E-invoice and QR Code Under GST: 10 Points to Remember
Here are the 10 points that you should remember related to e-invoice and QR code under GST:
1. A new invoicing system has been introduced in the GST taxation system on 1st October 2020. A standardized protocol is enabled to generate and validate invoices electronically.
2. An e-invoice raised by a supplier can be read by software using the QR code. The consumer, too, can integrate the data on their systems using the QR code.
3. The GST Council has implemented e-invoicing in a phased manner for reporting of business-to-business (B2B) and export supplies to the Invoice Registration Portal (IRP).
4. At first the taxpayers with a turnover of over ₹500 Crores in any financial year 2017-18, 2018-19, and 2019-20 need to generate IRN for their B2B and export supplies.
5. The new e-invoicing system will be made mandatory for all taxpayers (excluding the exempted taxpayers) with a turnover of over INR 100 Crores from 1st January 2021. Read more about this notification here.
6. The approved e-invoice schema and template by the GST Council is available on the IRP.
7. Right now there is only one invoice registration portal that is www.einvoice1.gst.gov.in. However, the government has planned to introduce 9 more IRPs in due course for e-invoice generation as per rule 48(4) of CGST. The e-invoicing IRP includes:
(i) www.einvoice2.gst.gov.in
(ii) www.einvoice3.gst.gov.in
(iii) www.einvoice4.gst.gov.in
(iv) www.einvoice5.gst.gov.in
(v) www.einvoice6.gst.gov.in
(vi) www.einvoice7.gst.gov.in
(vii) www.einvoice8.gst.gov.in
(viii) www.einvoice9.gst.gov.in
(ix) www.einvoice10.gst.gov.in
8. The government has deferred the requirement of printing Dynamic QR codes on business to consumer invoices by two months till 1st December 2020 as per Notification No. 71/2020 – Central Tax.
9. From 1st December 2020 any invoices issued by a registered person, whose aggregate turnover in any financial year 2017-18, 2018-19, and 2019-20 exceeds INR 500 Crores, to an unregistered person, contain Dynamic Quick Response (QR) code. In simple words, all the B2C invoices issued by the notified taxpayers to an unregistered person shall contain a dynamic QR code under GST.
Note: On the recommendation of the GST council, the government has given relaxation to the notified taxpayers by giving penalty waiver for non-compliance of provisions of Dynamic QR Code from 1st December 2020 to 31st March 2021 providing that such taxpayer needs to comply with the provision mandatorily from 1st April 2021. Read more about this notification here.
10. Dynamic Quick Response (QR) on invoices available to the recipient through a digital display, shall also be deemed to be having Quick Response (QR) code.
Note: The concept of a Dynamic QR code under GST is completely different from the signed QR code under e-invoicing.
