Circular no. 156/12/2021-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 21
st
June, 2021
To
The Principal Chief Commissioners / Chief Commissioners / Principal Commissioners /
Commissioners of Central Tax (All)
The Principal Director Generals / Director Generals (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.
Notification No. 14/2020-Central Tax, dated 21
st
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 30
th
March 2021, 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 30
th
June,
2021, subject to the condition that the said person complies with the provisions of the said
notification from 1
st
July, 2021. Further, various issues on Dynamic QR Code have been
clarified vide Circular No. 146/2/2021-GST, dated 23.02.2021.
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 14/2020-Central Tax, dated 21
st
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
Circular no. 156/12/2021-GST
in the table below:
1. 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?
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 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.
2. 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?
Given that UPI ID is linked to a specific
bank account of the payee/ person
collecting money, separate details of bank
account and IFSC may not be provided in
the Dynamic QR Code.
3. 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?
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 UPI ID of
the supplier.
4. In cases, where 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
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
Circular no. 156/12/2021-GST
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?
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.
5. In some instances of retail sales over
the counter, the payment from the
customer in received on the payment
counter by displaying dynamic QR
code on digital display, whereas the
invoice, along with invoice number, is
generated on the processing system
being used by supplier/ merchant after
receiving the payment. In such cases, it
may not be possible for the merchant/
supplier to provide details of invoice
number in the dynamic QR code
displayed to the customer on 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
invoice number.
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.
6. When part-payment has already been
received by the merchant/ supplier,
The purpose of dynamic QR Code is to
enable the recipient/ customer to scan and
Circular no. 156/12/2021-GST
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”?
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 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.
3. Circular No. 146/2/2021-GST, dated 23.02.2021 stands modified to this extent.
4. It is requested that suitable trade notices may be issued to publicize the contents of this
circular.
5. 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)
Commissioner
