The number of taxpayers onboarding the e-Invoicing under GST has seen an upsurge from 1st April 2021.
Many new businesses have started generating e-Invoices on the IRP portal directly or through their ERP systems.
QR Code has become the new face of the e-Invoice generated as it has become a handy feature added to the e-Invoicing system. QR Code has made it possible to authenticate the e-Invoice and make the further transactions and return process transparent and straightforward.
Automated eInvoice software is the need of the hour where bulk invoices are to be uploaded for authentication & IRN generation.
We know that e-Invoicing under GST applies to only the B2B invoices. However, the government has clearly stated that it is mandatory for businesses with a turnover exceeding the 500 Cr mark to print QR codes on their B2C invoices.
This article will discuss the role of B2C invoices and QR codes in e-Invoicing under GST.
B2C Invoices meaning & e-Invoicing under GST
- B2C stands for ‘Business to Consumer
- These transactions involve supplies made to unregistered persons or consumers.
- The end-user cannot claim Input Tax Credits on these B2C invoices.
- In the recently releasedNotification, 14/2020-Central Tax dated. 23-03-2020, the government has mandated the businesses with annual aggregate turnover above INR 500 Cr to display QR codes on their B2C invoices.
Important Notifications & Circulars related to the B2C invoices & QR code
|Notification 14/2020-Central Tax dated 23-03-2020||Businesses with annual aggregate turnover exceeding the mark of INR 500 Cr are mandated to generate dynamic QR codes on their B2C invoices|
|Notification 06/2021-Central Tax dated 30th March 2021||Penalty for non-compliance on QR code on B2C transactions is waived off till 30th June 2021|
|Circular No. 146/02/2021 dated 23rd February 2021||Clarification regarding the applicability of dynamic QR code on the B2C invoices & compliance to the Notification 14/2020|
e-Invoicing under GST: IRN generation for B2C invoices
We know that the B2B invoices are covered under the e-Invoice generation system.
However, it is also essential to understand the role of business transactions like B2C invoices, Exports, etc., in e-Invoicing under GST.
The e-Invoice schema released by the IRP portal has also included B2C transactions in the invoice type section. But it is important to note that IRN generation will NOT be applicable for B2C type invoices.
Thus, the taxpayers should note that they need NOT send their B2C invoices for the e-Invoice generation on the IRP portal.
Also, NIC has made it clear that the requests sent to them for IRN generation for the B2C invoices will be turned down. If such requests are sent multiple times, this particular IRN shall get blocked.
e-Invoicing under GST: QR Code for B2C invoices in GST
- QR Code stands for ‘Quick Response’ Code.
- A QR Code is mandated for businesses with an annual aggregate turnover above INR 500 Cr.
- The government does this compulsion to encourage digital payments in India.
- There are two types of QR codes used in this process.
- Dynamic QR code
- Static QR code
- Dynamic QR Code: This code can be edited easily by the user. It supports many advanced features like password protection, less dense QWR code& device-based redirection.
- Static QR Code: It’s a primary type of QR code. This QR code is static and cannot be edited once generated. Static QR code is denser than the dynamic QR code.
- The government has mandated using the Dynamic QR code to embed in the B2C invoices.
What are the contents of a QR Code in B2C invoices in e-Invoicing under GST?
The QR code to be printed on the B2C invoices is prescribed to have the following details by the government:
- GSTIN number of the Supplier
- UPI ID of the Supplier
- Payee’s bank account number along with the IFSC code
- Invoice number and the invoice generation date
- Total Invoice value
- GST rates are separated in IGST, CGST & SGST, Cess, etc.
Also, a QR code should be:
- Easy to scan for the digital payments
- QR code should be precisely printed on the hard copy of the invoices and the PDF copies of the invoices.
- Easily readable to the QR code scanners.
B2C QR Code does not apply to the following types of transactions
- Export transactions covered under e-Invoicing generation.
- For businesses with annual aggregate turnover below INR 500 Cr (from FY 2017-18 onwards).
- When the service supplier is – Insurance Company, banking company, financial institutions, non-banking financial company, goods transport agency, etc.
Important FAQs on QR code in B2C invoices
- Is it sufficient if only Dynamic QR is printed on prepaid B2C invoices?
- No, it won’t suffice. You are required to provide a cross-reference if Dynamic QR is printed on the invoice.
- What to do if part of the payment is prepaid and the rest is paid after issuing the invoice?
- There is no clear solution to this query. But we can address it with few pointers as stated below:
- Cross-reference for completed and Dynamic QR code with balance amount should be printed on the invoice.
- ‘Invoice value’ is required in the dynamic QR code.
- As there is no specific mention made about the ‘due amount,’ we can print the QR code for the total amount mentioned on the invoice.
- For digital display, is it mandatory to provide cross-reference even if the payment is made using a Dynamic QR code?
- This will be mandatory as it is mentioned in Circular no. 146/02/2021-GST, dated 23rd February 2021
The simplest e-Invoicing software you need!
e-Invoicing has become an indispensable facet of the GST structure.
There is no doubt that e-Invoicing will be soon made mandatory to all types of businesses. The government seems to go down that path. It is evident from the decision to bring down the annual aggregate turnover to INR 5 Cr that the e-Invoicing system will soon accommodate all the small businesses.
However, small businesses are expected to equip themselves with the required infrastructure and eInvoice solution to enter the system of e-Invoicing under GST.
GSTHero’s e-Invoicing solutions are the simplest and equipped with the advanced features you need for a successful e-Invoice generation under the GST structure.
The e-Invoicing APIs enhanced by GSTHero are one of its kinds and allow you to generate e-Invoice right from your ERP system directly. You are not even required to visit the IRP portal even once!
Make the right choice for your business and choose the right software which gives you:
- Simplicity in use
- 24 x 7 technical support
- Data protection with seven-layer security
- GST Suvidha Provider’s authentic service
Stay updated; stay ahead!
Until the next time……
About the Author– GSTHero– Making GST Simple! GSTHero is the best GST filing, e-Way Bill Generation & E Invoicing Software in India. GSTHero is a government authorized GST Suvidha Provider. Both Businesses and Tax Practitioners can file GSTR 1, GSTR 3B, GSTR 9 and GSTR 9C with all supporting reports. 1 Click Auto Reconciliation & report-matching feature helps you in claiming up to 100% ITC and finds your GST Defaulting Suppliers. GSTR2A vs GSTR-3B, GSTR-1 vs GSTR-3B, ‘GSTR-1, GSTR-2A & GSTR-3B’ annual report matching is also provided by GSTHero.
GSTHero ERP Plugins provide 1 Click e-Way Bill & E-Invoice, Generation, Operation & Printing from your own ERP like Tally, SAP, Marg, Busy, Microsoft Dynamics, Oracle & others itself with high data security