This circular provides clarifications on the requirement of Dynamic Quick Response (QR) Code on B2C invoices issued by taxpayers having aggregate turnover exceeding ₹500 crore, in terms of Notification No. 14/2020–Central Tax.

It clarifies that invoices issued to persons holding a Unique Identity Number (UIN) are to be treated as B2C invoices and must carry a Dynamic QR Code. Where a UPI ID is provided in the QR Code, separate disclosure of bank account and IFSC details is not required. In cases where payment is collected by an authorised person, such as an e-commerce operator or agent, the QR Code may contain the UPI ID of such authorised person instead of the supplier.

The circular further clarifies that where services are supplied to recipients located outside India, the place of supply is in India, and payment is received in foreign exchange through RBI-approved modes, the invoice may be issued without a Dynamic QR Code, as the recipient cannot use such QR Code for payment. For over-the-counter retail sales where the invoice number is generated after receipt of payment, a unique order ID or sales reference number linked to the invoice may be provided in the Dynamic QR Code.

It also clarifies that where part payment has already been received in advance or through adjustments, the Dynamic QR Code should reflect only the balance amount payable, while full payment details must be mentioned on the invoice. The circular modifies earlier clarifications to this extent and aims to facilitate smooth compliance.