Update: New e-Invoice rule for businesses whose turnover is more then ₹10 crore.

From 1st April 2025, all business in India whose Aggregate Annual Turnover exceeds more than ₹10 crore will have to report e-invoices within 30-days of creation. Before this was for businesses having Aggregate Annual Turnover more than ₹100 crore now lowered to ₹10 crore. This will ensure the timely GST payments and regulate the reporting of tax invoices.

E-Invoicing for B2C transactions

Introduction

E-invoicing is a method of verifying business-to-business (B2B) invoices electronically by the Goods and Services Tax Network (GSTN). The Invoice Registration Portal (IRP) assigns unique numbers and QR codes to every B2B invoice that are then sent to GST portal as well as e-way bill portal in real-time. Nevertheless, some firms produce payment QR codes and invoices for B2C transactions even though they involve B2B.

What do you understand by B2B and B2C in E-Invoicing?

Business-to-Business (B2B) takes place between two businesses. Any transaction where the customer you are invoicing for is a GST registered customer/entity, who will be claiming input tax credit(ITC), it is considered as a B2B transaction. However, B2C transactions refer to trade between companies and consumers where the end user isn’t enrolled in the GST portal nor he will claim ITC on his purchases.

Is e-Invoicing necessary for B2B transactions?

Yes, according to CBIC notification on 6th phase of e-invoice. From 2017-18 onwards in any financial year, taxpayers should issue electronic invoices if their turnover exceeds INR 5 crore.

Can e-Invoices be generated for B2C transactions

Firstly, e-Invoices cannot be created for B2C transactions because these transactions are sales to regular consumers for which no tax credit is claimed, but few businesses create invoices with dynamic QR codes for B2C transactions to collect payments digitally.

QR code for B2B and B2C e-Invoices

Generally, A QR code is a quick response code that contains coded information about an e-invoice. It is a two-dimensional version of a barcode and can be scanned from any mobile device.

In B2B transaction e-invoices, this QR code is generated by the IRN portal, and when scanned by any mobile device, it provides real time data on the e-Invoice and can be used to track the specific transaction by tax authorities and the government.

But in the case of B2C transactions, no QR code is generated by the IRN portal. These QR codes are self generated by the taxpayers. Which can be used only for payment purposes. If a B2C invoice is sent to IRP, it will be automatically rejected, and if sent multiple times, then the IRN generation for the taxpayer can be blocked.