Important Keyword: Notification No. 72/2020 – Central Tax, Eleventh Amendment CGST Rules, e-invoicing QR code rule, CGST Rule 46 amendment, CGST Rule 48(4) IRN, Rule 138A QR verification, Section 164 CGST Act, CBIC GST Notification September 2020, Finodha GST compliance, e-invoice QR code verification.
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[F. No. CBEC-20/06/09/2019-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. 72/2020 – Central Tax: Seeks to make the Eleventh amendment (2020) to the CGST Rules.
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 section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:-
1. (a) These rules may be called the Central Goods and Services Tax (Eleventh Amendment) Rules, 2020.
(b) Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.
2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 46, after clause (q), the following clause shall be inserted, namely:-
“(r) Quick Reference code, having embedded Invoice Reference Number (IRN) in it, in case invoice has been issued in the manner prescribed under sub-rule (4) of rule 48.”.
3. In the said rules, in rule 48, in sub-rule (4), the following proviso shall be inserted, namely:-
“Provided that the Commissioner may, on the recommendations of the Council, by notification, exempt a person or a class of registered persons from issuance of invoice under this sub-rule for a specified period, subject to such conditions and restrictions as may be specified in the said notification.”.
4. In the said rules, in rule 138A, for sub-rule (2), the following sub-rule shall be substituted, namely:-
“(2) In case, invoice is issued in the manner prescribed under sub-rule (4) of rule 48, the Quick Reference (QR) code having an embedded Invoice Reference Number (IRN) in it, may be produced electronically, for verification by the proper officer in lieu of the physical copy of such tax invoice.”.
(Pramod Kumar)
Director,
Government of India
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, vide number G.S.R. 610 (E), dated the 19th June, 2017 and last amended vide notification No. 62/2020 - Central Tax, dated the 20th August, 2020, published vide number G.S.R. 517 (E), dated the 20th August, 2020.
📚 Frequently Asked Questions (FAQs): Notification No. 72/2020 – Central Tax
Q1: What is Notification No. 72/2020 – Central Tax about?
Answer:
It is the Eleventh Amendment to the CGST Rules, 2017, focusing on incorporating Quick Response (QR) codes and Invoice Reference Numbers (IRN) for e-invoicing.
It also allows electronic verification of invoices instead of mandatory physical copies.
Q2: What legal authority empowers this amendment?
Answer:
The notification was issued under Section 164 of the CGST Act, 2017, which allows the Central Government to make rules for carrying out the provisions of the Act, based on recommendations of the GST Council.
Q3: What are the main rules amended by Notification No. 72/2020?
Answer:
The key changes were made to:
Rule 46 – Invoice requirements,
Rule 48 – E-invoicing mechanism, and
Rule 138A – Documents and devices to be carried by the person in charge of a conveyance.
Q4: What change was made in Rule 46?
Answer:
A new clause (r) was added requiring:
“A Quick Response (QR) code having embedded Invoice Reference Number (IRN) in it, in case the invoice is issued under sub-rule (4) of rule 48.”
💡 This means that every e-invoice generated through the GST system must have a QR code with its unique IRN embedded.
Q5: What is the significance of the QR code and IRN?
Answer:
The QR code ensures that the invoice details can be digitally verified by scanning, while the IRN is a unique 64-character hash code assigned to each e-invoice.
This helps in:
✅ Preventing invoice duplication
✅ Ensuring faster verification by tax officers
✅ Simplifying GST reconciliation
Q6: What modification was made in Rule 48(4)?
Answer:
A proviso was added stating that:
The Commissioner may, on the recommendation of the GST Council, exempt a person or a class of registered persons from issuing invoices under sub-rule (4) for a specified period, subject to certain conditions.
In short, the Commissioner now has flexibility to provide exemptions from e-invoicing for specific cases.
Q7: How was Rule 138A modified under this notification?
Answer:
Rule 138A(2) was substituted to state that:
If an invoice is issued as per Rule 48(4), the QR code with embedded IRN may be produced electronically for verification by the proper officer in lieu of the physical copy of the invoice.
💡 This move supports paperless GST compliance and speeds up e-way bill verification.
Q8: What is the practical benefit of this amendment for businesses?
Answer:
✅ Paperless verification — eliminates the need to carry printed invoices.
✅ Faster compliance — officers can verify invoices digitally via QR code.
✅ Reduced fraud — ensures authenticity through unique IRN.
✅ Ease of doing business — smoother e-way bill validation and logistics management.
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Q9: What is Rule 48(4) and how is it connected to this notification?
Answer:
Rule 48(4) governs electronic invoicing and mandates certain taxpayers to prepare invoices by uploading details to the Invoice Registration Portal (IRP) to generate an IRN.
This notification strengthens that rule by mandating the QR code with IRN as part of the invoice.
Q10: Who needs to follow these e-invoicing rules?
Answer:
Initially, e-invoicing applied to businesses with an aggregate turnover exceeding ₹500 crore, and later it was gradually extended to smaller taxpayers.
This notification supports that transition by establishing standardized invoice verification rules.
Q11: What does Section 164 of the CGST Act state?
Answer:
Section 164 empowers the Central Government to make rules for implementing the CGST Act, including retrospective effect, provided they are in line with the Act’s provisions.
It ensures that changes like digital verification can be introduced efficiently.
Q12: Can an e-invoice be verified without a physical copy after this amendment?
Answer:
✅ Yes!
Tax officers can verify the invoice using the electronic QR code displayed on mobile devices or laptops.
No need for printed copies during transport or inspection.
Q13: What does this amendment mean for transporters and logistics companies?
Answer:
It reduces the burden of carrying bulky invoice documents.
Instead, they can carry electronic versions with QR codes, which officers can scan instantly to verify authenticity.
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Q14: What penalties can occur for non-compliance?
Answer:
If an e-invoice does not include a valid IRN and QR code, it is treated as invalid under GST law.
Consequences include:
Ineligibility for ITC for buyers,
Monetary penalties under Section 122, and
Possible e-way bill issues during transit.
Q15: Who signed this notification?
Answer:
The notification was signed by Pramod Kumar, Director, Government of India, CBIC, vide F. No. CBEC-20/06/09/2019-GST.
🏁 Conclusion
Notification No. 72/2020 – Central Tax represents a key milestone in India’s move toward a fully digital GST ecosystem.
By linking QR codes with IRNs, it enhances invoice transparency, enables digital verification, and simplifies compliance for businesses and transporters alike.
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Download PDF: Notification No. 72/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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