Clarification in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020

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:

1. 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.

2. 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