When e-invoicing became mandatory for large businesses, many people assumed QR codes were only for B2B invoices. That’s not entirely true. For B2C invoices, GST introduced a Dynamic QR Code requirement—mainly to push digital payments and improve transparency.
But what exactly is a dynamic QR code? Who needs it? Is it the same as the e-invoice QR code? And what happens if you miss it?
Let’s break this down in plain language.
What Is a Dynamic QR Code?
A Dynamic QR Code on a B2C invoice is a QR code that enables digital payment at the time of purchase.
Unlike static QR codes:
- It is payment-specific
- It can capture invoice details like amount, GSTIN, invoice number
- It allows instant payment via UPI / wallets / cards
In short:
“Dynamic QR code helps customers pay digitally against a specific invoice.”
Why Did GST Introduce Dynamic QR Codes for B2C?
The government wanted to:
- Promote digital payments
- Reduce cash transactions
- Improve invoice transparency
- Create an audit trail for large B2C sales
This rule mainly targets large businesses with high consumer-facing turnover.
Who Is Required to Add Dynamic QR Code?
Dynamic QR Code is mandatory for:
- Registered persons
- Turnover above ₹500 crore in any financial year since 2017–18
- B2C supplies (supplies to unregistered persons)
It does not apply to small or medium businesses below the threshold.
Which Invoices Require Dynamic QR Code?
Dynamic QR code is required on:
- B2C tax invoices
It is not required on:
- B2B invoices (these fall under e-invoicing)
- Export invoices
- Supplies covered under e-invoicing
This is where many businesses get confused.
Is Dynamic QR Code Same as E-Invoice QR Code?
No. They are completely different.
| Point | Dynamic QR (B2C) | E-Invoice QR (B2B) |
| Purpose | Digital payment | Invoice authentication |
| Applicable to | B2C | B2B |
| Generated by | Payment system | IRP |
| Mandatory threshold | ₹500 crore | ₹5 crore |
Mixing these up is a common compliance mistake.
What Details Should Dynamic QR Code Contain?
As per CBIC guidelines, it should include:
- Supplier GSTIN
- Supplier UPI ID / payment reference
- Invoice number
- Invoice date
- Invoice value
- GST amount
If these details are embedded, the QR code is considered compliant.
What If Customer Pays Digitally Before Invoice Is Issued?
This is very common in retail and online sales.
If:
- Customer pays via UPI/card before invoice generation
- Payment details are clearly mentioned on the invoice
Then separate dynamic QR code is NOT required.
Mentioning:
- Transaction ID
- Payment mode
- Date
is sufficient.
Exemptions From Dynamic QR Code Requirement
Dynamic QR code is not mandatory if:
- Payment is received digitally before invoice is issued
- Invoice clearly mentions payment reference
- Supplies are B2B or exports
- Supplier is below ₹500 crore turnover
These exemptions save a lot of operational effort.
Practical Example (Easy to Relate)
Retail Store (₹700 Cr Turnover)
Customer scans QR at billing counter and pays via UPI
- Invoice mentions payment ID
- Dynamic QR code requirement satisfied
Restaurant Chain
Customer pays via POS machine
- Payment details printed on invoice
- No additional QR needed
Common Mistakes Businesses Make
- Assuming QR code is required on all invoices
- Using static brand QR code (not invoice-linked)
- Missing payment details on invoice
- Treating dynamic QR same as e-invoice QR
- Ignoring CBIC clarifications
Most notices arise due to misunderstanding, not intention.
How Dynamic QR Code Fits With Other GST Rules
Dynamic QR code connects with:
- Invoice structure (Rule 46)
- B2C invoicing rules
- Digital payment documentation
That’s why invoice accuracy still matters even here.
Recommended Reading
To understand dynamic QR codes in the full GST invoicing ecosystem, also read:
- Start with the foundation in Understanding GST Tax Invoices: A Simple Beginner Guide.
- For invoice timing and structure, read GST Tax Invoice Rules for Goods: Time, Format & Cases and GST Tax Invoice Rules for Services: Time, Limits & Use.
- To avoid missing mandatory fields, refer to Mandatory Fields of GST Tax Invoice: Rule 46 Explained.
- For e-invoice related QR codes and IRN, read E-Invoicing Under GST: Meaning, Rules & Step-by-Step and Invoice Registration Portal (IRP) & IRN Under GST.
Together, these blogs ensure complete GST invoice compliance.
FAQs
1. Is dynamic QR code mandatory for all businesses?
No. Only for B2C suppliers with turnover above ₹500 crore.
2. Is dynamic QR required if payment is already received?
No, if payment details are clearly mentioned on invoice.
3. Can I use the same QR code on all invoices?
No. It must be invoice-specific or payment-specific.
4. Is dynamic QR required for online sales?
Usually no, if digital payment happens before invoice generation.
5. What happens if dynamic QR is missing?
It may lead to non-compliance and possible penalties.
6. Is dynamic QR required for exports?
No. Export invoices are exempt.
