GST · 26 June 2026
B2B vs B2C Supply: How GST Invoice Rules Differ
A supply is B2B when the buyer is registered under GST and holds a GSTIN, and B2C when the buyer is unregistered, an ordinary consumer. The distinction decides what the invoice must show and how the sale is reported. A B2B tax invoice must carry the recipient GSTIN, name and address, and each one is reported individually in GSTR-1 so the buyer can claim input tax credit. A B2C sale carries no buyer GSTIN, and most B2C sales are reported as a consolidated summary rather than invoice by invoice. Two extra rules attach to the larger end: e-invoicing applies to B2B supplies and exports above the turnover threshold, not to B2C, and a dynamic QR code is required on B2C invoices issued by very large taxpayers. Misreading the buyer status either denies a registered buyer their credit or collects details you did not need.
By Mr. Amit Joshi
Last reviewed
26 June 2026
In this section
Answers
- B2B vs B2C Supply: How GST Invoice Rules Differ
- What Is GSTR-1, the GST Return of Outward Supplies?
- What Is GSTR-3B, the Monthly GST Summary Return?
- What Is the Time of Supply Under GST, and When Does Tax Become Due?
- Advance Receipt Under GST: When Do You Issue a Receipt Voucher?
- Credit Note vs Debit Note Under GST: When Do You Issue Each?
- What Is GSTR-2B, and Why Does It Now Decide Your Input Tax Credit?
- What Is the Value of Supply Under Section 15 of the CGST Act?
- What Are the GST Rate Slabs in India After the GST 2.0 Reform?
- Exempt vs Nil-Rated vs Zero-Rated Supply: What Is the Difference?
A GST invoice looks the same whether your buyer is a registered business or an ordinary consumer.
The buyer registration status changes the invoice: a B2B supply must carry the recipient GSTIN under Rule 46 and is reported invoice-wise, while a B2C supply is not.
What is the difference between a B2B and a B2C supply?
Short answer
A B2B supply is to a buyer registered under GST who holds a GSTIN; a B2C supply is to an unregistered buyer, typically a consumer.
The label is about who is buying, not what is sold. A registered buyer needs your invoice to claim back the GST on it, so the law makes a B2B invoice carry more, and be reported more precisely. A consumer cannot claim that credit, so a B2C sale is lighter on detail. Reading the buyer status correctly is the first decision on every invoice.
How does a B2B invoice differ from a B2C invoice?
Short answer
A B2B invoice must show the recipient GSTIN, name and address under Rule 46; a B2C invoice carries no buyer GSTIN.
- The recipient GSTIN on a B2B invoice is what lets the buyer match the supply and claim input tax credit.
- A B2C invoice still needs your own GSTIN, the value, the tax rate and the place of supply, just not the buyer registration number.
- Issuing a B2B invoice without the buyer GSTIN is a frequent reason a registered customer asks for a corrected bill.
How is each reported in GSTR-1?
Short answer
B2B supplies are reported invoice by invoice; most B2C supplies are reported as a consolidated summary, not individually.
- Invoice-wise B2B reporting is what populates the buyer auto-drafted ITC statement, so a missed B2B invoice hurts the buyer too.
- Large inter-state B2C sales above a set value are reported individually, while smaller B2C sales are summarised by rate.
- This matters because a buyer whose invoice never appears in their statement will chase you to fix your return.
Do e-invoicing and the QR code rules apply to B2C?
Short answer
E-invoicing applies to B2B supplies and exports above the turnover threshold, not B2C; a dynamic QR code is required on B2C invoices of very large taxpayers under Notification 14/2020.
- A business crossing the e-invoicing threshold must report its B2B invoices to the portal, but its B2C invoices stay outside that system.
- The B2C dynamic QR requirement applies above a turnover limit set by notification, so confirm whether it reaches your business.
- Getting the B2B route right from the start avoids reissuing invoices once you cross a threshold mid-year.
References & related
Primary sources
- Section 31, Central Goods and Services Tax Act 2017 — CBICObligation to issue a tax invoice and a bill of supply.
- Rule 46, Central Goods and Services Tax Rules 2017 — CBICRecipient GSTIN and address required where the buyer is registered.
- Rule 48, Central Goods and Services Tax Rules 2017 — CBICE-invoicing scope: B2B supplies and exports above the turnover threshold.
- Notification 14/2020 - Central Tax — CBICDynamic QR code on B2C invoices for large registered persons.
Last reviewed: 26 June 2026