According to SingularityU, the amount of change between 2016 and 2022 is greater than the change between 1900 and 2000. To keep up with this change, businesses are constantly seeking innovative ways to enhance efficiency and streamline operations.
The introduction of e-invoicing has revolutionized the way invoices are generated, processed, and managed. One crucial aspect of e-invoicing is the implementation of QR codes, which serve as a powerful tool for quick and convenient invoice verification. In this blog post, we will delve into the world of QR codes in e-invoicing and explore their purpose, the information contained within them, and their applicability.
QR code is short form for Quick Response Code, is a two-dimensional barcode that contains information in a machine-readable format. It can be scanned and decoded by smartphones and other devices equipped with QR code readers
The primary purpose of QR codes in the e-invoicing system is to provide quick access to information about a particular invoice without the need for external sources, such as the internet. The utilization of QR codes in e-invoicing serves multiple needs, including:
Increased Efficiency: QR codes enable machines to capture invoice data rapidly and accurately, facilitating seamless commerce transactions.
Field Verification: Indirect tax officers can use handheld devices to validate the authenticity of an invoice and ensure it contains all the necessary details, even when they are on the field.
PDF Generation: Once the Invoice Registration Portal (IRP) assigns a QR code to the e-invoice and returns it to the supplier, the QR code can be used to generate a PDF version of the signed e-invoice.
The QR code generated for an e-invoice includes the following parameters:
1. GSTIN of the supplier
2. GSTIN of the recipient
3. Invoice number provided by the supplier
4. Date of invoice generation
5. Invoice value
6. Number of line items
7. HSN Code of the main item
8. Unique Invoice Reference Number/Hash
Under GST law, the implementation of e-invoicing has been made mandatory for businesses based on their annual turnover. Initially, it was compulsory for businesses with an aggregate turnover of more than Rs. 500 crore starting from 2017-18. However, the threshold has gradually decreased over time, with the latest extension requiring businesses with a turnover of more than Rs. 5 crore to adopt e-invoicing from 1st August 2023.
The requirement for QR codes applies to various documents, including B2B tax invoices, credit notes, debit notes, exports, and reverse charge mechanism (RCM) supplies. Additionally, suppliers with an aggregate turnover exceeding Rs. 500 crore are also required to display a dynamic QR code on B2C invoices.
To generate a QR code for an e-invoice, the JSON data of the invoice needs to be uploaded to the Invoice Registration Portal (IRP). The IRP assigns an Invoice Reference Number (IRN) upon successful generation, after which the digital signature and QR code are affixed to the JSON.
The introduction of QR codes in e-invoicing has significantly enhanced the efficiency and accuracy of invoice processing for businesses. By providing quick access to vital invoice information, QR codes simplify the verification process for tax officers and enable seamless commerce transactions. As the implementation of e-invoicing continues to expand, the utilization of QR codes will continue to play a pivotal role in establishing a standardized and efficient invoicing system. Utilizing Swipe as a GST Suvidha Provider (GSP) on the e-invoice portal can further simplify invoicing processes, reduce errors, and save time.