Avalara > Blog > Goods and Services Tax > Everything you need to know about Dynamic QR code under B2C eInvoicing

Everything you need to know about Dynamic QR code under B2C eInvoicing

  • May 7, 2021 | Manjula Muthukrishnan

  • Dynamic QR codes are being implemented to encourage digital payments and not for IRN generation.
  • A dynamic QR code under B2C eInvoicing must contain all information relevant to that invoice 

Generation & printing of Dynamic QR code under the Goods and Services Tax for business to consumer transactions may have been deferred to the end of June 2021 but taxpayers must consider it an opportunity to understand what is it all about.

Here’s what you need to know about dynamic QR code generation :

Dynamic QR code

Since eInvoicing might take some time to be implemented, the Central Board for Indirect Taxes and Customs had directed that businesses with an annual turnover exceeding ₹500 crore generate and incorporate a dynamic quick response or QR code for enabling digital payments on B2C invoices. 

This dynamic quick response code is required to contain information relevant to the eInvoice. This QR code can be scanned and accessed from any mobile device. Since B2C eInvoicing doesn’t require an invoice reference number unlike B2B eInvoicing, the presence of a dynamic QR code is done to encourage digital payments in the country.

What’s in the QR code?

Similar to B2B eInvoicing, dynamic QR codes are likely to contain all details that will be relevant for inspection by tax authorities at various tax revenue checkpoints. These are likely to include the following -

  • GSTIN of the supplier
  • Supplier UPI ID
  • Invoice number, given by the supplier
  • Date of the generation of invoice
  • Bank account details of the payee
  • IFSC code
  • Break up of CGST, SGST, IGST, Cess

However, a dynamic QR code for B2C transactions is also expected to include two other elements.

  • GSTIN of the recipient
  • Payment reference link to facilitate easy digital payment

Like B2B eInvoicing, generation of a dynamic QR code will not be required for B2C transactions or some exempt business categories like insurance, transport, banking and non banking.

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Manjula Muthukrishnan
Avalara Author Manjula Muthukrishnan
Manjula is the Managing Director of India operations at Avalara. Her role involves overseeing strategic operations in India with a special focus on strengthening the company's end to-end tax automation offerings in the market by enabling Indian customers navigate the complexities of the local indirect tax system - Goods and Services Tax. Prior to joining Avalara, she served leadership roles at renowned organizations like Infosys, HSBC and Socion Advisors. Manjula has been recognized by various internal and external forums for her contributions in the area of Corporate Social Responsibility.

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