Dynamic QR Code on B2C Invoices: Who Needs It Above ₹500 Crore and What It Must Contain
A registered business whose aggregate turnover exceeded ₹500 crore in any financial year from 2017-18 must show a dynamic QR code on every tax invoice to an unregistered buyer. The code must let the customer pay by UPI and carry the GSTIN, UPI ID, invoice number, date, value and GST break-up. Banks, insurers, GTAs, passenger transport and multiplexes are exempt.
Large retailers, consumer brands and D2C sellers issue lakhs of invoices to walk-in or online customers. If the group has ever crossed ₹500 crore, each of those invoices needs a scannable payment code with GST data in it. This post sets out who is covered in 2026, what the code must contain, and the CBIC clarifications that make it workable at a billing counter.
Who must comply
The requirement comes from Notification 14/2020-Central Tax dated 21 March 2020, which added the dynamic QR condition to Rule 46. It has applied since 1 December 2020, with penalties waived up to 30 September 2021.
It applies when all of these are true:
- ✓you are a registered person;
- ✓your aggregate turnover exceeded ₹500 crore in any financial year from 2017-18 onwards; and
- ✓the invoice is a tax invoice to an unregistered person (B2C).
Aggregate turnover is calculated on the PAN across all states. Once you cross ₹500 crore in any year since 2017-18, the rule keeps applying even if turnover later falls. As of October 2026 we found no notification changing the threshold.
Invoices to persons holding a UIN (embassies, UN bodies) count as B2C and need the code, because a UIN holder is not a "registered person" (CBIC Circular 156/12/2021-GST).
Who is exempt
| Supplier or supply | Dynamic QR needed? |
|---|---|
| Insurers, banking companies, financial institutions including NBFCs | No |
| Goods transport agency carrying goods by road | No |
| Passenger transport services | No |
| Admission to cinema in multiplex screens | No |
| OIDAR services to unregistered persons in India | No |
| Exports | No (covered by e-invoicing as B2B) |
| Services to a recipient outside India, place of supply in India, paid in foreign exchange | No |
| B2B invoices | No (e-invoice QR applies instead) |
Do not confuse the two QR codes. The e-invoice QR is generated by the Invoice Registration Portal for B2B invoices and carries the IRN. The dynamic QR on B2C invoices is a payment code that the customer can scan to pay.
What the code must contain
The QR must be scannable for payment and should carry:
- supplier GSTIN;
- supplier UPI ID;
- payee's bank account number and IFSC;
- invoice number;
- invoice date;
- total invoice value; and
- GST amount with the CGST, SGST, IGST and cess break-up.
Circular 156/12/2021-GST eased two of these. Since a UPI ID is already linked to a bank account, the account number and IFSC can be left out. And if a marketplace or a payment aggregator collects on your behalf, its UPI ID can be used instead of yours.
The shortcuts CBIC allowed
The circulars accept that a till or a website cannot always print the invoice before payment. These cases are treated as compliant:
| Situation | What is accepted |
|---|---|
| Customer pays first and the invoice number is generated afterwards (POS counters) | QR on the payment screen can carry a unique order ID or sales reference instead of the invoice number, if it links to the invoice and the invoice cross-refers it |
| Part of the bill already paid by advance, voucher or coupon | QR shows only the balance payable; the invoice shows the full value, the adjustment and the balance |
| Customer pays by card, net banking, cash or UPI collect instead of scanning | Invoice is compliant if it records the payment reference (transaction ID, date, time, amount, mode; for cash, amount and date) |
| Prepaid online order | Cross-reference of the payment on the invoice is enough |
If payment is still due after the invoice is issued, the dynamic QR must be on the invoice. The code is required on invoices only, not on credit or debit notes.
A worked example
A Pune consumer electronics chain had aggregate turnover of ₹620 crore in 2023-24, so it is covered. A customer buys a split air conditioner (18% GST after the September 2025 rate cut) for ₹59,000 including tax, and had paid a ₹10,000 booking advance online a week earlier.
- Taxable value = ₹59,000 ÷ 1.18 = ₹50,000.
- GST = ₹59,000 − ₹50,000 = ₹9,000, shown as CGST ₹4,500 and SGST ₹4,500.
- Balance payable = ₹59,000 − ₹10,000 = ₹49,000.
- The QR on the invoice carries the store's GSTIN and UPI ID, invoice number and date, the GST break-up, and ₹49,000 as the amount to pay.
- The printed invoice shows the full ₹59,000, the ₹10,000 advance with its receipt voucher number, and the ₹49,000 balance.
If the customer instead pays the ₹49,000 by card, the invoice prints the card transaction ID, date, time, amount and mode, and is treated as compliant.
The penalty
There is no separate penalty clause for the QR rule. Non-compliance falls under the general penalty in Section 125: up to ₹25,000 under the CGST Act and an equal amount under the state act, per instance. In a chain issuing thousands of B2C invoices a day, one broken template can create a large exposure, and auditors do check sample invoices.
Frequently asked questions
Our turnover has dropped below ₹500 crore. Can we stop?
No. The test is turnover above ₹500 crore in any financial year from 2017-18 onwards, so a single past year above the limit keeps you covered.
Does each franchisee need a QR code?
Each GSTIN is tested on its own PAN's aggregate turnover. A franchisee with its own PAN below ₹500 crore is not covered, even if the brand owner is.
Can the QR code be shown on a screen instead of printed?
Yes. CBIC has accepted display of the dynamic QR digitally, for example on a payment terminal, as long as the invoice links to it.
Is this the same as B2C e-invoicing?
No. B2C e-invoicing has only been discussed as a voluntary pilot. The dynamic QR rule is a separate, mandatory requirement for the ₹500 crore group.
Sources
- ✓CBIC Circular 156/12/2021-GST on dynamic QR code for B2C invoices, GST Council
- ✓Applicability of dynamic QR code on B2C invoices, TaxGuru
This is a summary, not legal advice. Confirm the current position on cbic-gst.gov.in and with your GST adviser before changing invoice templates.
Written by
Founder, Airwix Technologies (Sleet)
Vatsal Sutariya is the founder of Airwix Technologies in Ahmedabad, the company that builds Sleet: SleetHR for HR and payroll, and Sleet Accounting for GST billing and books. He writes about GST, invoicing, business tax and choosing software for Indian businesses, and checks each rule against the official notification before it is published.
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