In this post, we will see about the QR Code and QR Code generation in E-invoicing.
Central Board of Indirect Taxes and Customs (CBIC) issued a notification on March 30, 2021, which extends the applicability of the Dynamic QR Code on B2C invoices from April 1, 2021, to July 1, 2021.
There will be no penalty under Section 125 for not implementing Dynamic QR Code till June 30, 2021.
We will cover the following topics in this post:
- What is QR Code?
- Advantages of QR Code
- Parameters in QR Code
- Applicability of QR Code in B2C invoice
- QR Code generation in E-Invoice
- QR Code Verification
What is QR Code?
Quick Response Code or QR code. It is a two-dimensional barcode given to items for presenting information in a machine-readable format. The QR Code in e-invoicing is in Base64 format.
The 2 different QR Code concepts in e-Invoicing are:
- QR Code for B2B E-Invoice with invoice details.
- Payment QR Code for B2C Invoice.
Advantages of QR Code
QR Code provides all information regarding a particular B2B invoice without searching for information from an external source.
The advantages of using QR Codes in e-invoicing are:
- Increase trade efficiency by using machines to capture the invoice data for quick and accurate input.
- To know if an invoice is valid and contains all important information using a handheld device.
- After IRP sends the e-invoice to the supplier with the QR Code, he/she can use it to generate a PDF of the e-invoice.
Parameters in QR Code
The QR Code will contain the following parameters:
- Supplier’s GSTIN
- Recipient‘s GSTIN
- Invoice number given by the supplier
- Date of the invoice generation
- Invoice value
- Number of line items
- HSN Code of the main item
- Unique IRN
Taxpayers and tax officers can easily verify the signed QR Code by validating whether the e-invoice has been reported and accepted by the IRP.
For every registered e-invoice will have both the IRN and the Digital Signature of IRP as proof. If any error in the signed JSON file then it will be invalid and the digital signature will fail.
Applicability of QR Code in B2C Invoice
If a supplier’s aggregate turnover in the previous FYs from 2017-18 exceeds Rs.500 crores, then he/she needs to have a QR Code on B2C invoices. The supplier makes the QR Code available through a digital display and the cross-reference of the payment made through it is also made available.
QR Code generation in E-Invoice
The JSON file of the invoice is uploaded to the Invoice Registration Portal (IRP) to generate an Invoice Reference Number (IRN). However, after the generation of IRN, the IRP assigns a specific digital signature and QR Code to the JSON file.
- QR Code is printed/shared is in the top right corner of the invoice.
- You can not print the QR Code on a separate paper.
- QR Code is in JWT form. However, you can not decode the signed QR Code before printing. If it is decoded, the IRP signature will be lost, and it will be unverifiable.
QR Code Verification
The tax officers/taxpayers/suppliers/buyers can verify and validate the e-invoice details using the QR Code. They can also check if the invoice is reported and accepted by IRP. You can also verify the QR Code using the offline app which makes e-invoicing much easier than before.
There are two ways to verify an e-invoice on the QR Code offline app:
- Scanning the QR Code
- Uploading the JSON file
With that, you have come to the end of this post. Share your queries with us in the comment section below.
Refer to our blogs:
- E-Invoice generation through Saral GST
- Import of E-Invoicing Details to Saral GST
- Excel Integration in Saral GST
- Database Integration in Saral GST
- E-invoicing under GST – A brief introduction
- E-Invoicing under GST [Format & Mandatory Fields]
- E-invoicing system vs Existing Invoicing system
- E-invoicing FAQs Part-1: Introduction to E-invoicing