Circular no. 146/02/2021-GST
1
F. No. 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 23
rd
February, 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.
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. 89/2020-
Central Tax, dated 29
th
November 2020, 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 31
st
March, 2021, subject to the condition that the said person complies with the provisions
of the said Notification from 01
st
April, 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 No. 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 in the table below:
Circular no. 146/02/2021-GST
2
Sl.
No.
Issues Clarification
1.
To which invoice is
Notification No 14/2020-
Central Tax dated 21
st
March, 2020 applicable?
Would this requirement be
applicable on invoices
issued for supplies made
for Exports?
This notification is applicable to a tax invoice issued to
an unregistered person by a registered person (B2C
invoice) whose annual aggregate turnover exceeds 500
Cr rupees in any of the financial years from 2017-18
onwards. However, the said notification is not
applicable to an invoice issued in following cases:
i. Where the supplier of taxable service
is:
a) an insurer or a banking
company or a financial
institution, including a
non-banking financial
company;
b) a goods transport
agency supplying
services in relation to
transportation of goods
by road in a goods
carriage;
c) supplying passenger
transportation service;
d) supplying services by
way of admission to
exhibition of
cinematograph in films
in multiplex screens
ii. OIDAR supplies made by any
registered person, who has obtained
registration under section 14 of the
IGST Act 2017, to an unregistered
person.
Circular no. 146/02/2021-GST
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As regards the supplies made for exports, though such
supplies are made by a registered person to an
unregistered person, however, as e-invoices are
required to be issued in respect of supplies for exports,
in terms of Notification no. 13/2020-Central Tax,
dated 21
st
March, 2020 treating them as Business to
Business (B2B) supplies, Notification no. 14/2020-
Central Tax, dated 21
st
March, 2020 will not be
applicable to them.
2.
What parameters/ details
are required to be captured
in the Quick Response
(QR) Code?
Dynamic QR Code, in terms of Notification No.
14/2020-Central Tax, dated 21
st
March, 2020 is
required, inter-alia, to contain the following
information: -
i. Supplier GSTIN number
ii. Supplier UPI ID
iii. Payee’s Bank A/C number and IFSC
iv. Invoice number & invoice date,
v. Total Invoice Value and
vi. 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.
3.
If a supplier provides/
displays Dynamic QR
Code, but the customer
opts to make payment
without using Dynamic QR
Code, then will the cross
reference of such payment,
made without use of
Dynamic QR Code, on the
If the supplier has issued invoice having Dynamic QR
Code for payment, the said invoice shall be deemed to
have complied with Dynamic QR Code requirements.
In cases where the supplier, has digitally displayed the
Dynamic QR Code and the customer pays for the
invoice: -
i. Using any mode like UPI, credit/ debit card
or online banking or cash or combination of
various modes of payment, with or without
Circular no. 146/02/2021-GST
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invoice, be considered as
compliance of Dynamic QR
Code on the invoice?
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 ; or
ii. In cash, without using Dynamic QR Code
and the supplier provides a cross reference
of the amount paid in cash , along with date
of such payment on the invoice;
The said invoice shall be deemed to have complied
with the requirement of having Dynamic QR Code.
4.
If the 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
though Dynamic QR Code
is not displayed, but the
details of merchant as well
as transaction are
displayed/ captured
otherwise, how can the
requirement of Dynamic
QR Code as per this
notification be complied
with?
In such cases, if the 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.
However, if payment is made after generation /
issuance of invoice, the supplier shall provide Dynamic
QR Code on the invoice.
5.
Is generation/ printing of
Dynamic QR Code on B2C
invoices mandatory for pre-
If cross reference of the payment received either
through electronic mode or through cash or
combination thereof is made on the invoice, then the
Circular no. 146/02/2021-GST
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paid invoices i.e. where
payment has been made
before issuance of the
invoice?
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.
6.
Once the E-commerce
operator (ECO) or the
online application has
complied with the Dynamic
QR Code requirements,
will the suppliers using
such e-commerce portal or
application for supplies still
be required to comply with
the requirement of
Dynamic QR Code?
The provisions of the notification shall apply to
each supplier/registered person separately, if such
person is liable to issue invoices with Dynamic QR
Code for B2C supplies as per the said notification. In
case, the supplier is making supply through the E-
commerce portal or application, and the said supplier
gives cross references of the payment received in
respect of the said supply on the 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.
3. It is requested that suitable trade notices may be issued to publicize the contents of this
circular.
4. 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
