E-Invoicing and QR Code for B2C Invoices under GST

E-Invoicing and QR Code for B2C Invoices under GST

Category : | Author :MasterGST

What is e-invoice?

An electronic invoice (e-invoice) contains data from the supplier in a structured format that the buyer’s financial system can automatically recognize, without requiring manual data input from the administrator. A digital invoice is an invoice that can be viewed and processed digitally.
Under Goods and Services Tax (GST), companies with a turnover of over Rs 500 crore will have to generate e-invoice for B2B (business-to-business) transactions from October 1.

QR Code for b2c invoices:

As per Notification No.14/2020- Central Tax, given on March 21st, 2020, e-Invoicing does not apply to B2C invoices, however, it mandates taxpayers to generate dynamic QR Codes for their B2C invoices, mandatory.

If you are a business & have an annual aggregate turnover of over Rs. 500 Crores then you are required to generate QR Codes for the invoices made for unregistered recipients.

what is QR code?

A QR code is a quick response code. It contains coded information about an e-invoice. It is a two-dimensional version of a bar code and can be scanned from any mobile device. B2C QR code has to be self-generated by the taxpayer. For B2C invoices, IRN generation is not required. If a B2C invoice is sent to IRP, it will be automatically rejected, and if sent multiple times, then the IRN generation for that taxpayer can be blocked. Thus, the main motto of generating QR codes for B2C e-invoices is to promote digitization of payments using any UPI.

Dynamic QR code – A dynamic QR code is editable and allows additional features such as scan analytics, password protection, device-based redirection and access management. It provides a less dense QR code image, which is more reliable to scan.

How to generate the QR code for B2C invoices? what are the Specifications for B2C QR Code?

The Government has not specified any particular detail or method to generate B2C QR Codes, so taxpayers can generate their own QR Codes using their QR code generating machines & algorithms.

A regular B2B QR code must contain the following details:

    • GSTIN of the supplier
    • GSTIN of the recipient
    • Invoice number, given by the supplier
    • Date of the generation of invoice
    • Invoice value
    • The number of line items
    • HSN Code of the main item
    • Unique Invoice Reference Number/Hash

QR Code must display the details above mentioned when it’s scanned.

Same details are required for B2C QR codes as well, except:

  • GSTIN of the recipient – As the recipient is an unregistered person, instead of mentioning his GSTIN, a taxpayer can mention his name.
  • A taxpayer must include a payment reference link so that the recipient is redirected to the payment reference link.

Implementation of QR code on B2C invoices will enable the government to get hold over B2C transactions. Also, it promotes the digitization of payments. One can make payments using UPI in a single go. One need not enter the amount, enter the UPI PIN/password and the payment will be made as per the amount mentioned on the e-invoice.