place of UPI ID of the supplier, the UPI ID of such person, who is authorized to collect the payment on behalf of the supplier, may be provided?
A. Yes. In such cases where the payment is collected by some person, authorized by the supplier on his/ her behalf, the UPI ID of such person may be provided in the Dynamic QR Code, instead of the UPI ID of the supplier.
Q. In cases, where the receiver of services is located outside India, and payment is being received by the supplier of services in foreign exchange, through RBI approved modes of payment, but as per provisions of the IGST Act 2017, the place of supply of such services is in India, then such supply of services is not considered as export of services as per the IGST Act 2017; whether in such cases, the Dynamic QR Code is required on the invoice issued, for such supply of services, to such recipient located outside India?
A. No. Wherever an invoice is issued to a recipient located outside India, for the supply of services, for which the place of supply is in India, as per the provisions of IGST Act 2017, and the payment is received by the supplier in foreign currency, through RBI approved mediums, such invoice may be issued without having a Dynamic QR Code, as such dynamic QR code cannot be used by the recipient located outside India for making payment to the supplier.
Q. In some instances of retail sales over the counter, the payment from the customer is received on the payment counter by displaying dynamic QR code on a digital display, whereas the invoice, along with invoice number, is generated on the processing system being used by the supplier/ merchant after receiving the payment. In such cases, it may not be possible for the merchant/ supplier to provide details of the invoice number in the dynamic QR code displayed to the customer on the payment counter. However, each transaction i.e. receipt of payment from a customer is having a unique Order ID/ sales reference number, which is linked with 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 the invoice number.
A. In such cases, where the invoice number is not available at the time of digital display of dynamic QR code in case of over the counter sales and the invoice number and invoices are generated after receipt of payment, the unique order ID/ unique 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, as long as the details of such unique order ID/ sales reference number linkage with the invoice are available on the processing system of the merchant/ supplier and the cross-reference of such payment along with unique order ID/ sales reference number are also provided on the invoice
Q. When part-payment has already been received by the merchant/ supplier, either in advance or by adjustment (e.g. using a voucher, discount coupon, etc), before the dynamic QR Code is generated, what amount should be provided in the Dynamic QR Code for “invoice value”?
A. The purpose of a dynamic QR Code is to enable the recipient/ customer to scan and pay the amount to be paid to the merchant/ supplier in respect of the said supply. When the part-payment for any supply has already been received from the customer/ recipient, in form of either 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 the 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.