Dynamic QR code for B2C Transactions
- B2C invoices are those invoices where the end-users do not claim input tax credit (ITC).
- As of now, B2C invoices are exempted from e-invoicing, but a taxpayer is still required to generate QR code for all B2C invoices as per Notification No. 14/2020-Central Tax (please click here to download )
- 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 December 1, 2020.
- QR code is different than 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.
- Dynamic QR code has to be self-generated by the taxpayer. For B2C invoices, IRN generation is not required. The main objective of generating QR codes for B2C e-invoices is to promote digitalisation of payments using any UPI.
- Dynamic QR code can be printed on the invoice or displayed on Point of Sale (POS). Purpose of Dynamic QR code is to enable and encourage digital payments where buyer can scan the dynamic QR code and make payment from mobile wallet directly. Today, many retailers have static QR code at the payment counter, which is scanned by the buyer, but the buyer has to enter the amount to be paid to the retailer in the mobile payment App. The dynamic QR code, on the other hand, will have the payment details and thus 'scan and pay' in one go is possible.
- The CBIC issued a notification seeking to waive the penalty imposed on non-compliance of dynamic QR code provisions for B2C invoices between December 1, 2020 and March 31, 2021, provided the eligible registered person comply with these provisions from April 1, 2021 Please click here to download