Quick Response (QR) code on B2C Invoice
Particulars of Invoice : Source of Quick Response (QR) code
Rule 46 of CGST Rule 2017, prescribed the particulars and details to be incorporated in the Tax Invoice such as name, address and Goods and Services Tax Identification Number of the supplier etc.
Vide N/No. 31/2019 – CT 28.06.2019 read with N/No. 71/2019 – CT dated 13.12.2019 rule 46 is amended to empower Government to specify that the tax invoice shall have Quick Response (QR) code such amendment came into force with effect from 01.04.2020.
Applicability of Quick Response (QR) code on B2 Invoice
Notifies that an invoice issued by a registered person, whose aggregate turnover in a financial year exceeds five hundred Crore rupees, to an unregistered person (‘B2C invoice’), shall have Quick Response (QR) code. This notification shall come into force from the 1st day of April, 2020, however this notification is supressed vide N/No 14/2020-CT dated 21.03.2020
WAIVE PENALTY PAYABLE FOR NON-COMPLIANCE OF THE PROVISIONS OF DYNAMIC QUICK RESPONSE (QR) CODE IN B2C INVOICE
Waive penalty payable for non-compliance of the provisions of Dynamic Quick Response (QR) code in B2C invoice, between the periods from [01-12-2020 To 30-06-2021], subject to the condition that the said person will complies with the provisions of Dynamic Quick Response (QR) code in B2C invoice from the 01.07.2021.
In nutshell, Dynamic Quick Response (QR) code on B2C Invoice is applicable from 01.07.2021.
Who is liable to mention Quick Response (QR) code on B2C Invoice A registered person whose annual aggregate turnover exceeds 500 Cr rupees in any of the financial years from 2017-18 onwards.
Who is exempted from Quick Response (QR) code on B2C Invoice – An insurer
What parameters/ details are required to be captured in the Quick Response (QR) Code Dynamic QR Code required 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.
Payment, made without use of Dynamic QR Code, on the invoice, be considered as compliance of Dynamic QR Code on the invoice?
If a supplier 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 invoice, be considered as compliance of Dynamic QR Code on the invoice Yes
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?
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.
If payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.
Is generation/ printing of Dynamic QR Code on B2C invoices mandatory for pre-paid invoices i.e. where payment has been made before issuance of the invoice?
If cross reference of the payment received either through electronic mode or through cash or combination thereof is made on the invoice, then the 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.
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 QR code 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 Ecommerce 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
Whether Dynamic QR Code is to be provided on an invoice, issued to a person, who has obtained a Unique Identity Number (UIN) such as agency of the United Nations Organization, Consulate or Embassy of foreign countries Any person, who has obtained a Unique Identity Number (UIN) is not a “registered person”. Therefore, any invoice, issued to person holding UIN, shall be considered as invoice issued for a B2C supply and shall be required to comply with the requirement of Dynamic QR Code.
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.
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.
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?
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 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.
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.
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.
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”?
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.
Circular No. 146/2/2021-GST, dated 23.02.2021 stands modified to this extent of inconsistency with new clarification