{"id":1552,"date":"2021-05-12T04:17:00","date_gmt":"2021-05-12T04:17:00","guid":{"rendered":"https:\/\/www.akgvg.com\/blog\/?p=1552"},"modified":"2021-05-13T04:55:12","modified_gmt":"2021-05-13T04:55:12","slug":"challenges-ahead-in-implementation-of-dynamic-qr-code","status":"publish","type":"post","link":"https:\/\/www.akgvg.com\/blog\/challenges-ahead-in-implementation-of-dynamic-qr-code\/","title":{"rendered":"Challenges Ahead in Implementation of Dynamic QR Code"},"content":{"rendered":"\n
\"Dynamic<\/figure>\n\n\n\n

In an attempt to reduce GST <\/strong><\/a>evasion and increasing business efficiency, the government had introduced an e-invoicing system. It is a standardized system that enables reporting of the B2B, and Export invoices being issued by the taxpayers to their customers on the government portal and obtaining a unique Invoice Reference Number (IRN). <\/p>\n\n\n\n

E-invoicing provisions were introduced in a phased manner beginning with the rollout of e-invoicing from 1st<\/sup> October 2020 for businesses having aggregate turnover exceeding Rs. 500 crores in any of the financial years beginning from F. Y. 2017-18. The 2nd<\/sup> & 3rd<\/sup> phase implementation of e-invoicing provisions have been depicted image below.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Applicability of E-Invoicing Provisions in Phased Manner<\/h2>\n\n\n\n
\"\"<\/figure><\/div>\n\n\n\n

Furthermore, a dynamic QR (Quick Reference) code was required to be printed on all business to customers (B2C) tax invoices issued by a registered taxable person having aggregate turnover exceeding Rs. 500 crores during any of the financial years beginning from F.Y 2017-18.<\/p>\n\n\n\n

Initially, the dynamic QR code was required to be mentioned w.e.f. 1st<\/sup> April 2020 vide notification number 72\/2019 \u2013 Central Tax but it got postponed to 1st<\/sup> October 2020 and further postponed to 1st<\/sup> December 2020 vide notification number 14\/2020 and notification number 71\/2020 respectively due to the pandemic-like situation in the country and the businesses were not ready to implement the same technologically.<\/p>\n\n\n\n

As part of providing relief to the taxpayers, notification number 89\/2020 and notification number 06\/2021 were issued waving of penalty under Section 125 of the CGST Act, 2017 from 1st<\/sup> December 2020 to 30th<\/sup> June 2021 for taxpayers issuing tax invoices without dynamic QR code for B2C transactions, subject to the condition that the said person complies with the provisions of Notification 14\/2020 from 1st<\/sup> July 2021.<\/p>\n\n\n\n

Amidst the confusion among taxpayers, CBIC <\/strong><\/a>has issued a circular (Circular no. 146\/02\/2021) clarifying the applicability and various difficulties which may be faced by the taxpayers in the implementation of the said notification. Hence, a taxpayer needs to be aware of the below-mentioned points for better compliance with the requirement to mention dynamic QR code on B2C invoices.<\/p>\n\n\n\n

Issue-1. Is there any difference between the QR code issued for e-invoice and the dynamic QR code?<\/strong><\/strong><\/p>\n\n\n\n

Yes, there is a difference. Dynamic QR code is issued by taxpayers for business-to-customer (B2C) transactions whereas QR code for e-invoice is issued by a taxpayer concerning business-to-business (B2B) transactions.<\/p>\n\n\n\n

Issue-2. Which class of taxpayers are not required to mention dynamic QR code on B2C invoices?<\/strong><\/p>\n\n\n\n

The below-mentioned class of taxpayers is not required to mention dynamic QR code on B2C invoices:<\/p>\n\n\n\n

i. Where the taxable service is supply by:<\/p>\n\n\n\n

a) either a banking company or an insurer or a financial institution, including NBFC<\/p>\n\n\n\n

b) an agency who transports goods and supplying services related to transportation of goods in a goods carriage by road.<\/p>\n\n\n\n

c) a way of taking part in an exhibition of the cinematograph in films in multiplex screens<\/p>\n\n\n\n

d) providing services through a way of taking part in an exhibition of the cinematograph in films on multiple screens<\/p>\n\n\n\n

ii. OIDAR supplies made by any registered person<\/p>\n\n\n\n

Issue- 3. Which details are needed to be a catch in the Dynamic QR Code?<\/strong><\/strong><\/p>\n\n\n\n

