Published on:
December 26, 2022
Pranjal Gupta

E-invoicing and B2C transactions

E-invoicing is an electronic invoicing framework under which GSTN electronically confirms all B2B invoices. An extraordinary number is given for each invoice transferred on the Invoice Registration Portal (IRP). The invoice data is moved continuously from the IRP to the GST portal and the e-way bill portal. In spite of the fact that e-invoicing applies just to B2B invoices. The law requires specific substances to create and print a powerful QR code for B2C invoices. Let's talk about E-invoicing and B2C transactions.


All provisions made to unregistered people or purchasers are alluded to as B2C transactions. B2C invoices are those invoices where the end client won't guarantee input tax reduction (ITC). At this point, B2C invoices are absolved from e-invoicing. Be that as it may, a taxpayer is expected to produce a powerful QR code for empowering computerized installments on all B2C invoices according to Notification No. 14/2020-Central Tax, as amended by Notification No. 71/2020-Central Tax.

The notifications have coordinated all taxpayers with a yearly turnover of more than Rs.500 crore in any previous monetary year (beginning from 2017-18) who are mandatorily expected to create QR codes on their B2C invoices from 1st December 2020 (at first was from 1st October 2020, however, was conceded by the Notification No. 71/2020).

Further, the CGST Notification no. 89/2020 dated 29th November 2020 waived the penalty leviable on rebelliousness of this prerequisite from  1st December 2020 up to 31st March 2021. Any inability to consent from 1st April 2021  will draw in a fine of Rs.25,000 leviable for erroneous invoicing under Segment 125 of the CGST Act.

QR code for B2C invoices

A QR code is a quick response code. It contains coded data about an e-invoice. It is a two-layered rendition of a standardized tag and can be examined from any cell phone. B2C QR code must be self-created by the taxpayer. For B2C invoices, IRN generation isn't needed. Assuming a B2C invoice is shipped off IRP, it will be consequently dismissed, and in the event that sent on various occasions, the IRN generation for that taxpayer can be blocked. Hence, the main motto of generating QR codes for B2C e-invoices is to advance the digitalization of payments utilizing any UPI.

Dynamic QR code - 

A powerful QR code is editable and permits extra elements, for example, scan analytics, password protection, gadget-based redirection, and access to the executives. It gives a less dense QR code image, which is more trustworthy to examine.

Who does not need to generate dynamic QR codes on B2C invoices?

Excluded providers incorporate - an insurance agency, a financial organization or monetary foundation, a non-banking monetary organization, a merchandise transport office, traveler tickets by transport business, film tickets by multiplex screens, and non-residents making Online Information Database Access and Retrieval services.

Export of goods or services to unregistered people doesn't need dynamic QR codes as these are viewed as B2B exchanges and e-Invoicing will apply.

How to create the QR code for B2C invoices and their contents?

Under B2B invoices, QR codes are produced by the IRP and not the taxpayer. Nonetheless, under B2C invoices, a taxpayer can produce a QR code utilizing their own QR code-creating machines and calculations.

A normal B2B QR code should contain the accompanying subtleties:

1. GSTIN of the provider

2. Provider UPI ID

3. Invoice number, given by the provider

4. Date of the generation of invoice

5. Financial balance subtleties of the payee and IFSC

6. CGST, SGST, IGST, Cess, if any

7. The scanning of the unique QR code ought to permit the computerized installment by the client.

The same subtleties are expected for B2C QR codes also, with the exception of:

1. GSTIN of the beneficiary

2. As the beneficiary is an unregistered individual, rather than referencing his GSTIN, a taxpayer can specify his name.

3. A taxpayer should incorporate an installment reference connect with the goal that the beneficiary is diverted to the installment reference interface.

4. Execution of QR codes on B2C invoices will empower the public authority to get hold of B2C transactions. It advances the digitalization of payments. One can make payments involving UPI in a single go. One need not enter the amount, enter the UPI PIN/password and the payment will be made according to the amount referenced on the e-invoice.


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