You are here : CIRCULAR

CIRCULAR
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

Circular No. 146/02/2021-GST DATED 23.02.2021

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 21st March, 2020 - Reg.

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 crore rupees, w.e.f. 01.12.2020. Further, vide Notification No. 89/2020- Central Tax, dated 29th November 2020, penalty has been waived for non-compliance of the provisions of Notification No.14/2020 – Central Tax for the period from 01st December, 2020 to 31st March, 2021, subject to the condition that the said person complies with the provisions of the said Notification from 01st 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 21st 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:
 
Sl.
No.
Issues
Clarification
1. To      which      invoice      is This notification is applicable to a tax invoice issued to
  Notification    No    14/2020- an unregistered person by a registered person (B2C
  Central    Tax    dated    21st invoice) whose annual aggregate turnover exceeds 500
  March,   2020   applicable? Cr rupees in any of the financial years from 2017-18
  Would this requirement be onwards.   However,   the   said   notification   is   not
  applicable      on      invoices applicable to an invoice issued in following cases:
  issued for   supplies   made i.           Where the supplier of taxable service
  for Exports? 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.
 
 
    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 21st March, 2020 treating them as Business to Business (B2B) supplies, Notification no. 14/2020- Central Tax, dated 21st 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 21st March, 2020 is required, inter-alia, to contain the following information: -
  1. Supplier GSTIN number
  2. Supplier UPI ID
  3. Payee’s Bank A/C number and IFSC
  4. Invoice number & invoice date,
  5. Total Invoice Value and
  6. 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
 
 
  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
 
  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.

Copyright © Kanak Software. All Rights Reserved.