Article explains the term ‘Dynamic Quick Response Code’ Applicability of QR code on B2B invoices (e-invoicing QR code), Applicability of QR code on B2C invoices (dynamic QR code) and Summary of Applicability of the QR code under GST.

QR code provisions apply differently for both B2B transactions and B2C transactions. The present article firstly explains the term ‘Dynamic Quick Response Code’ (i.e., dynamic QR code) and then clarifies the applicability of QR code to both B2B transactions as well as B2C transactions under GST.

Understanding the term ‘Dynamic Quick Response Code’-

Basically, Quick Response Code (i.e., QR code) is a type of two-dimensional bar code. QR code is applied to the items/ invoices for presenting information in the machine-readable format. There are two types of QR code, namely, Static QR code and Dynamic QR code.

With a view to promote digitization as well as digital payment, Dynamic Quick Response Code (i.e., dynamic QR code) is adopted under GST. Some of the benefits of dynamic QR code are highlighted hereunder-

  • Each dynamic QR code is unique.
  • The buyer/ payee is not permitted to change the value/ amount.
  • The amount mentioned/ payable can easily be paid using any UPI app.

Applicability of QR code on B2B invoices (e-invoicing QR code)-

In the case of B2B invoices, the e-invoicing QR code will be generated by Invoice Registration Portal based on the e-invoice details reported/ submitted to the Invoice Registration Portal.

Thus, it can be concluded that, in the case of B2B invoices, the registered person who is required to comply with the e-invoicing provisions will automatically get generated QR code from the Invoice Registration Portal.

Notably, the QR code so generated by the Invoice Registration Portal will consist of the following parameters-

  • GSTIN of the supplier;
  • GSTIN of the recipient;
  • Invoice number;
  • Date of generation of the invoice;
  • Invoice value;
  • HSC code of the main item;
  • Number of the line items;
  • Unique Invoice Reference Number (IRN); and
    • Date of generation of IRN.

It is important to mention here that the supplier is mandatorily required to print the QR code generated by the Invoice Registration Portal on the invoice copy issued to the buyer.

Applicability of QR code on B2C invoices (dynamic QR code)-

Notification no. 14/2020- Central Tax dated 21st March 2020 covers the provisions relating to applicability of Dynamic QR code in case of B2C invoices. The summary of notification is as under-

Particulars Corresponding details
Category of registered persons who are required to issue invoices with QR code in case of B2C transactions (i.e., supply to unregistered persons) Registered persons having an aggregate turnover of more than INR 500 crores in the financial year.
List of persons exempted The following list of persons are exempted from the provisions of QR code

  • An insurer, a banking company or a financial institution,
  • A non-banking financial company,
  • Goods transport agency,
  • A person engaged in passenger transportation, and
  • Services in relation to admission to an exhibition of the cinematograph films on multiplex screens.

Notably, above list of persons is exempted irrespective of their turnover.

Effective date 1st October 2020

Notably, vide notification no. 71/2020- Central Tax dated 30th September 2020, the effective date of applicability of QR code in case of B2C invoice was extended to 1st December 2020.

Synopsis-

Summary of Applicability of the QR code under GST-

Type of transactions Applicability of the QR code
B2B transactions (supplying goods/ services or both by a registered person to another registered person) QR Code is mandatory for all the registered persons to whom e-invoicing provisions are applicable.

Here, the QR code would be generated by the Invoice Registration Portal itself.

B2C transactions (supplying goods/ services or both by a registered person to unregistered person) QR Code is applicable to the registered person having an aggregate turnover of more than INR 500 Crores. It is effective from 1st December 2020.

Author Bio

Qualification: CA in Job / Business
Company: Taxguru Consultancy / Taxguru Edu
Location: Mumbai, Maharashtra, India
Member Since: 27 Feb 2017 | Total Posts: 891
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