CBIC vide Circular No. 165/21/2021-GST dated November 17, 2021 has issued clarification on applicability of QR Code on B2C Invoices.

Earlier vide Circular No. 156/12/2021 dated 21st June 2021, it was clarified that an invoice without QR Code can be 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 and the payment is received by the supplier in foreign currency, through RBI approved mediums.

Following such clarification various representations was received by the department wherein the doubt was raised whether relaxation from the requirement of dynamic QR code on the invoices would be available to such suppliers also, who receives payments from the recipient located outside India through RBI approved modes of payment, but not in foreign exchange.

Through the circular it is clarified that 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.”