GST- Dynamic QR Code- Supplier using E-commerce operator (ECO) or the online application(s)

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

Various references have been received from classes of taxpayers seeking clarification on the applicability of Dynamic Quick Response (QR) Code on B2C (Registered person to Customer). This article explains the various issues of Dynamic QR Code for supply made through E-commerce operator or the online applications.

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

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

Answer:

Cross reference of the payment made using such electronic modes of payment need to be made on the invoice.

If payment is made after generation / issuance of invoice, the supplier shall provide Dynamic QR Code on the invoice.

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?

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

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Source : CBIC