# B2B vs B2C Supply: How GST Invoice Rules Differ

**Category:** GST | **Published:** 2026-06-26 | **Last reviewed:** 2026-06-26 | **Author:** Mr. Amit Joshi

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.

> **Myth:** A GST invoice looks the same whether your buyer is a registered business or an ordinary consumer.
>
> **Fact:** The buyer registration status changes the invoice: a B2B supply must carry the recipient [GSTIN under Rule 46](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-rules-as-amended) 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](/answers/what-is-a-gstin-15-digit-number); 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](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-rules-as-amended); 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](https://www.cbic.gov.in/htdocs-cbec/gst).

- 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.

**[Generate compliant B2B and B2C GST invoices](https://hrareceipt.in/pakka-bill)**

## Primary sources

- [Section 31, Central Goods and Services Tax Act 2017 — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-act) — Obligation to issue a tax invoice and a bill of supply.
- [Rule 46, Central Goods and Services Tax Rules 2017 — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-rules-as-amended) — Recipient GSTIN and address required where the buyer is registered.
- [Rule 48, Central Goods and Services Tax Rules 2017 — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst/cgst-rules-as-amended) — E-invoicing scope: B2B supplies and exports above the turnover threshold.
- [Notification 14/2020 - Central Tax — CBIC](https://www.cbic.gov.in/htdocs-cbec/gst) — Dynamic QR code on B2C invoices for large registered persons.

## Related

- [What is a GSTIN — the buyer number that defines a B2B sale](https://hrareceipt.in/answers/what-is-a-gstin-15-digit-number)
- [Inter-state vs intra-state supply — the tax-type split](https://hrareceipt.in/answers/inter-state-vs-intra-state-supply-gst)
- [What is a pakka bill — the GST tax invoice explained](https://hrareceipt.in/answers/what-is-a-pakka-bill)

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