Requirement of QR code on e invoice for claiming ITC

QR Code requirement on e-invoice for claiming Input Tax Credit

1. Rule 48(4) is talking about the requirement of IRN only.

2. Requirement of affixing QR code is given in Rule 46 (r) as Tax invoice will contain Quick Response code, having embedded Invoice Reference Number (IRN) in it, in case invoice has been issued in the manner prescribed under sub-rule (4) of rule 48. Affixation of QR code is one out of 18 particulars on tax invoice.

3. provisio of Rule 36(4) says “if the said document (invoice) doesn’t contain all the specified particulars but contain the details of the amount of tax charged, description of goods or services, total value of supply of goods or services or both, GSTIN of the supplier and recipient and place of supply in case of interstate supply, input tax credit may be availed by such registered person.

4. Plain reading of Rule 48(6) says there is no requirement of preparation of invoices in case where e invoice is generated as per Rule 48(4). Though there is requirement of invoice in section 16(2)(a) for claiming ITC. Doesn’t the rule 48(4) is in contravention of provision of section 16(2)? In case supplier doesn’t generate invoice copy, from where the QR code be scanned?

5. Rule 138A(2) Documents and devices to be carried by a person-in-charge of a conveyance. – In case, invoice is issued in the manner prescribed under sub-rule (4) of rule 48, the Quick Response (QR)code having an embedded Invoice Reference Number (IRN) in it, may be produced electronically, for verification by the proper officer in lieu of the physical copy of such tax invoice.]

6. In FAQ dated 30^th March 2021, it had been stated onus is on the concerned taxpayer to check the conditions and follow the law while the recipient shall confirm this fact with his suppliers, as the list may contain the names of exempt entities also but who might have been shown as enabled for e-invoice

Clubbing all provisions we can summarize the same as under

There is mandatory requirement of possession of tax invoice issued under section 31 for claiming ITC as per section 16(2)(a) and reflection of inward invoice details in GSTR 2B as per section 16(2)(aa). QR code requirement is one out of 18 particulars mentioned in tax invoice as per Rule 46 and Rule 36 (Documentary requirements and conditions for claiming input tax credit) doesn’t emphasis the requirement of QR code and allow eligibility of ITC even if QR code is missing on the invoice.

I feel there is no mandatory requirement of having QR code on e invoice for claiming ITC. Rule 48(4) talks about generating IRN by uploading information in prescribed format INV 01 on GST portal and Rule 48(5) talks about the invoice issued in any other manner than Rule 48(4) will be invalid. Rule 138A(2) says QR code can be produced electronically for verification in lieu of physical copy of tax invoice as requirement of generation/submission of physical invoice is removed by Rule 48(6).