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Microlesson · 5-min read

Dynamic QR Code on B2C Invoices

# Dynamic QR Code on B2C Invoices

## Two Types of QR Codes

TypeWhat it contains
Static QRPerson-based — only contains supplier details (UPI ID etc.). Same for every transaction.
Dynamic QRTransaction-specific — contains payment details unique to that invoice (amount, invoice no., etc.)

A digital display of the dynamic QR to the customer (e.g., on a screen at billing) is also treated as 'having a QR'. The provision was introduced to encourage digital payments.

## When is Dynamic QR Mandatory?

Both conditions must be satisfied:

1. Supplier is a notified person = a registered person whose aggregate turnover exceeds ₹ 500 crores in any preceding FY from 2017-18 onwards, AND

2. The supply is a B2C supply (recipient is unregistered).

> Trap: Supply to a UIN holder (e.g., UN bodies, embassies) is treated as B2C for this purpose — dynamic QR is required.

## Persons Specifically Exempted from Dynamic QR

Even if turnover > ₹ 500 cr, dynamic QR is not required for:

  • Insurer / Banking company / FI / NBFC
  • GTA for transport of goods by road
  • Supplier of passenger transportation service
  • Supplier of services by way of admission to cinematograph films in multiplex cinemas
  • Supplier of OIDAR services
  • Exports (treated as B2B, not B2C)

## Quick Compare: E-Invoice vs Dynamic QR

FeatureE-InvoiceDynamic QR
Turnover threshold> ₹ 5 cr> ₹ 500 cr
Type of supplyB2B / ExportsB2C
Exempt categoriesSEZ unit, Insurer, Banks, GTA, passenger transport, multiplexInsurer, Banks, GTA, passenger transport, multiplex, OIDAR, Exports

Worked example

### Example 1

Example — Rony Ltd.

Rony Ltd. had aggregate turnover of ₹ 600 crores in FY 2022-23. During the current year it supplies goods to:

  • ABC Ltd. (a registered business) — B2B supply
  • Mr. Ram (an end consumer) — B2C supply

Analysis

  • Dynamic QR applies only to B2C supplies of a notified person (turnover > ₹ 500 cr).
  • Supply to ABC Ltd. is B2B → Dynamic QR not required (but e-invoice with static QR will apply because turnover > ₹ 5 cr).
  • Supply to Mr. Ram is B2C → Dynamic QR mandatory.

⚠️ Common exam mistakes

  • Applying dynamic QR to B2B invoices — it is only for B2C.
  • Treating supply to UIN holders as B2B — it is treated as B2C for dynamic QR.
  • Forgetting that exports are excluded from the dynamic QR mandate.
  • Confusing the turnover thresholds — ₹ 5 cr is for e-invoicing, ₹ 500 cr is for dynamic QR.
  • Missing that digital display of QR on a screen counts as 'having a QR'.
Reference:
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