Circular No.: 165/21/2021-GST
Date of Circular: 17th November 2021
Relevant Sections and Rules:
- CGST Act, 2017:
- Section 168(1): Power to issue instructions
- IGST Act, 2017:
- Section 2(6): Export of services
- Referenced Circular:
- Circular No. 156/12/2021-GST dated 21.06.2021
- Notification Referenced:
- Notification No. 14/2020 – Central Tax dated 21.03.2020 (QR Code on B2C invoices)
Summary of Clarification:
- Relaxation from QR Code Requirement for Certain Cross-Border B2C Services:
This circular addresses representations regarding Dynamic QR Code requirements on B2C invoices issued by Indian suppliers of services where:
- The recipient is located outside India,
- The place of supply is in India (hence, not export under Section 2(6) of IGST Act), and
- Payment is received through RBI-approved modes, but not necessarily in foreign exchange.
It clarifies that in such cases, even though the supply is not an export, the invoice need not include a Dynamic QR Code, provided the payment is received through:
- Convertible foreign exchange, or
- Indian Rupees, wherever permitted by RBI.
This relaxation is justified since Dynamic QR Code is not usable by recipients located outside India for making payments.
- Modification of Earlier Circular:
Accordingly, Serial No. 4 of Circular No. 156/12/2021-GST is substituted to reflect this clarification. The revised position confirms that B2C invoices issued to foreign service recipients, where payment is received in RBI-permitted modes, need not carry a Dynamic QR Code.
Source: Circular No.: 165/21/2021-GST