No Dynamic QR Code if payment is received by the supplier, in convertible foreign exchange or in Indian Rupees wherever permitted by the RBI

CBIC issued Clarification vide Circular No. 165/21/2021-GST  dated the 17th November, 2021 in respect of applicability of Dynamic Quick Response (QR) Code on B2C invoices and compliance of notification 14/2020- Central Tax dated 21st March, 2020

CBIC have Received Various references from trade and industry seeking further clarification on applicability of Dynamic Quick Response (QR) Code on B2C (Registered person to Customer) invoices for compliance of notification 14/2020-Central Tax, dated 21st March, 2020 as amended.

It has been said that in some situations, even if the service recipient is located outside of India and the place of supply of the service is in India, as per the IGST Act 2017, payment is received by the service provider located in India not in foreign currency but in other mode allowed by RBI ways. In such cases, the supplier will not be fulfilling the condition specified in S. No. 4 of the Circular No. 156/12/2021 dated 21st June 2021, and accordingly, will be required to have dynamic QR code on the invoice. It has been asked that in such case Relaxation of Dynamic QR code should be Available.

The issues have been investigated, and in order to maintain uniformity in the application of the legislation across all field formations, the Board hereby clarifies the issues.

It’s unclear if a supplier who receives payments from a recipient outside India using RBI-approved modes of payment but not in foreign currency will be eligible for a waiver from the necessity of a dynamic QR code on invoices.

Accordingly, clarification has been issued.

Q. In cases, where 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?

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.”

In case of Difficulty, if any, in the implementation of the above instructions may please be brought to the notice of the Board.