According to SingularityU, the amount of change between 2016 and 2022 is greater than the amount of change between 1900 and 2000. To keep up with this change, businesses are constantly looking for new ways to improve efficiency and streamline operations.
The adoption of e-invoicing has transformed the way invoices are generated, processed, and managed. The use of QR codes, which serve as a powerful tool for quick and convenient invoice verification, is an important aspect of e-invoicing. In this blog post, we will delve into the world of QR codes in e-invoicing and investigate their purpose, the information they contain, and their applicability.
What is a QR Code?
The QR code (Quick Response Code) is a two-dimensional barcode that contains information in a machine-readable format. Smartphones and other devices with QR code readers can scan and decode it.
Purpose of QR Codes in e-Invoicing:
The primary function of QR codes in the e-invoicing system is to provide quick access to information about a specific invoice without requiring the use of external sources such as the internet. The use of QR codes in e-invoicing serves several purposes, including:
Increased Efficiency: QR codes allow machines to quickly and accurately capture invoice data, facilitating seamless commerce transactions.
Field Verification: Even when in the field, indirect tax officers can use handheld devices to validate the authenticity of an invoice and ensure it contains all of the necessary details.
PDF Generation: The QR code assigned to the e-invoice by the Invoice Registration Portal (IRP) and returned to the supplier can be used to generate a PDF version of the signed e-invoice.
Information Contained within QR Codes:
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
Applicability of QR Codes:
The implementation of e-invoicing has been made mandatory for businesses based on their annual turnover under the GST law. Starting in 2017–18, it was initially mandatory for businesses with an aggregate turnover of more than Rs. 500 crore. However, the threshold has gradually been reduced over time, with the most recent extension requiring businesses with a turnover of more than Rs. 5 crore to implement e-invoicing by August 1st, 2023.
QR codes are required for a variety of documents, including B2B tax invoices, credit notes, debit notes, exports, and reverse charge mechanism (RCM) supplies. Additionally, suppliers with a combined annual revenue of more than Rs. 500 crore are required to include a dynamic QR code on B2C invoices.
QR Code Generation Process:
To generate a QR code for an e-invoice, the invoice’s JSON data must be uploaded to the Invoice Registration Portal (IRP). After successful generation, the IRP assigns an Invoice Reference Number (IRN), and the digital signature and QR code are appended to the JSON.
Conclusion:
The use of QR codes in e-invoicing has significantly improved the efficiency and accuracy of invoice processing for businesses. QR codes streamline the verification process for tax officers and enable seamless commerce transactions by providing quick access to vital invoice information. As e-invoicing adoption grows, the use of QR codes will become increasingly important in establishing a standardized and efficient invoicing system. Using Swipe as a GST Suvidha Provider (GSP) on the e-invoice portal can help to simplify invoicing processes, reduce errors, and save time.
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