Frequently Asked Question (FAQs) on Quick Response (QR) Code under GST
As per the circular dated 23rd February, 2021 by Central Board of Indirect Taxes and Customs, Central Board of Indirect Taxes and Customs seeks to clarify the applicability of Dynamic Quick Responses Code on B2C invoices.
- As per notification 14/2020 of Central Tax dated 21st March, 2020:
- Registered person having aggregate turnover of more than Rs. 500 crores need to have dynamic quick response [QR] code on B2C [registered taxpayer to customer] invoices from 01.10.2020.
- As per notification 89/2020 dated 29th November, 2020, penalty for non-compliance of the notification 14/2020 was waived for the period from 1st December, 2020 to 31st March, 2021 subject to the condition that registered person will comply with the notification 14/2020 from 1st April, 2021.
- FAQ 1: To which invoices, notification 14/2020 is applicable?
- To all registered persons, whose turnover exceeds Rs. 500 crores in any of the financial year from 2017-18 onward;
- Invoices issued by registered person to unregistered person;
- FAQ 2: To whom it is not applicable
- Where the supplier of taxable service is:
- An insurer or banking company or financial institution including a non-banking financial company;
- a goods transport agency supplying services in relation to transportation of goods by road in a goods carriage;
- Supplying passenger transport service;
- supplying services by way of admission to exhibition of cinematograph in films in multiplex screens
- OIDAR supplies made by any registered person, who has obtained registration under section 14 of the IGST Act 2017, to an unregistered person.
- FAQ 3:Would this requirement be applicable on invoices issued for supplies made for Exports?
As regards the supplies made for exports, though such supplies are made by a registered person to an unregistered person, however, as e-invoices are required to be issued in respect of supplies for exports, in terms of Notification no. 13/2020-Central Tax, dated 21st March, 2020 treating them as Business to Business (B2B) supplies, Notification no. 14/2020-Central Tax, dated 21st March, 2020 will not be
applicable to them
- FAQ 4 :What details are required to be captured in QR Code?
- Supplier GSTIN Number;
- Supplier UPI ID;
- Payee’s Bank A/C number and IFSC;
- Invoice No. and invoice Date;
- GST amount with breakup in CGST, SGST, IGST and CESS;
Further, Dynamic QR Code should be such that it can be scanned to make a digital payment.
- FAQ 5 : If a supplier provides/ 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? (When customer opts to pay without using QR code?)
- When customer pay using UPI, credit/debit card or online banking,with or without using Dynamic QR Code, and the supplier provides a cross reference of the payment (transaction id along with date, time and amount of payment, mode of payment like UPI, Credit card, Debit card, online banking etc.) on the invoice ; or
- When customer pay in cash, supplier has to provide cross reference of the amount paid in cash , along with date of such payment on the invoice;
- FAQ 6 : 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?
- 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.
However, if payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice
- FAQ 7:QR code on pre-paid invoices?
- Cross reference of payment made either in cash or through electronic mode – provide such details on the invoice
- FAQ 8: 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? (Dynamic QR code in case of supplier using e-commerce portal?)
- 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.