UPI Based Dynamic QR Code on B2C Invoices & Solution by Our Eco-system

Tally Solutions |Updated on: October 1, 2021

• Notification mandating dynamic QR code on B2C invoices
• Business applicability 
• Services/ businesses exempted from dynamic QR code
• Details that need to be captured in dynamic QR code
• Plan of action from Tally
• Solution from our partners

Notification mandating dynamic QR code on B2C invoices

In reference to Notification No. 14/2020-Central Tax dated 21st March, 2020 and circular No. 146/02/2021-GST regarding self-generated dynamic QR code on B2C invoices. 

The notification mandates entities with an aggregate turnover exceeding Rs. 500 crores in a FY to include a QR code on their B2C invoices. It was also specified that a Dynamic Quick Response (QR) code made available to buyer through the digital display (with payment cross-reference) shall be deemed to be having a QR code. In this case, the QR Code is generated by the supplier himself.

The purpose of this notification is to enable and encourage digital payments where buyers can scan the dynamic QR code and make payment from mobile wallet directly. Today, many shops have static QR code at the payment counter, which is scanned by the buyer, but the buyer has to enter the amount to be paid to the shop (in the mobile payment App). The dynamic QR code, on the other hand, will have the payment details and thus ‘scan and pay’ in one go will be possible.

This requirement has no relevance or connection with e-invoicing mandated for B2B Supplies and exports by notified class of taxpayers.

Business applicability

This notification is applicable to all tax invoices issued to an unregistered person by a registered person (B2C invoice) whose annual aggregate turnover exceeds 500 Cr rupees in any of the financial years from 2017-18 onwards. This was expected to come into effect on October 1st, 2020, was then postponed to December 2020. On December 2020 it came into effect however was not made mandatory and the dealers were not going to be penalized for non-compliance, provided they make themselves compliant from 1st April 2021.

With the recent notification, the new mandate will come into existence from 1st October,2021. Also, the penalty imposed on non-compliance of dynamic QR code provisions for B2C invoices between 1st December 2020 and 30th September 2021 is waived.  

To know more read 'Dynamic Quick Response (QR) Code on B2C invoices'

Services/ businesses exempted from dynamic QR code

There are certain types of services or businesses that are exempted from this i.e.:

• An insurer or a banking company or a financial institution, including a non-banking financial company
• A goods transport agency supplying services in relation to transportation of goods by road in a goods carriage
• Supplying passenger transportation service
• Supplying services by way of admission to exhibition of cinematograph in films in multiplex screens
• OIDAR supplies made by any registered person to an unregistered person

Details that need to be captured in dynamic QR code

As regards to the supplies made for exports, though such supplies are made by a registered person to an unregistered person, however, as e-invoices are required to be issued in respect of supplies for exports

• Supplier GSTIN number
• Supplier UPI ID
• Payee’s Bank A/C number and IFSC
• Invoice number & invoice date
• Total Invoice Value and
• GST amount along with breakup i.e. CGST, SGST, IGST, CESS etc.

Plan of action from Tally

As an organization, we are committed to serve our customer base and ensure that they are compliant in every possible way.

We are working to provide a solution that is more holistic and generic for digital payment collections. This will not only solve the requirements of businesses with turnover of Rs. 500 crore and above, but will also serve other businesses looking to help their customers make payments easily through the digital platform using QR code or payment links. Our solution will also ensure that businesses are able to reconcile the payments received through such medium by importing information shared by the digital platforms. This solution will also support the partial payments and generation of new link for the same invoice for other partial payment. We will be able to elaborate more on this once we get closer to the launch of this solution.

For our customers looking for an immediate solution, due to the applicability of this law from 1^st of October 2021, our solution partners have created an Add-on, using which it will be possible to print 'Dynamic QR Code' for UPI Payments on B2C invoices. Following is the list of our partners who have done the add-ons, along with highlights of the solution. You may connect with them to get further details.

Solution from our partners