Generation of QR Code in the e-Invoice

QR code is mandatory in the e-invoice generated by applicable businesses. The e-invoicing system aims to have a standardised way of reporting invoices. This article explains all about use of QR code in e-invoice.

On 9th June 2023, the GSTN issued an advisory announcing the launch of the ‘e-Invoice QR Code Verifier’ app for quick and convenient e-invoice verification. Users can download the app from the Google Play store and undertake QR code verification on their mobile devices. The iOS version will be released soon.

Latest Update

9th June 2023
The GSTN has launched an ‘e-Invoice QR Code Verifier’ app on Google Play Store to enable users to quickly and conveniently verify e-invoices. The app will authenticate the information embedded in the QR code, which can be compared with the information printed on the e-invoice. The iOS version will be available shortly.

10th May 2023
CBIC extended e-invoicing to taxpayers having more than Rs 5 crore turnover (in any financial year from 2017-18) w.e.f 1st August 2023.

06th May 2023
The GST department has deferred the time limit of 7 days to report the old e-invoices on the e-invoice IRP portals by three months. Further, the department is yet to announce the new implementation date.

13th April 2023
The GSTN released an advisory on 12th and 13th April 2023 stating that taxpayers with an annual turnover of Rs.100 crore and more must report tax invoices and credit-debit notes to the IRP within 7 days from the date of issue of the invoice/CDN from 1st May 2023.

1st August 2022 
The e-Invoicing system for B2B transactions has now been extended to those with an annual aggregate turnover of more than Rs.10 crore up to Rs.20 crore starting from 1st October 2022, vide notification no. 17/2022. 

What is QR code?

Quick Response Code is abbreviated as QR code. It is a two-dimensional barcode applied to items for presenting information in its machine-readable format.

Purpose of QR code

In the e-invoicing system, the QR Code will be used to provide information about a particular invoice in a quick manner, without the need to retrieve such information from an external source, say, the internet. This would serve the following needs:

• It would help in increasing the efficiency of conducting commerce by using machines to capture the data contained in invoices for quick and accurate input.
• It would help indirect tax officers to determine whether a particular invoice is valid and contains all the relevant particulars with the use of handheld devices. This is especially useful when they are out on the field.
• Once the Invoice Registration Portal (IRP) returns the e-invoice to the supplier after assigning the QR Code, the supplier only needs to use the QR Code to generate a PDF of the signed e-invoice.

Information contained within the QR code

The QR Code will be created based on the following parameters:

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

Which are the documents to which QR code applies?

Under the GST law, the e-invoicing was compulsory from 1st October 2020 for those taxpayers having an aggregate turnover of more than Rs.500 crore in any previous financial years, starting from 2017-18. 

Further from 1st January 2021, this extended to businesses with an annual turnover of more than Rs.100 crore in any previous financial years, starting from 2017-18. In the next phase, the government extended the e-invoicing applicability to businesses having more than Rs 20 crore turnover w.e.f 1st April 2022.

Later, it extended the e-invoicing to businesses with more than Rs 10 crore turnover from 1st October 2022. Recently, department mandated e-invoicing for businesses having turnover of more than Rs 5 crore w.e.f 1st August 2023.

Thus, all those taxpayers are required to issue invoices under the e-invoicing system in respect of B2B tax invoices, credit notes and debit notes.

The e-invoicing system also requires invoices printed to have a space for QR codes. In the case of exports and RCM supplies, since tax invoices are required to be issued, the QR code shall also be applicable.

Applicability of QR code to B2C GST invoice

Where the aggregate turnover of a supplier in the preceding financial years, starting from 2017-18, exceeds Rs.500 crore, he shall be required to have a dynamic QR code displayed on B2C invoices raised by him. Where the supplier makes a dynamic QR code available through a digital display, the cross-reference of the payment made through it should be made available.

How and where is the QR code generated?

The JSON of the invoice is required to be uploaded onto the Invoice Registration Portal (IRP) for generating an Invoice Reference Number (IRN). After the successful generation of IRN, the IRP allows the affixing of digital signature and QR code to the JSON.