Following are the details that should be contained by Dynamic QR Code: –<\/p>\n\n\n\n

  1. Supplier GSTIN number<\/li>
  2. Supplier UPI ID<\/li>
  3. Payee\u2019s Bank A\/C number and IFSC<\/li>
  4. Invoice number & invoice date,<\/li>
  5. Total Invoice Value and<\/li>
  6. GST amount along with its breakup i.e. CGST, SGST, IGST, CESS, etc.<\/li><\/ol>\n\n\n\n

    Further, a Dynamic QR Code should be like that can be scanned for making a digital payment.<\/p>\n\n\n\n

    Issue-4. In the case of exports, the overseas customer does not have a GSTIN number. Whether a Dynamic QR code has to be issued for export invoices?<\/strong><\/strong><\/p>\n\n\n\n

    No, a dynamic QR code is not needed to issue for export invoices because e-invoice is already issued for such transactions.<\/p>\n\n\n\n

    Issue-5. In case the customer wanted to pay without using Dynamic QR Code even after providing by the supplier, then, will the cross-reference of that payment be evaluated as compliance of Dynamic QR Code on the invoice, without using Dynamic QR Code for payment?<\/strong><\/strong><\/p>\n\n\n\n

    Yes, the said invoice will be considered to have complied Dynamic QR Code, if the supplier has provided an invoice of the payment having Dynamic QR Code.<\/p>\n\n\n\n

    Issue-6. In some cases, we see that retailer collects the payment before providing a tax invoice, like sharing the OTP in case of paying through a link or Paytm. Even, in this type of case, the retailer has to provide a Dynamic QR code?<\/strong><\/strong><\/p>\n\n\n\n

    In the aforementioned cases, there is no requirement to provide any tax invoice with a dynamic QR code as the payment is collected before the invoice is issued and cross-reference for the payment and invoice already exist. Although, if payment is made after providing an invoice, the Dynamic QR Code will be provided by the supplier on the invoice.<\/p>\n\n\n\n

    Issue-7. In case of cash on delivery by the e-commerce operators or supplies made through e-commerce operations, does the tax invoice issues should have the Dynamic QR code?<\/strong><\/strong><\/p>\n\n\n\n

    Yes, in the case of cash on delivery termed as COD basis, a Dynamic QR code must be issued and printed on the tax invoice.<\/p>\n\n\n\n

    In a nutshell, the Government has provided multiple postponements for the Dynamic QR code rollout, and currently, it is slated to be applicable w.e.f. 1st<\/sup> July 2021 but its application seems to be a bit difficult from the said date amidst these grim pandemic situations. The taxpayers should better equip themselves to be a step ahead in complying with these requirements whenever the government makes them applicable.<\/p>\n\n\n\n

    This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates<\/a> does not intend to advertise its services through this.<\/p>\n\n\n\n

    Posted by:<\/p>\n\n\n\n

    CA Tarun Kapoor<\/p>\n\n\n\n

    AKGVG & Associates<\/p>\n","protected":false},"excerpt":{"rendered":"

    In an attempt to reduce GST evasion and increasing business efficiency, the government had introduced an e-invoicing system. It is a standardized system that enables reporting of the B2B, and Export invoices being issued by the taxpayers to their customers on the government portal and obtaining a unique Invoice Reference Number (IRN). E-invoicing provisions were…<\/p>\n","protected":false},"author":1,"featured_media":1556,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[29,4,484],"class_list":["post-1552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst-services","tag-gst","tag-gst-services","tag-qr-code"],"_links":{"self":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/1552","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/comments?post=1552"}],"version-history":[{"count":3,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/1552\/revisions"}],"predecessor-version":[{"id":1561,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/posts\/1552\/revisions\/1561"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media\/1556"}],"wp:attachment":[{"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/media?parent=1552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/categories?post=1552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.akgvg.com\/blog\/wp-json\/wp\/v2\/tags?post=1552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}