Circular No. 146/02/2021-GST: Clarifications on Dynamic QR Code for B2C Invoices

2025-03-03 08:38:20 02March

02March

Circular No. 146/02/2021-GST: Clarifications on Dynamic QR Code for B2C Invoices

<h4>Introduction</h4>The Government of India issued Circular No. 146/02/2021-GST to provide clarifications on the applicability of Dynamic Quick Response (QR) Codes on B2C invoices as mandated by Notification No. 14/2020-Central Tax, dated 21st March 2020. This requirement applies to registered taxpayers with an aggregate turnover exceeding ₹500 crores and aims to promote digital payments and streamline compliance.<hr><h3>Key Highlights of the Circular</h3><ol><li>Applicability of Dynamic QR Code on B2C Invoices<ul><li>Required for tax invoices issued to unregistered persons (B2C transactions) by taxpayers whose turnover exceeds ₹500 crores from FY 2017-18 onwards.</li><li>Not applicable for:<ul><li>Insurers, banks, financial institutions (including NBFCs).</li><li>Goods Transport Agencies (GTAs) providing road transport services.</li><li>Passenger transportation service providers.</li><li>Cinemas and multiplexes for film screenings.</li><li>OIDAR (Online Information and Database Access or Retrieval) services provided by registered persons under Section 14 of IGST Act, 2017.</li></ul></li></ul></li><li>Exemption for Export Invoices<ul><li>Although exports are technically B2C transactions, they require e-invoicing under Notification No. 13/2020, treating them as B2B supplies.</li><li>Hence, Dynamic QR Code requirement does not apply to export invoices.</li></ul></li><li>Mandatory Parameters in Dynamic QR Code<ul><li>Supplier GSTIN number.</li><li>Supplier UPI ID.</li><li>Payee’s bank details (A/C number & IFSC).</li><li>Invoice number and date.</li><li>Total invoice value.</li><li>GST breakup (CGST, SGST, IGST, CESS, etc.).</li><li>Scannable QR code for digital payments.</li></ul></li><li>What if the Customer Doesn’t Use the QR Code?<ul><li>If an invoice contains a Dynamic QR Code, it is deemed compliant, even if the customer chooses other payment methods (e.g., UPI, credit/debit card, net banking, or cash).</li><li>The supplier must reference the transaction details on the invoice (Transaction ID, date, amount, mode of payment).</li></ul></li><li>Alternative Payment Methods & Compliance<ul><li>If a business offers UPI Collect, UPI Intent, or other digital modes without displaying a QR Code, then:<ul><li>The invoice is considered compliant if payment details are cross-referenced on the invoice.</li><li>If the payment happens after invoice generation, then a Dynamic QR Code must be displayed on the invoice.</li></ul></li></ul></li><li>Prepaid Invoices (Advance Payments)<ul><li>If a customer pays before invoice issuance (prepaid transaction), then cross-referencing payment details on the invoice is sufficient for compliance.</li><li>If the invoice is issued first, the supplier must provide a Dynamic QR Code.</li></ul></li><li>E-Commerce Platforms & Compliance<ul><li>The supplier is responsible for Dynamic QR Code compliance even when selling through an e-commerce platform.</li><li>If the e-commerce operator provides a Dynamic QR Code and the supplier cross-references the payment on the invoice, then it is deemed compliant.</li><li>If payment is made after invoice generation, the supplier must provide a Dynamic QR Code.<a href="https://cms.plasament.com/storage/nisha/circular-refund-146.pdf">circular_refund_146</a>  </li></ul></li></ol>