Learn about mandatory QR codes in GST e-invoicing, their purpose, and generation via the IRP for streamlined invoice verification.
Every GST e-invoice carries a signed QR code generated by the Invoice Registration Portal (IRP). It encodes key details – supplier and buyer GSTIN, invoice number and date, value, main HSN and the IRN – so the invoice can be quickly verified for authenticity. This guide explains what the QR code contains and how to validate it.
The e-invoicing system in India mandates the inclusion of a Quick Response (QR) code for applicable businesses to ensure a standardized method of reporting invoices. This article provides a comprehensive overview of the QR code’s function within the e-invoice framework. On June 9, 2023, the GSTN launched the ‘e-Invoice QR Code Verifier’ app, available on the Google Play Store, to facilitate quick and convenient e-invoice verification on mobile devices. An iOS version is anticipated soon.
The app authenticates information embedded in the QR code, allowing users to compare it with details printed on the e-invoice. Additionally, key updates regarding e-invoicing include the extension of its applicability to taxpayers with an annual turnover exceeding Rs 5 crore, effective August 1, 2023. The GST department also deferred the 7-day time limit for reporting older e-invoices by three months, with a new date yet to be announced. Furthermore, as of May 1, 2023, taxpayers with an annual turnover of Rs 100 crore or more are required to report tax invoices and credit/debit notes to the IRP within seven days of their issuance. Earlier, on October 1, 2022, the e-invoicing system was extended to B2B transactions for businesses with an annual aggregate turnover between Rs 10 crore and Rs 20 crore, following an August 1, 2022, notification.
What is a QR Code?
A Quick Response (QR) code is a two-dimensional barcode used to present machine-readable information. These codes are applied to items to efficiently store and convey data.
Purpose of the QR Code
Within the e-invoicing system, the QR code serves to provide instant access to specific invoice information, eliminating the need for external data retrieval. This functionality addresses several key requirements: * It enhances efficiency in commercial transactions by enabling machines to rapidly and accurately capture invoice data. * It allows indirect tax officers to validate an invoice’s authenticity and its particulars using handheld devices, particularly useful for field operations. * Once the Invoice Registration Portal (IRP) returns an e-invoice with an assigned QR code, the supplier can simply use this code to generate a PDF version of the signed e-invoice.
Information Contained in the QR Code
The QR code is generated based on the following essential parameters: * Supplier’s GSTIN (Goods and Services Tax Identification Number) * Recipient’s GSTIN * Invoice number assigned by the supplier * Date of invoice generation * Total invoice value * Number of distinct line items * HSN (Harmonized System of Nomenclature) Code of the primary item * Unique Invoice Reference Number (IRN) or Hash
Documents to Which the QR Code Applies
Under GST law, e-invoicing became mandatory in phases: initially from October 1, 2020, for taxpayers with an aggregate turnover exceeding Rs 500 crore (in any financial year from 2017-18); then from January 1, 2021, for businesses with over Rs 100 crore turnover; further extended to businesses with over Rs 20 crore turnover from April 1, 2022; and subsequently to those with over Rs 10 crore turnover from October 1, 2022. Most recently, it was mandated for businesses with a turnover exceeding Rs 5 crore, effective August 1, 2023.
Consequently, all these taxpayers must issue invoices under the e-invoicing system for B2B tax invoices, credit notes, and debit notes. E-invoicing also requires printed invoices to have a designated space for QR codes. For exports and Reverse Charge Mechanism (RCM) supplies, where tax invoices are required, the QR code provision also applies.
Applicability of QR Code to B2C GST Invoices
If a supplier’s aggregate turnover in preceding financial years (starting from 2017-18) surpasses Rs 500 crore, they are obligated to display a dynamic QR code on the Business-to-Consumer (B2C) invoices they issue. When a dynamic QR code is provided via a digital display, a cross-reference for any payment made through it must be made available.
How and Where the QR Code is Generated
The process involves uploading the invoice’s JSON data to the Invoice Registration Portal (IRP) to obtain an Invoice Reference Number (IRN). Following the successful generation of the IRN, the IRP digitally signs the JSON data and then affixes the QR code to it.
Frequently Asked Questions
What does a GST e-invoice QR code contain?
Supplier and recipient GSTIN, invoice number and date, invoice value, main HSN code and the IRN.
Who generates the e-invoice QR code?
The Invoice Registration Portal (IRP) generates and digitally signs it when the IRN is issued.
How do I verify an e-invoice QR code?
Scan it with the official verification app to confirm the invoice details and IRN.
Is the QR code mandatory on e-invoices?
Yes, for notified taxpayers the signed QR code from the IRP must appear on the invoice.
