Applicability of Dynamic Quick Response (QR) Code on B2C invoices
Circular No. 165/21/2021-GST
The CBIC has issued Circular No. 165/21/2021-GST clarifying issues relating to the applicability of the Dynamic Quick Response (QR) Code on B2C invoices. This Circular has the effect of modifying Circular No. 156/12/2021-GST issued by the CBIC on 21st June 2021.
Issue Dealt by the Circular:
- In various cases, where the service recipient is located outside India and the place of supply of the service is in India as per IGST Act, 2017, the payment is received by the service provider located in India not in foreign exchange, but through other modes approved by the RBI.
- It is observed that from the present wording of Sr. No. 4 of Circular No. 156/12/2021 dated 21st June 2021, doubt arises whether the relaxation from the requirement of dynamic QR code on the invoices would be available to such supplier, who receives payments from the recipient located outside India through RBI approved modes of payment, but not in foreign exchange.
Clarification by CBIC:
To clarify the matter, the Entry at Sr. No. 4 of the Circular No. 156/12/2021-GST dated 21st June 2021 is substituted as below:
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In cases, where the receiver of services is located outside India, and payment is being received by the supplier of services, 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?
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No. Wherever an invoice is issued to a recipient located outside India, for supply of services, for which the place of supply is in India, as per the provisions of IGST Act 2017, and the payment is received by the supplier, in convertible foreign exchange or in Indian Rupees wherever permitted by the RBI, such invoice may be issued without having a Dynamic QR Code, as such dynamic QR code cannot be used by the recipient located outside India for making payment to the supplier. |
