DYNAMIC QR CODE FOR B2C TRANSACTION UNDER E-INVOICING
What is E-invoicing?
E-invoicing is an electronic invoicing system under which GSTN electronically authenticates all B2B invoices. A unique number is issued for each invoice uploaded on the Invoice Registration Portal (IRP). The invoice information is transferred in real-time from the IRP to the GST portal and the e-way bill portal. Although e-invoicing applies only to B2B invoices, the law requires certain entities to generate and print a dynamic QR code for B2C invoices.
Let us understand E-Invoicing and B2C Transactions:
All supplies made to unregistered persons or consumers are referred to as B2C transactions. B2C invoices are those invoices where the end-user will not be claiming input tax credit (ITC). As of now, B2C invoices are exempt from e-invoicing. However, a taxpayer is required to generate a dynamic QR code for enabling digital payments on all B2C invoices as per Notification No. 14/2020-Central Tax, as amended by Notification No. 71/2020-Central Tax.
The notifications have directed all taxpayers with an annual turnover of more than Rs.500 crore in any preceding financial year (starting from 2017-18) are compulsorily required to generate QR code on their B2C invoices from 1st December 2020 (initially was from 1st October 2020 but was deferred by the Notification No. 71/2020).
Further, the CGST Notification no. 89/2020 dated 29th November 2020 waived the penalty leviable on non-compliance of this requirement from 1st December 2020 up to 31st March 2021. Any failure to comply from 1st April 2021 shall attract penalty of Rs.25,000 leviable for incorrect invoicing under Section 125 of the CGST Act.
Who need not generate dynamic QR code on B2C invoices?
Exempted suppliers include – insurance company, a banking company or financial institution, a non-banking financial company, a goods transport agency, passenger tickets by transport business, movie tickets by multiplex screens, and non-residents making Online Information Database Access and Retrieval services.
Export of goods or services to unregistered persons do not require dynamic QR code as these are considered as B2B transactions and e-Invoicing shall apply.
How to generate the QR code for B2C invoices and its contents?
Under B2B invoices, QR codes are generated by the IRP and not the taxpayer. However, under B2C invoices, a taxpayer can generate QR code using their own QR code generating machines and algorithms.
A regular B2B QR code must contain the following details:
QR code for B2C invoices
A QR code is a quick response code. It contains coded information about an e-invoice. It is a two-dimensional version of a barcode 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 digitalisation 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.
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