B2B vs B2C Invoice: What Changes When Your Buyer Has a GSTIN
Updated: 30 October 2026
A B2B invoice is a bill to another registered business (the buyer has a GSTIN). A B2C invoice is a bill to a consumer or any unregistered buyer. The tax rate on the item is the same in both cases, but what the bill must show, how it is reported in GSTR-1 and whether e-invoicing applies are different.
Simple rule: customer ka GSTIN hai to B2B, nahi hai to B2C. The details below show why that one field matters so much.
Side-by-side comparison
| Point | B2B (buyer has GSTIN) | B2C (unregistered buyer) |
|---|---|---|
| Buyer details | Name, address and GSTIN are required | Name and address needed only in some cases (for example invoice value ₹50,000 or more, if the buyer asks) |
| Place of supply | Buyer’s state from GSTIN / ship-to address | Usually your shop’s state for counter sales; delivery state for goods sent |
| HSN code (turnover up to ₹5 crore) | 4 digits mandatory | Optional |
| GSTR-1 reporting | Table 4A, invoice by invoice | B2CS totals; B2CL invoice-wise if inter-state and above ₹1 lakh |
| E-invoice (IRN) | Mandatory if your aggregate turnover is above ₹5 crore | Not required (dynamic QR only for very large businesses) |
| Buyer gets ITC? | Yes, through GSTR-2B | No |
Scroll sideways to see all columns.
Checklist for a B2B invoice
- Type the buyer’s GSTIN carefully and check it on the GST portal (Search Taxpayer) the first time.
- Match the billing address and state with the GSTIN. The first two digits of the GSTIN are the state code.
- Charge CGST + SGST when the buyer is in your state and IGST when it is another state.
- Show HSN codes and the tax split item-wise.
- If your turnover is above ₹5 crore, generate the IRN on the e-invoice portal before handing over the bill. See the e-way bill and e-Invoice JSON guide.
Checklist for a B2C invoice
- Every bill still needs your GSTIN, a serial number, date, item description, taxable value, rate and tax.
- For small sales below ₹200 to unregistered buyers who do not ask for a bill, a consolidated daily invoice is allowed, but individual bills are easier to track.
- For goods delivered to another state, use the delivery state as the place of supply and charge IGST.
- Keep the customer mobile number on the bill if you want to send it on WhatsApp or track udhaar.
The most expensive mistake: missing GSTIN
If a business buyer gives you a GSTIN and you forget to put it on the bill, the sale goes into B2CS in your GSTR-1. The buyer then does not see it in GSTR-2B and cannot claim credit. Fixing it needs an amendment in a later GSTR-1, which takes time and annoys a good customer. Save the GSTIN on the customer record once so every future bill picks it up.
Place of supply: three quick examples
- A customer from Jabalpur buys at your Jabalpur counter: local sale, CGST + SGST, whether B2B or B2C.
- A registered dealer in Nagpur orders goods that you send by transport from Madhya Pradesh: inter-state B2B sale, IGST, and an e-way bill if the consignment value is above ₹50,000.
- A tourist from Delhi buys at your shop and carries the goods: the place of supply is your shop’s location, so it is a local B2C sale with CGST + SGST, not IGST.
How BizBahi handles B2B and B2C
In BizBahi, a bill is treated as B2B when the customer record has a valid GSTIN, and as B2C otherwise. The GSTR-1 export then puts B2B bills in the b2b sheet, inter-state B2C bills above ₹1 lakh in b2cl, and the rest in b2cs, and splits the HSN summary into B2B and B2C. It warns you when a GSTIN looks invalid.
The tax type (CGST + SGST or IGST) follows the place of supply on the bill. For B2B bills above the e-invoice limit, BizBahi can create the e-Invoice JSON file for upload on the government portal (paid plans).
Frequently asked questions
Is the GST rate different for B2B and B2C?
No. The rate depends on the item (HSN), not on the buyer. Only the invoice details and reporting differ.
Is e-invoicing needed for B2C bills?
No. E-invoicing applies to B2B (and export) invoices of businesses above the turnover limit, currently ₹5 crore.
What is B2CL?
An inter-state invoice to an unregistered buyer with invoice value above ₹1 lakh. It is reported invoice by invoice in GSTR-1 table 5.
Can I convert a B2C bill to B2B later?
Not by editing the filed bill. If the GSTIN was missed, correct it through the GSTR-1 amendment table within the time allowed.
Some features need a paid plan — see Pricing. All features are listed on the Features page.
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