Dynamic QR Code under GST
1. Applicability of Dynamic Quick Response Code (QR)
Dynamic Quick Response Code QR is applicable whose aggregate turnover exceeds Rs 500 crores rupees in any of the financial year from 2017-18 onwards.
Exclusions: Supplier of taxable services
- An insurer or a banking company or financial institution, a non- banking financial company.
- A goods transport agency supplying services in relation to transportation of goods by roads in a goods carriage.
- Supplying passenger transportation services
- Services by way of admission to exhibition of cinematography in films in multiplex screens. OIDAR supplies made by any registered person who has obtained registration under section 14 of the IGST Act, 2017 to an unregistered person.
2. Dynamic Quick Response Code on exports
The dynamic QR code is not required to be displayed on invoices issued for exports as the supplies are made by the registered person to an unregistered person, and they are treated as B2B supplies and E-invoicing shall be applicable.
3. Parameters/ Details required to be captured in Quick Response Code
Dynamic QR code contain the following information:
- Supplier GSTIN number
- Supplier UPI ID
- Payee’s bank account number and IFSC
- Invoice number & invoice date
- Total invoice value
- GST amount along with the breakup i.e. CGST, SGST, IGST, CESS etc.
Dynamic QR code should be such that it can be scanned to make digital payment.
4. Customer making payment without using Dynamic QR code even when the supplier provides or displays Dynamic QR code
The invoice shall be deemed to have complied with the requirement of dynamic QR code, in case where the supplier have issued invoice and have digitally displayed the Dynamic QR code and the customer pays for the invoice: –
- Using any mode like UPI, credit card/debit card or online banking or cash or combination of various modes of payment, with or without using Dynamic QR code and the supplier provides a cross payment of reference on the invoice or
- In cash without using Dynamic QR code and the supplier provides a cross reference.
Meaning: Cross Reference means the transaction id, along with the date, time, amount of payment, and mode of payment is mentioned on the invoice.
5. Supplier has made available the electronic mode of payment but the Dynamic QR code is not displayed, but the details of merchant as well as transactions are displayed / captured otherwise
In such cases, if the cross reference of the payment made using such electronic mode of payment on the invoice, it shall be deemed to comply with the requirement of the Dynamic QR code. However, if the payment is made after generation / issuance of invoice the supplier shall provide Dynamic QR Code.
6. Generation or printing of Dynamic QR Code on B2C invoices mandatory for prepaid invoices
If cross reference of the payment received either through electronic mode or through cash or combination, there – of is made on the invoice, then it shall be deemed to have complied with the requirement of Dynamic QR Code.
But in case of other than pre- paid invoices, the supplier shall provide Dynamic QR Code on the invoice.
Prepaid Invoices means that the payment is received before the issuance of invoice.
7. Suppliers using the portal of E Commerce portal or other online application for supplies need to comply with the requirement of dynamic QR Code even if such e commerce operator or the other online application has complied with the Dynamic QR Code requirement.
The provisions of the notification shall apply to each supplier /registered person separately.
The supplier needs to comply with the requirements of the Dynamic QR Code, if it satisfies the conditions as specified in the notification i.e. it has a turnover of Rs 500 crores and issues invoice to unregistered person.
Supplier making supplies through E Commerce portal or other online application:
- if the supplier gives cross reference of the payment received either through electronic mode or through cash or combination, there- of is made on the invoice, then it shall be deemed to have complied with the requirement of Dynamic QR Code.
- In case of other than pre- paid invoices, the supplier shall provide Dynamic QR Code on the invoice.
8. Whether Dynamic QR code is to be provided on an invoice, issued to a person who has obtained a Unique Identity Number
Any person who has obtained a Unique Identity Number as per the provisions of sub- section 9 of section 25 of the Act, is not a registered person. Therefore, any invoice issued to such person having UIN shall be considered as invoice issued for B2C supply and shall be required to comply with the requirement of Dynamic QR Code.
9. Whether bank account details to be provided separately in case of the UPI ID is linked to the bank account of the payee / person collecting money.
Separate details of the bank need not to be provided in Dynamic QR Code in case UPID is linked to specific bank account of the person of the person / payee collecting money.
10. In case of other person authorized by supplier to collect payment, whether UPID of such other may be provided
In case where the payment is collected by some other person, authorized by the supplier, then UPI ID of such other person may be provided in the Dynamic QR Code, instead of UPI ID of the supplier.
11. In case of the service recipient is located outside India but the place of supply is in India and payment is received in foreign currency as approved by the RBI.
In case the invoice issued by the supplier located in India to a recipient located outside India, and the amount is received in foreign currency as approved by the RBI, then such invoice may be issued without having Dynamic QR Code, as it cannot be used by the recipient to make payment.
12. In case of retail sales, the payment from the customer is received on the payment counter by displaying dynamic QR code, where- as the invoice along with the invoice number is generated on the processing system being used by the supplier / merchant after receiving the payment.
Where the invoice is not available at the time of digital display of dynamic QR code in case of over the counter sales, the unique order ID/ unique sales reference number which is uniquely linked to the invoice may be provided in the Dynamic QR code for digital display.
The details of such unique order ID / sales reference number linkages with the invoice are available on the processing system of the supplier and cross reference of such payment along with the unique ID / sales reference number is provided on the invoice.
13. In case part payment has already been received before the Dynamic QR Code is generated
Purpose of the Dynamic QR Code: It is used to enable the recipient / customer to scan and pay the amount to be paid to the merchant /supplier in respect to the said supply.
When the part payment for the supply has been received from the customer/recipient, then Dynamic QR code may be provided only for the remaining amount payable by the customer against the invoice value. The details of the total invoice value along with the details! cross reference of the part payment! advance! adjustment done and the remaining amount to be paid should be provided in the invoice.