How to Know if QR Codes on Invoices Are Mandatory or Optional (2025 Update)

Here’s a bold truth: QR codes on invoices are no longer just about looking modern — for some businesses, they’re a legal requirement. Yet, for many others, adding a QR code is still optional.

Confused? You’re not alone. Let’s break it down practically, so you know when it’s mandatory and when it’s simply a smart choice to improve payment efficiency.

What’s This Post About?

This isn’t just a list of GST rules. This is a step-by-step guide to help you figure out whether YOU need QR codes on your invoices in 2025 — and how to implement them properly if you do.

When Are QR Codes Mandatory vs Optional?

1️⃣ B2C (Business-to-Consumer) Large Enterprises – Mandatory

If you are a large enterprise (₹500 Cr+ turnover) and issuing B2C invoices, dynamic QR codes are mandatory on every invoice.

Why?
It helps the customer scan & pay digitally and ensures compliance under GST Notification 14/2020.

2️⃣ Small Businesses / MSMEs / Freelancers – Optional

If your turnover is below ₹500 Cr or you only do B2B invoicing, QR codes are optional.

You can still use them to:

• Speed up payments
• Simplify UPI collections
• Look more professional

But compliance won’t force you.

3️⃣ B2B Transactions – E-Invoice Has Its Own QR Code

For businesses that fall under e-invoicing norms, the government IRP portal auto-generates a QR code. You must include that — but there’s no need for a separate UPI/payment QR.

4️⃣ Voluntary Usage is Growing

Even when not required, smart businesses are adding QR codes for faster UPI payments.

Why? Because payment friction kills cash flow.
One scan and you’re paid — no IFSC, no manual entry.

Why It Matters (Beyond Compliance)

✔️ Faster Payments: Clients love the ease
✔️ Professional Look: Shows you’re tech-savvy
✔️ Fewer Errors: Avoid wrong bank entries
✔️ Future-Proofing: Prepares you for evolving norms