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GST Clarification on new Dynamic Quick Response (QR) Code on B2C invoices

The Government notified that an invoice issued by a registered person, whose aggregate turnover in a any preceding financial year from 2017-18 onwardsexceeds 500 Crore rupees, to an unregistered person shall have Dynamic QR code from 01.04.2020.


Effective date of Application.

Penalty has been waived for non-compliance of the provisions of notification 14/2020-Central Tax for the period from 01st December, 2020 to 30th June, 2021.



Details are required to be captured in the Quick Response (QR) Code?


(i) Supplier GSTIN number

(ii) Supplier UPI ID

(iii) Payee’s Bank A/C number and IFSC

(iv) Invoice number & invoice date,

(v) Total Invoice Value and

(vi) GST amount along with breakup i.e. CGST, SGST, IGST, CESS, etc. Further, Dynamic QR Code should be such that it can be scanned to make a digital payment.



Frequently Asked Questions


Q: What if the customer opts to make payment without using Dynamic QR?

A: If the supplier has issued invoice having a Dynamic QR Code for payment, the said invoice shall be deemed to have complied with Dynamic QR Code requirements.


Q: What if the customer pays in cash.

A: In case of cash payment, without using Dynamic QR Code the supplier needs to provide a cross-reference of the amount paid in cash, along with the date of such payment on the invoice.


Q: 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 the merchant as well as the transaction are displayed/ captured otherwise, how can the requirement of Dynamic QR Code as per this notification be complied with?

A: Cross-reference of the payment made using such electronic modes of payment need to be made on the invoice. If payment is made after the generation/issuance of the invoice, the supplier shall provide a Dynamic QR Code on the invoice.


Q: Supply using E-commerce operator (ECO) or the online application(s).

A: 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 the invoice, the supplier shall provide Dynamic QR Code on the invoice.


Q: Invoice issued to person having Unique Identity Number (UIN).

A: Any invoice issued to such person having a UIN, shall be considered as invoice issued for a B2C supply and shall be required to comply with the requirement of Dynamic QR Code.


Q: If UPI ID is linked to the bank account of the payee/ person collecting money. Whether bank account and IFSC details also need to be provided separately?

A: No, Separate details of bank account and IFSC may not be provided in the Dynamic QR Code.


Q: In cases where the payment is collected by some person other than the supplier (ECO or any other person authorized by the supplier on his/ her behalf), whether in such cases, in place of UPI ID of the supplier, the UPI ID of such person, who is authorized to collect the payment on behalf of the supplier, may be provided?

A: Yes, UPI ID of such person may be provided in the Dynamic QR Code.


Q: In cases, where the receiver of services is located outside India, and payment is being received by the supplier of services in foreign exchange, through RBI approved modes of payment, but as per provisions of the IGST Act 2017, the place of supply of such services is in India, then such supply of services is not considered as export of services as per the IGST Act 2017; whether in such cases, the Dynamic QR Code is required on the invoice issued, for such supply of services, to such recipient located outside India?

A: No, Such invoice may be issued without having a Dynamic QR Code.


Q. Retail sales over the counter where Dynamic Quick Response (QR) code available to the recipient through a digital display.

A: In such cases, where the invoice number is not available at the time of digital display of dynamic QR code in case of over the counter sales and the invoice number and invoices are generated after receipt of payment, the unique order ID/ unique sales reference number, which is uniquely linked to the invoice issued for the said transaction, may be provided in the Dynamic QR Code for digital display, as long as the details of such unique order ID/ sales reference number linkage with the invoice are available on the processing system of the merchant/ supplier and the cross-reference of such payment along with unique order ID/ sales reference number are also provided on the invoice.


Q: When part-payment has already been received by the merchant/ supplier, either in advance or by adjustment (e.g. using a voucher, discount coupon etc), before the dynamic QR Code is generated, what amount should be provided in the Dynamic QR Code for “invoice value”?

A: The purpose of a dynamic QR Code is to enable the recipient/ customer to scan and pay the amount to be paid to the merchant/ supplier in respect of the said supply. When the part-payment for any supply has already been received from the customer/ recipient, in form of either advance or adjustment through voucher/ discount coupon, etc., then the dynamic QR code may provide only the remaining amount payable by the customer/ recipient against “invoice value”. The details of the total invoice value, along with details/ cross-reference of the part-payment/ advance/ adjustment done, and the remaining amount to be paid, should be provided on the invoice.





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