1. When is Dynamic QR code applicable?
Ans:Taxpayers with an aggregate turnover of more than Rs.500 crore in any preceding financial year (starting from 2017-18) are compulsorily required to generate QR code on their B2C invoices from 1st December 2020 (initially was from 1st October 2020 but was deferred by the Notification No. 71/2020).
2. What is the QR Code for B2C Invoices?
Ans:A QR code is a quick response code. It is a two-dimensional version of a barcode and can be scanned from any mobile device.
3. Whether this QR code is to be generated on Government’s portal?
Ans: No, B2C QR code has to be self-generated by the taxpayer. For B2C invoices, IRN generation is not required. If a B2C invoice is sent to IRP, it will be automatically rejected.
Under B2B invoices:
QR codes are generated by the IRP and not the taxpayer.
Under B2C invoices:
A taxpayer can generate QR code using their own QR code generating machines and algorithms. NOT required to be generated on the GST portal.
4. What are the contents of B2C QR code?
Ans: Contents of B2C QR Code:
- Supplier GSTIN
- Supplier UPI ID
- Supplier’s bank account details and IFSC code
- Invoice number and date
- Total invoice value
- Breakup of GST amounts (CGST, SGST, IGST, CESS, etc.)
- Link to a digital payment method
The scanning of the dynamic QR code should allow the digital payment by the customer.
Sample B2C QR Code Invoice:
5. If a Dynamic QR Code has been provided, but the customer opts to make a payment without using it. Will this situation be treated as compliance with the Dynamic QR Code requirements?
Yes. If a supplier has issued an invoice containing a Dynamic QR Code, the invoice will be deemed to have complied with the Dynamic QR Code requirements. In the following cases, if the supplier has digitally displayed the Dynamic QR Code, the requirement will be said to be complied with, if-
- The customer pays through credit/debit card or through UPI, and the supplier provides a cross-reference of these payment details on the invoice, such as the transaction ID, date, time, amount, and mode of payment.
- The customer pays with cash, and the supplier provides a cross-reference of the date and amount details on the invoice.
6. Suppose a supplier provides digital modes of collecting payments, such as UPI Collect, UPI Intent, etc. through a mobile or computer-based application, where the Dynamic QR Code is not displayed but only the details of the merchant and the transaction details are displayed. Will this situation be treated as compliance with the Dynamic QR Code requirements?
As long as a cross-reference can be provided on the invoice about the payment made using such electronic modes of payment, the invoice will be deemed to have complied with the Dynamic QR Code requirements. But if payment is made later on after issuing the invoice, then the dynamic QR code must be displayed on it.
7. If the payment for an invoice has been made before the invoice has been issued, then is the generation of printing of the Dynamic QR Code on the invoice mandatory?
No, generation/printing of the Dynamic QR Code is not required in cases where payment is made before the issuance of the invoice. However, a cross-reference needs to be provided on the invoice, of the payment made through cash/electronic mode or a combination of both. Having satisfied these conditions, the invoice will be deemed to be compliant with Dynamic QR Code requirements. On the other hand, if payment is made later on after issuing the invoice, then the dynamic QR code must be displayed on it.
8. Will suppliers selling through e-commerce operators or other online applications be required to comply with Dynamic QR Code requirements, if the e-commerce operator/application has already complied with the same?
The Dynamic QR Code requirements will apply to each supplier individually. Hence, if a supplier is able to provide a cross-reference of the payment received with regard to an invoice, on the said invoice, then the invoice will be deemed to be compliant with Dynamic QR Code requirements. But if payment is made later on such as COD after issuing the invoice, then the dynamic QR code must be displayed on it.
9. Who are exempted from generating QR code for B2C invoices?
Ans:
- Insurance company,
- a banking company or financial institution,
- a non-banking financial company,
- a goods transport agency,
- passenger tickets by transport business,
- movie tickets by multiplex screens, and
- non-residents making Online Information Database Access and Retrieval services.
10. What is the penalty for non compliance to these provisions?
Ans: Penalty under Section 125 of up to Rs. 50,000 (CGST + SGST) can be levied
