GST Clarification on Dynamic QR Code for B2C Invoices – CBIC Circular 165/21/2021
<h3><strong>Key Highlights from CBIC Circular No. 165/21/2021-GST</strong></h3><p>The Central Board of Indirect Taxes and Customs (CBIC) has issued a crucial clarification regarding the requirement of Dynamic QR Codes on B2C invoices, particularly for services provided to foreign customers where the place of supply remains in India. This update resolves confusion related to payments received through RBI-approved channels but not necessarily in foreign exchange.</p><h3><strong>1. Relaxation on Dynamic QR Code Requirement</strong></h3><ul><li>Businesses providing services to customers outside India, <strong>where the place of supply is in India under IGST Act</strong>, were earlier unsure whether QR codes were mandatory.</li><li>The updated clarification states that <strong>if the payment is received through any RBI-approved mode (including INR where permitted), a QR code is NOT required</strong>.</li><li>This change ensures compliance without unnecessary invoicing modifications for such transactions.</li></ul><h3><strong>2. Applicability to Foreign Customers</strong></h3><ul><li>The clarification mainly impacts service providers catering to <strong>foreign clients</strong> while operating in India.</li><li>It distinguishes such transactions from exports under GST, ensuring that businesses do not face QR code compliance issues.</li></ul><h3><strong>3. Amendment to Previous Circular</strong></h3><ul><li>This circular <strong>modifies Circular No. 156/12/2021-GST</strong>, aligning the QR code exemption criteria with RBI-approved payment modes.</li><li><a href="https://cms.plasament.com/storage/chirag-singla/circular-final-165-21-2021.pdf">circular-final-165-21-2021</a><br> </li></ul>