CBIC has issued clarifications in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices

Feb 24, 2021 | by Avantis RegTech Legal Research Team

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Finance & Taxation Compliance

The Central Board of Indirect Taxes and Customs (CBIC) on February 23, 2021 has issued a circular for the Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated March 21, 2020 which specifies that an invoice issued by a registered person, whose aggregate turnover in a financial year exceeds five hundred crore rupees, other than those referred to in sub-rules (2), (3), (4) and (4A) of rule 54 of said rules, and registered person referred to in section 14 of the Integrated Goods and Services Tax Act, 2017, to an unregistered person (hereinafter referred to as B2C invoice), shall have Dynamic Quick Response (QR) code. 

The following clarifications have been given: 

• 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.

• Dynamic QR Code 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.

• 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 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.

• 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.

[Circular No. 146/02/2021-GST]



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