Generation of QR Code for an E-Invoice

The introduction of e-Invoicing has brought about a major shift in the way businesses generate and maintain invoices. To further simplify the process, the government has introduced the concept of QR codes for e-Invoices. QR codes are two-dimensional barcodes that can be scanned using a mobile device to provide information about the invoice.

The QR code contains all the essential details of an e-Invoice, including the GSTIN, invoice number, date of issue, and total amount. The introduction of QR codes aims to increase transparency, reduce errors and fraud, and enhance the overall efficiency of the invoicing process. In this article, we will delve deeper into the concept of QR codes for e-Invoices and discuss how they work.

What is a QR Code?

A QR code is a special barcode that can store a lot of information in a small space. It can be used on products or invoices to make it easier for machines to read and process the information. There are two types of QR codes: Static and Dynamic. Dynamic QR codes are used in GST to encourage digital payments and digitization. 

They have some advantages over static QR codes, such as the ability to update information, track usage, and provide more information to customers. Overall, dynamic QR codes are a helpful tool for businesses looking to streamline their invoicing and payment processes:

• Dynamic QR codes are all distinctive. 
• The buyer or payee may not alter the value or amount. 
• Any UPI app can be used to quickly and conveniently pay the amount indicated or due.

Purpose of a QR Code

The QR Code will be utilised in the e-invoicing system to quickly offer details about a specific invoice, eliminating the need to get this information from an outside source, such as the internet. The following requirements would be satisfied:

• Using machines to extract the data from invoices for quick and precise input will improve the efficiency of conducting business.
• The use of mobile gadgets would assist indirect tax officials in determining whether a specific invoice is genuine and contains all necessary information. They may use this a lot more while they are on the field.
• The supplier needs to utilise the QR Code to create a PDF of the signed e-invoice after the Invoice Registration Portal (IRP) provides the e-invoice to them after assigning the QR Code.

What Does a QR Code Entail?

The QR Code contains the following parameters:

• GSTIN of the supplier
• GSTIN of the recipient
• Invoice number given by the supplier
• Date of the generation of invoice
• Invoice value
• Number of line items
• HSN Code of the main item
• Unique Invoice Reference Number/Hash

Applicability of QR Code on B2B Invoices

When it comes to business-to-business (B2B) invoices, the QR code for e-invoicing will be generated by the invoice registration portal using the details of the e-invoice that were reported or submitted to the portal. This means that the person who is registered to follow the e-invoicing rules will automatically receive the QR code from the Invoice Registration Portal. 

This makes it easier for businesses to comply with the e-invoicing regulations, and ensures that the QR code contains all the necessary information for the invoice. Overall, the use of QR codes in e-invoicing is a positive step towards digitization and simplifying the invoicing process.

Applicability of QR Code on B2C Invoices

If a supplier’s cumulative revenue in the three financial years before 2017–18 exceeded Rs. 500 crores, they must show a dynamic QR code on all B2C invoices they generate. The cross-reference of the payment made by a dynamic QR code should be made available when the supplier makes it available via a digital display.

Documents to which QR Code applies

According to the GST law, the e-invoicing system will be required starting in 2017–18 for taxpayers with an aggregate turnover of more than Rs. 500 crores in any prior fiscal year.

Businesses with annual revenue of more than Rs. 100 crore in any prior fiscal year are now included as of January 1, 2021, beginning with the 2017–18 fiscal year. The government has expanded the use of electronic invoicing to companies with annual revenue of more than Rs 20 crore, effective April 1, 2022.

As a result, all of those taxpayers must use the e-invoicing system to send credit notes, debit notes, and B2B tax invoices.

The e-invoicing system also mandates that printed invoices feature a QR code field. Since tax invoices must be made for exports and RCM supply, the QR code must also be used in these situations.

Watch the video below to learn how to implement QR Codes in BUSY

Implementing QR Code in BUSY

Generation of QR Code

If you are using BUSY e-invoice software to generate e-invoices automatically, the QR code can also be automatically added to e-invoices at the time of generation. To generate a QR Code through the Invoice Registration Portal (IRP), the JSON file of the invoice must be uploaded to the IRP. The IRP permits the addition of a digital signature and a QR code to the JSON after the successful production of the IRN.

Conclusion

The use of QR codes in e-invoicing is another significant step towards digitisation and streamlining the invoicing process. The QR code provides a quick and efficient way to access all the necessary information about an invoice, making it easier for businesses to comply with e-invoicing regulations.

With dynamic QR codes, businesses can update information and track usage, providing more information to customers and improving the overall invoicing experience. While certain requirements must be met to use QR codes in e-invoicing, the benefits of this technology are clear. As such, the use of QR codes in e-invoicing is likely to become more widespread in the years to come.