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QR Code On B2C Invoices

As per Notification No. 14/2020-Central Tax, dated 21 March 2020, taxpayers having an aggregate turnover of more than INR 500 crores had to include a Dynamic Quick Response (QR) code mandatorily in the B2C invoices issued by them, from 1 December 2020. However, via Notification No. 89/2020- Central Tax, dated 29 November 2020, the penalty for non-compliance of the QR code requirements on B2C invoices was waived off provided that the taxpayers will comply with the provisions (include QR codes in B2C invoices) from 1 April 2021.

The CBIC vide Notification No. 28/2021, dated June 30, 2021, has extended the due date for implementing the QR Code in B2C invoices until September 30, 2021.

It has also waived the penalty attributable to the non-compliance of QR Code implementation in B2C invoices till September 20, 2021.

To ensure uniformity in the implementation of the provisions of the law from 1 April 2021, the Government has clarified the following points in Circular no. 146/02/2021-GST:

  • The following taxpayers/suppliers do not have to include QR codes on the B2C invoices issued:
    • Insurance company,
    • Banking company,
    • Financial institution,
    • Non-Banking Financial Company (NBFC),
    • Goods Transportation Agency providing services in relation to transportation of goods by road in a goods carriage,
    • Supplier of passenger transportation service,
    • Supplier supplying services by way of admission to an exhibition of cinematograph films on multiplex screens.
    • OIDAR service providers.
  • In the case of exports, though a registered person makes these supplies to an unregistered person, e-Invoices should be mandatorily issued as per the terms of Notification no. 13/2020-Central Tax, dated 21 March 2020.
  • The dynamic QR code on B2C invoices should include:
    • Supplier’s GSTIN number,
    • Supplier’s UPI ID,
    • Payee’s/Suppliers Bank A/C number and IFSC,
    • Invoice number & invoice date,
    • Total invoice value and
    • Bifurcated GST amount i.e. CGST, SGST, IGST, CESS, etc.

In addition to all of the above points, this dynamic QR Code should be such that it can be scanned to make digital payments.

  • If the supplier has issued an invoice with the required Dynamic QR Code for payment, the said invoice will be deemed to have complied with Dynamic QR Code requirements. Additionally, if the supplier has digitally displayed the Dynamic QR Code, and the customer pays for the invoice through:
    • UPI
    • Debit/Credit Card
    • Online banking
    • Cash or
    • A combination of the above-mentioned payment options with or without using the QR code,

Then the invoice will be deemed to have complied with the requirement of having a Dynamic QR Code provided that the supplier provides a cross-reference of the payment (transaction ID along with the date, time and amount of payment, mode of payment like UPI, Credit card, Debit card, online banking etc.) on the invoice.

Note: If payment is made after generation/issuance of the invoice, the supplier should provide a Dynamic QR Code on the invoice.

  • In case the supplier is making supply through an 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 the Dynamic QR Code. In cases other than pre-paid supply, i.e. where payment is made after generation/issuance of the invoice, the supplier should provide a Dynamic QR Code on the invoice.

Note: The QR code on B2C invoices should be self-generated. The Invoice Registration Portal will not generate QR codes for B2C invoices. This portal is only for B2B invoices, for which e-Invoicing is mandatory.

GST Compliance

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