Ministry of Finance, CBIC had issued Notification No. 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 crores w.e.f. 1st October 2020 which was subsequently extended to 31st December 2020 and then to 1st April 2021 and then upto 30th June 2021 i.e. Compliance of aforesaid notification is mandatory w.e.f. 1st July 2021.

Now, CBIC has clarified various issues relating to Dynamic QR code and applicability of Notification No. 14/2020-Central Tax, dated 21st March 2020 vide Circular no. 156/12/2021-GST dated 21st June 2021.

Let's understand various issues addressed via said circular:

ISSUES

CLARIFICATIONS

Applicability of Dynamic QR code in case of UIN holders ?

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 Section 25(9) of CGST Act 2017?

YES

Any person, who has obtained a Unique Identity Number (UIN) as per the provisions 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

Requirement of bank details in Dynamic QR code if UPI ID is linked ?

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?

NOT REQUIRED MANDATORILY

 

UPI ID is already linked to a specific bank account of the payee/ person collecting money

UPI ID in case of payment to third party authorised by supplier ?

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.

Requirement of Dynamic QR code in case of supply of service outside India but POS is in India as per GST Law ?

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 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?

NOT REQUIRED

 

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 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

Invoice number in Dynamic QR code where payment counter and invoice generation point are different ?


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 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?

UNIQUE ORDER ID / SALES REFERENCE NUMBER GENERATED WHILE PAYMENT BY CUSTOMER SHALL BE LINKED WITH INVOICE NUMBER AND TO BE DISPLAYED ON INVOICE.

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.

Amount in Dynamic QR code in case of advance received ?

  

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”?

DYNAMIC QR CODE SHALL CONTAIN ONLY THE REMAINING AMOUNT PAYABLE BUT DETAILS OF ADVANCE SHALL BE DISPLAYED ON INVOICE

The purpose of 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 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.

CBIC has issued some clarifications earlier also, in respect on Dynamic QR code, via Circular no. 146/02/2021-GST dated 23rd February 2021


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