Specifications for B2C QR Code
QR Code on B2C invoice is self-generated by the business and there are no standard specifications prescribed by the Government for this. The purpose of having a B2C QR Code is to facilitate digital payments and the RBI recommendations related to streamlining payments also need to be factored in while deciding the approach to define the QR Code for B2C transactions.
Dynamic QR Code and Static QR Code
A QR Code based on the content included in it can be either static or dynamic.
A dynamic QR code is editable, as opposed to a static QR code which cannot be edited. Dynamic QR codes allow for additional features like scan analytics, password protection, device-based redirection, and access management. Dynamic QR codes also result in a less dense QR code image that is more reliable to scan.
How to generate a QR Code?
Inferring the various notifications and clarifications issued for QR code on B2C transactions, the following is the gist:
- Enable Scan and Pay Currently many stores like D-Mart, Westside, etc have static QR codes at payment counters. The payee needs to scan the code, enter the amount and make payments. However, with dynamic QR codes, details like invoice amount, merchant’s id, merchant’s name, payment details, etc can be stored in the QR code itself. So, when the payee scans the QR Code, he/she will be able to directly make the payment through UPI.
- Adopt Interoperable QR Code
The RBI recommendation is to follow either of UPI or Bharat QR codes as these are inter-operable and standard QR codes. Businesses that have adopted proprietary QR Codes, will need to migrate to either of the standard codes by March 2022. Between the UPI and Bharat QR codes, the entity needs to decide about their approach. While UPI may be quick to implement, it may not support very high-value transactions. Bharat QR Code has the flexibility to include more content, however, the number of banks who have already implemented the option to issue QR Code is less than the banks that have UPI capabilities.
A brief comparative matrix is given below:
UPI based QR Code vs Bharat QR Code
|UPI based QR Code||Bharat QR Code|
|Merchant has to have account in the banks live on Bharat QR code (about 190)||Can be issued by member banks (about 32). Merchant has to have account in the banks live on Bharat QR code (about 28)|
|Includes merchant details, bank account etc.||Includes details of merchant, bank account and also transaction details such as amount.|
|Can be static or dynamic||Can be static or dynamic|
|Preferably used for P2P* or P2M* dynamic Transaction using Virtual Payment Address.||Specifically used for P2M* transaction wherein payment is done via cards|
|Necessary to have a mobile number linked|
Contents of a B2C QR Code
Dynamic QR Code, in terms of GST Notification No. 14/2020-Central Taxis required, to contain the following information:
- Supplier GSTIN number
- Supplier UPI ID
- Payee’s Bank A/C number and IFSC
- Invoice number & invoice date,
- Total Invoice Value
- GST amount along with breakup i.e. CGST, SGST, IGST, CESS, etc.
Further, a dynamic QR Code should be such that it can be scanned to make a digital payment. IRIS is already live with the changes to include these fields in their B2C QR code.
Also, this QR code must be displayed on print and PDF invoices. The size of the printed signed QR code can be 2 X 2 inches. However, it depends on the available size on the invoice. But it should be readable from the QR code scanners.
In addition to the above point, there are four more points that are clarified in the circular. Here are the points:
1.Digitally Displayed Dynamic QR code
A dynamic QR code that the taxpayers are already making available to the recipient through a digital display, usually also includes a payment link. Thus, on scanning the dynamic QR code, the recipient can directly make payments through such payment links. So, in case the taxpayers do not already have such a dynamic QR code, then the payment link can also be included in the self-generated QR code. If the taxpayers are already generating dynamic QR code with payment information and making it available to the recipient through a digital display, such dynamic QR code will be deemed to be QR code in accordance with the notification.
As per this latest circular, they additionally provided one more clarification around this digital displayed QR code. If the taxpayer is providing digitally displayed QR code then on invoice copy as they are not printing QR code hence they need to provide cross-reference of these payments so that invoice shall be deemed to comply with the requirement of Dynamic QR Code
2. Prepaid Invoices
If payment is done before generation of invoice then taxpayer shall provide cross reference of these payments on invoice copy then invoice shall be deemed to comply with the requirement of Dynamic QR Code.
In cases other than pre-paid supply where payment is made after invoice generation then, in that case, it is mandatory to print the dynamic QR code on the invoice copy
3. Electronic mode of payment
If the taxpayer makes available to customers an electronic mode of payment like UPI Collect, UPI Intent, or similar other modes of payment, through mobile applications or computer-based applications, where though Dynamic QR Code is not displayed, but the details of the merchant as well as the transactions are displayed then on invoice if taxpayers provide the cross-reference of these electronic payments then the invoice shall be deemed to comply with the requirement of Dynamic QR Code.
However, if payment is made after invoice generation then it is mandatory to print a dynamic QR code on the invoice copy.
4. Supply through E-commerce operator
As per the notification, it shall apply to each supplier/registered person separately, if such person is liable to issue invoices with Dynamic QR Code for B2C supplies as per the said notification. In case, the supplier is making supply through the e-commerce portal or application, and the said supplier gives cross-references of the payment received in respect of the said supply on the invoice, then such invoices would be deemed to have complied with the requirements of the Dynamic QR Code.
In cases other than pre-paid supply i.e. where payment is made after generation/issuance of the invoice, the supplier shall provide a Dynamic QR Code on the invoice.
Let’s understand it on basis of the flow chart:
B2C Dynamic QR code is not applicable for the below cases:
B2C QR Code is not applicable to:
- Export Transactions – as covered under e-invoicing
- Turnover below 500 Cr rupees in all financial years from 2017-18 onwards
- Where the supplier of taxable service is:
- An insurer or a banking company or a financial institution, including a non-banking financial company
- A goods transport agency supplying services in relation to transportation of goods by road in a goods carriage
- Supplying passenger transportation service
- Supplying services by way of admission to an exhibition of cinematograph in films in multiplex screens
- OIDAR supplies made by any registered person, who has obtained registration under section 14 of the IGST Act 2017, to an unregistered person.
Notifications and Clarifications around B2C QR Code
|Authority /Law||Central Govt, CGST Act||NIC, Developed E-invoice system||Central Govt, CGST Act||RBI|
|Notification /Reference Document||Notification No. 14/2020||FAQ clarifying queries on B2C QR code||Notification No. 71/2020||Notification RBI/2020-21/59|
|Scope||•Turnover > ₹ 500 cr in previous FY||•QR code is self-generated. Not by IRN system||•Turnover > ₹ 500 cr in any of previous FY from 2017||•Streamlining QR Code infrastructure|
|•Dynamic QR code on their B2C invoices||•Many business have static QR code displayed in their outlets. IN static QR code, customer has to key in amount||•Effective 1st Oct 2020 is changed to 1st Dec 2020||•Either of the two interoperable QR codes to be followed – UPI QR and Bharat QR|
|•Purpose is to enable digital payments||•Dynamic will make the payments easier as customer just needs to scan, review details and pay.||•Proprietary QR codes shall shift to one or more interoperable QR codes by 31-Mar-2022|