QR Code Authentication

 

QR Code Authentication

QR is the acronym for Quick Response. They have been designed in such a way that data can be quickly read by a cell phone. It provides insights about the business. For example, a QR code on a piece of fruit could have details related to date of import, and a QR code on a concert ticket could provide information on the event and seats allocated. They are extremely useful and can store different types of data including URLs, text, geo coordinates. In order to correctly read the code, no external hardware is required. The camera is built to read the code and translate the data.

Why are QR codes important?

a)     Extracting information becomes easier and faster.

b)     Quick and accurate input can be retrieved as machines are used to capture the data present in the invoice.

c)     Tax officers can determine the validity of an invoice even when out in the field.

The Government of India recently released an app that verified QR codes and the authenticity of an e-voice.  The e-invoicing system -under GST- was bought into effect from 1^St October 2020. It is applicable to taxpayers that have an aggregate turnover exceeding INR 100 crore from January 1^st, 2021. This has been mandatory to businesses (effective 1^st October 2020) with an aggregate turnover of INR 500 crore from the years 2017/18 to 2020.

How to generate the QR code:

To generate the Invoice Reference Number (IRN), the JSON file of the invoice has to be uploaded onto the IRP (Invoice Registration Portal). Once the IRN has been successfully generated, the digital signature and QP code (corresponding to the particular JSON) is affixed by the IRP.

The validity and correctness of an invoice can be determined in two ways. Accounting Doctor has explained the process of doing so in a comprehensible and straightforward manner.

 

A)  Ways To Verify Authenticity

This can be done either by uploading a signed JSON file or a signed QR Code into the e-invoice system. The code contains crucial details like the supplier’s and buyers’ GSTIN, when the invoice was generated, HSN code, digital signature of the IRP, etc. The details can be validated by both the taxpayer as well as the tax officer through a QR code.

B)   App To Verify The QR Code

1)     Begin the process by first installing the app that helps verify the code. The link to the official government website is - https://einvoice1.gst.gov.in/Others/QRCodeVerifyApp. 

2)     A screen pops up with the State Emblem of India on the top left corner of the screen.

3)     You are provided with two options- Android and IOS. Once you make your choice depending on the device being used, you are required to enter your mobile number.

4)     An OTP will be generated and sent to you on the registered mobile number.

5)     Enter that OTP in the second blank to verify.

6)     When the system completes the authentication process, a QR code will be sent by the e-invoice system.

7)     The app APK and registered phone number will be verified and the user can download the app, install the APK and verify the QR code.

8)     It is important to note that your device might recognize the link as a threat and send an alert saying “untrusted source”. In such cases, make the required changes in the settings in order to trust it.

C)  Guidelines On How To Use The App

1)     Upon installation of the APK, a page opens up with two options. One that says “Verify QR code” and the other “Verify Signed e-invoices”. Click on the “Verify QR code” button to proceed.

2)     Here, you will be asked to scan your QR code. Upon scanning, the invoice details will pop up on the screen. It will display the following details:

a)     Supplier GSTIN

b)     Recipient GSTIN

c)     Document number

d)     Document type

e)     Document date

f)      Total invoice value

g)     Main HSN code

h)     IRN

i)      Issued by

3)     The second button- Verify Signed e-invoice- provides users with an option to upload the JSON invoice.

4)     Once uploaded, it will display all the important details pertaining to the invoice.

 

 Conclusion

Generating and viewing e-invoice details isn’t a herculean task. Rather it can be done in a matter of minutes using the government website. From January 1^st, 2021 taxpayers with an aggregate turnover of more than INR 100 crore have to implement e-invoicing.