No requirement of Dynamic QR Code if the payment is received by the supplier, in convertible FOREX or in INR wherever permitted by the RBI
Doubt have arise whether the relaxation from the requirement of dynamic QR code on the invoices would be available to such supplier, who receives payments from the recipient located outside India through RBI approved modes of payment, but not in foreign exchange.
It is mentioned that the intention of clarification as per wording of S. No. 4 of Circular No. 156/12/2021 dated 21stJune 2021, was not to deny relaxation in those cases, where the payment is received by the supplier as per any RBI approved mode, other than foreign exchange.
For this purpose, CBIC has substituted the Entry at S. No. 4 of the Circular No. 156/12/2021 dated 21stJune 2021, which is stated as follows:
4. ” In cases, where receiver of services is located outside India, and payment is being received by the supplier of services ,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?
—“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 convertible foreign exchange or in Indian Rupees wherever permitted by the RBI, 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.”
Points to be noted:
1. Invoice to be issued to a recipient located outside India;
2. Supply is for supply of services;
3. POS is in India and hence, not an export of services;
4. Payment received in convertible FOREX or in INR, as permitted by RBI.