This circular provides clarification on the applicability of Dynamic Quick Response (QR) Code on B2C invoices, particularly in cases involving supply of services to recipients located outside India.

It addresses doubts arising from earlier clarification which linked relaxation from Dynamic QR Code requirement to receipt of payment in foreign exchange. The circular clarifies that the intention was not to deny relaxation where payment is received through any mode permitted by the Reserve Bank of India, even if such payment is not in convertible foreign exchange.

Accordingly, it is clarified that where services are supplied to a recipient located outside India, the place of supply is in India as per the IGST Act, 2017, and payment is received by the supplier in convertible foreign exchange or in Indian Rupees wherever permitted by RBI, such invoices may be issued without a Dynamic QR Code. This is because the Dynamic QR Code cannot be effectively used by recipients located outside India for making payment.

To this extent, the earlier Circular No. 156/12/2021-GST dated 21 June 2021 stands modified. The clarification ensures uniform compliance and removes practical difficulties faced by suppliers in such cross-border service transactions.