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Circular No. 165/21/2021-GST
CBEC-20/16/38/2020 -GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

New Delhi, dated the 17th November, 2021
To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Directors General / Directors General (All)

Madam/Sir,
Subject: Clarification in respect of applicability of Dynamic Quick Response (QR) Code on
B2C invoices and compliance of notification 14/2020- Central Tax dated 21
st
March, 2020 -
Reg.
Various references have been received from trade and industry seeking further
clarification on applicability of Dynamic Quick Response (QR) Code on B2C (Registered person
to Customer) invoices for compliance of notification 14/2020-Central Tax, dated 21
st
March,
2020 as amended. It has been represented that in some cases where, though the service recipient
is located outside India and place of supply of the service is in India as per IGST Act 2017, the
payment is received by the service provider located in India not in foreign exchange, but through
other modes approved by RBI. In such cases, the supplier will not be fulfilling the condition
specified in S. No. 4 of the Circular No. 156/12/2021 dated 21
st
June 2021, and accordingly, will
be required to have dynamic QR code on the invoice. It has been also represented that relaxation
from dynamic QR code on the invoices in such cases should be available if the payment is
received through any RBI approved mode of payment, and not necessarily in foreign exchange.

2. 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 hereafter.
3. It is observed that from the present wording of S. No. 4 of Circular No. 156/12/2021
dated 21
st
June 2021, doubt arises whether the relaxation from the requirement of dynamic QR
code on the invoices would be available to such supplier, who receives payments from the
recipient located outside India through RBI approved modes of payment, but not in foreign
exchange. It is mentioned that the intention of clarification as per S. No. 4 in the said circular
was not to deny relaxation in those cases, where the payment is received by the supplier as per
any RBI approved mode, other than foreign exchange.
4. Accordingly, to clarify the matter further, the Entry at S. No. 4 of the Circular No.
156/12/2021-GST dated 21
st
June, 2021 is substituted as below:
4. " In cases, where receiver of services is
located outside India, and payment is being
received by the supplier of services ,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?
No. Wherever an invoice is issued to a
recipient located outside India, for 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 convertible foreign exchange or
in Indian Rupees wherever permitted by the
RBI, 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."

5. Circular No. 156/12/2021-GST, dated 21.06.2021 stands modified to this extent.
6. It is requested that suitable trade notices may be issued to publicize the contents of this
circular.
7. Difficulty, if any, in the implementation of the above instructions may please be brought to the
notice of the Board. Hindi version would follow.

(Sanjay Mangal)
Principal Commissioner