GST resources
B2B vs B2C Invoices: What Changes on the Bill and in the Return
A B2B invoice goes to a buyer with a GSTIN; a B2C invoice goes to a consumer or an unregistered business. The tax rate is the same, but the fields, the reporting and what the buyer can do with the bill are different.
The differences at a glance
| B2B | B2C | |
|---|---|---|
| Buyer | Registered, has a GSTIN | Consumer or unregistered business |
| Buyer's GSTIN on the invoice | Required | Not applicable |
| Buyer's name and address | Required | Required when the invoice is ₹50,000 or more, with delivery address and state |
| Input credit for the buyer | Yes, once you report it | No |
| GSTR-1 reporting | Invoice by invoice (table 4) | Inter-state above ₹1 lakh invoice by invoice (table 5); the rest as totals by state and rate (table 7) |
| E-invoice (IRN) | Required if your turnover exceeds ₹5 crore | Not required |
| Typical pricing | Price plus GST shown separately | Often MRP or tax-inclusive price |
Why the buyer's GSTIN matters
A registered buyer can claim input credit only on invoices that carry its GSTIN and that you report in GSTR-1 under its GSTIN. If you bill a registered buyer as B2C, the sale is reported as a consumer sale, it never reaches the buyer's GSTR-2B, and the buyer loses the credit until you amend the invoice. That is the most common reason wholesale customers move to another supplier.
Worked example
Sri Lakshmi Stores in Mysuru sells ₹40,000 of goods at 5% to a registered hotel in Mysuru. The B2B invoice shows the hotel's GSTIN (starting 29), taxable value ₹40,000, CGST ₹1,000 and SGST ₹1,000, total ₹42,000, and goes into GSTR-1 table 4 under the hotel's GSTIN.
The same day it sells ₹1,000 of goods to a walk-in customer, also at 5%. That B2C bill (₹1,050) is added to the month's Karnataka 5% total in table 7.
A homestay in Coorg, which is not registered, orders ₹1,20,000 of supplies to be delivered there. Coorg is in Karnataka, so this is an intra-state B2C sale; because it is above ₹50,000 the invoice must carry the buyer's name, address and delivery address. Had the same order been delivered to Kerala, it would be an inter-state B2C invoice above ₹1 lakh and reported individually in table 5.
Common mistakes
- Forgetting to save the customer's GSTIN, so a B2B sale lands in B2C
- Typing the GSTIN wrongly, so the credit goes to no one
- Not printing the buyer's address on B2C invoices of ₹50,000 or more
- Reporting a large inter-state B2C invoice inside the state totals
- Leaving amendments until after 30 November of the next year, when they can no longer be made
Fixing a wrong invoice
A B2B invoice reported as B2C, or with the wrong GSTIN, is corrected through the amendment tables of GSTR-1 (or GSTR-1A before filing GSTR-3B for the period). The correction must be made by 30 November after the end of the financial year, or the date of filing the annual return if earlier.
Checklist at the counter
- Ask every business customer for its GSTIN before you bill, not after
- Check a new GSTIN on the GST portal's Search Taxpayer
- Save the GSTIN on the customer so the next bill picks it up
- For deliveries, record the delivery state as well as the billing address
- Note the name and address on any B2C bill of ₹50,000 or more
- Send B2B invoices promptly, so the buyer can match them in GSTR-2B
How TripleBill helps
Save a customer's GSTIN once in TripleBill and every invoice to them is B2B; GSTR-1 splits B2B, large B2C and other B2C sales automatically, and pre-filing checks flag invalid GSTINs.
This page is general information about GST in India, not tax advice. Rates, thresholds and rules change; confirm with the GST portal or a chartered accountant before acting.
Last reviewed and sources
Last reviewed: November 2026. Facts on this page were checked against:
- CGST Rules, 2017, rule 46
- CGST Rules, 2017, rule 59(4) as amended by Notification No. 12/2024-Central Tax (₹1 lakh from 1 August 2024)
- Notification No. 10/2023-Central Tax (e-invoicing above ₹5 crore)
- CGST Act, 2017, section 37(3)
Frequently asked questions
What is the difference between B2B and B2C invoices?
A B2B invoice is issued to a registered buyer and carries its GSTIN, so the buyer can claim credit; a B2C invoice is issued to a consumer or unregistered buyer.
What is B2CL in GSTR-1?
B2C large: inter-state invoices to unregistered buyers with invoice value above ₹1 lakh, reported invoice by invoice. The threshold was ₹2.5 lakh before August 2024.
What is B2CS?
B2C small: all other consumer sales, reported as totals by place of supply and rate.
Does a B2C invoice need the customer's name?
Required when the invoice value is ₹50,000 or more, along with the delivery address and state. Below that, it is optional.
Do B2C invoices need an IRN?
No. E-invoicing applies to B2B invoices and exports. Very large businesses must print a dynamic QR code on B2C invoices instead.
My customer gave the GSTIN after I billed. What now?
Amend the invoice in GSTR-1 (or GSTR-1A) to add the GSTIN, within the time limit for that financial year.
Is the GST rate different for B2B and B2C sales?
No. The rate depends on the goods or service and the place of supply decides the type of tax; whether the buyer is registered only changes the invoice details and how it is reported.
Can I give a B2B customer a simple counter receipt?
Give a full tax invoice with the buyer's GSTIN. A receipt without it will not let the buyer claim credit.
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