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[F. No. CBEC 20/06/07/2019-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 30th September, 2020
Notification No. 71/2020 – Central Tax: Seeks to amend notification 14/2020- Central Tax to extend the date of implementation of the Dynamic QR Code for B2C invoices till 01.12.2020.
Table of Contents
[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
G.S.R (E).—In exercise of the powers conferred by sixth proviso to rule 46 of the Central Goods and Services Tax Rules, 2017, the Government, on the recommendations of the Council, hereby makes the following amendments in notification of the Government of India in the Ministry of Finance (Department of Revenue), No.14/2020 – Central Tax, dated the 21st March, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub- section (i), vide number G.S.R. 197(E), dated the 21st March, 2020, namely:–
In the said notification,–
- in the first paragraph, for the words ―a financial year‖, the words and figures ―any preceding financial year from 2017-18 onwards‖ shall be substituted;
- in the second paragraph, for the figures, letters and words ―1st day of October‖, the figures, letters and words ―1st day of December‖ shall be substituted.
(Pramod Kumar)
Director,
Government of India
Note: The principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 14/2020-Central Tax, dated the 21st March, 2020, published vide number G.S.R. 197(E), dated the 21st March, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 71/2020 – Central Tax
Q1: What is Notification No. 71/2020 – Central Tax about?
Answer:
It is an amendment to Notification No. 14/2020 – Central Tax, which initially mandated that businesses with turnover above ₹500 crore must include a Dynamic QR Code on their B2C invoices.
This notification extends the implementation date for this requirement from 1st October 2020 to 1st December 2020 to give taxpayers more time for compliance.
Q2: Why was the implementation date extended?
Answer:
The extension was provided considering the technical and operational challenges faced by large taxpayers while updating their billing systems to generate Dynamic QR Codes automatically.
It was a compliance relief step to ensure smooth transition without penal consequences.
Q3: What is a Dynamic QR Code in the context of GST?
Answer:
A Dynamic QR Code is a scannable barcode printed on B2C invoices that allows customers to make payments directly by scanning the code using UPI, mobile wallets, or online banking apps.
It ensures that the invoice details and payment information are automatically linked, enhancing traceability and ease of payment.
Q4: Which businesses are covered under this notification?
Answer:
The Dynamic QR Code requirement applies to:
Registered persons having aggregate turnover exceeding ₹500 crore in any preceding financial year from 2017–18 onwards.
These businesses issue invoices to unregistered customers (B2C transactions).
📎 If you fall under this category, ensure your GST compliance is up to date: Finodha GST Compliance Services.
Q5: What does Rule 46 of the CGST Rules, 2017 specify?
Answer:
Rule 46 defines the contents of a tax invoice, including mandatory details such as:
Invoice number and date
Supplier and recipient GSTIN
HSN code, taxable value, tax rate, and tax amount
Dynamic QR code (for eligible taxpayers)
The QR code helps digitally authenticate and track invoices, particularly for B2C sales.
Q6: What were the exact amendments made by Notification No. 71/2020?
Answer:
Two specific amendments were introduced in Notification No. 14/2020:
The phrase “a financial year” was replaced with “any preceding financial year from 2017–18 onwards”, expanding applicability.
The effective date “1st October 2020” was replaced with “1st December 2020”, granting a two-month extension.
Q7: How does a Dynamic QR Code work in real life?
Answer:
Here’s a simple example 👇
A customer buys goods worth ₹2,000 from a retail store.
The invoice includes a Dynamic QR Code containing:
Supplier’s GSTIN
Invoice number & date
Total amount
UPI payment link
When the customer scans it via a payment app, the invoice and payment are automatically linked — ensuring seamless payment and GST record matching.
💡 Businesses can integrate this system using Finodha’s GST compliance tools: Explore Finodha GST Services.
Q8: What happens if a taxpayer fails to print a Dynamic QR Code after 1st December 2020?
Answer:
Non-compliance can result in:
Penalty under Section 122 of the CGST Act for issuing an incorrect or incomplete invoice.
Possible scrutiny during GST audit or verification.
However, CBIC provided initial relaxation allowing businesses to adopt gradually, provided genuine efforts were made.
Q9: What are the benefits of using Dynamic QR Codes for B2C invoices?
Answer:
✅ Promotes digital payments and reduces cash handling
✅ Enhances invoice authenticity
✅ Simplifies payment reconciliation
✅ Encourages real-time transaction recording
✅ Reduces scope for tax evasion
Q10: What is the connection between this notification and Notification No. 14/2020?
Answer:
Notification No. 14/2020 – Central Tax first introduced the Dynamic QR Code requirement for B2C invoices.
Notification No. 71/2020 simply amends it to extend its effective date and broaden the applicable financial years.
Q11: How does this extension affect GST-registered e-commerce companies?
Answer:
E-commerce operators with turnover above ₹500 crore are also covered.
They must ensure that each invoice issued to unregistered buyers displays a Dynamic QR Code for UPI or digital payment linkage.
📦 Example:
If Flipkart or Amazon sells directly to customers (B2C), their invoices must contain a scannable QR code post 1st December 2020.
Q12: What is the F. No. and signatory authority for this notification?
Answer:
This notification was issued under F. No. CBEC-20/06/07/2019-GST and signed by Shri Pramod Kumar, Director, CBIC, Government of India.
Q13: Which Section of the CGST Act empowers this amendment?
Answer:
The notification relies on the Sixth Proviso to Rule 46 of the CGST Rules, 2017, read with Section 164 of the CGST Act, granting the Government power to amend implementation timelines for taxpayer convenience.
Q14: How can businesses prepare for Dynamic QR Code implementation?
Answer:
✅ Integrate billing software with payment gateways.
✅ Use UPI-enabled invoice templates.
✅ Regularly reconcile QR-linked payments in GST returns.
✅ Seek professional GST automation assistance.
📘 Start now with Finodha GST Return Filing Services.
🏁 Conclusion
Notification No. 71/2020 – Central Tax represents a proactive step by CBIC to give taxpayers more time to align with Dynamic QR Code compliance for B2C transactions.
By facilitating digital payments and invoice traceability, it strengthens India’s Digital GST infrastructure and promotes the government’s cashless economy vision.
💡 Stay compliant before deadlines!
Start integrating QR-ready invoicing today with Finodha GST Compliance Experts.
Download PDF: Notification No. 71/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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