Generation of QR Code in the e-Invoice

The new e-invoicing system aims to have a standardised way of reporting invoices. 

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Latest Update

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.

24th February 2022
The e-Invoicing system will get extended to those annual aggregate turnover of more than Rs.20 crore up to Rs.50 crore starting from 1st April 2022, vide notification no. 1/2022

30th June 2021
The CBIC has issued a notification seeking to waive the penalty imposed on non-compliance of dynamic QR code provisions for B2C invoices between 1st December 2020 and 30th September 2021.

1st June 2021
CBIC has notified vide Central Tax Notification no.23 dated 1st June 2021 that the e-invoicing system shall not apply to a government department and local authority.

30th March 2021
The CBIC has issued a notification seeking to waive the penalty imposed on non-compliance of dynamic QR code provisions for B2C invoices between 1st December 2020 and 30th June 2021, provided the said person complies with the provisions of the said notification from 1st July 2021.

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 system is 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 extends to businesses with an annual turnover of more than Rs.100 crore in any previous financial years, starting from 2017-18. The government recently extended the e-invoicing applicability to businesses having more than Rs 20 crore turnover w.e.f 1st April 2022.

Thus, all those taxpayers will be 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.

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