Glossary
What are B2B and B2C invoices?
The buyer's GSTIN decides which kind you are raising, and that decides how the invoice is reported.
Updated
In short
A B2B invoice goes to a GST-registered buyer and carries their GSTIN; a B2C invoice goes to a consumer or unregistered buyer. SimpleERP records each customer's GSTIN and tax treatment and shows both in the sales register.
A B2B invoice is issued to a buyer registered under GST and carries the buyer's GSTIN, so the buyer can claim input tax credit. A B2C invoice is issued to a consumer or an unregistered buyer. In GSTR-1, B2B invoices are reported one by one, large inter-state B2C invoices one by one, and other B2C sales as totals by state and rate.
B2B and B2C invoices: a worked example
Lakshmi Steel Furnitures raises two invoices on the same day:
| Invoice | Buyer | Value with GST | GSTR-1 section |
|---|---|---|---|
| INV-2026-27-0213 | Ravi Stores, registered, Coimbatore | ₹11,776.40 | B2B, invoice by invoice |
| INV-2026-27-0214 | A walk-in customer in Coimbatore | ₹7,611 | B2C small, totals by state and rate |
FAQ
Questions, answered
Why does the buyer's GSTIN matter so much?
Because the buyer's input tax credit depends on it. A B2B invoice reported with the right GSTIN appears in the buyer's GSTR-2B, and they can claim the credit. A missing or wrong GSTIN means a customer who cannot claim and will ask you to amend.
What is a B2C large invoice?
An inter-state invoice to an unregistered buyer above a value limit, reported invoice by invoice in GSTR-1. The limit was reduced from ₹2.5 lakh to ₹1 lakh in 2024, as notified. Check the GST portal for the current figure.
Does e-invoicing apply to B2C invoices?
E-invoicing does not apply to B2C invoices. It applies to B2B invoices of businesses above the notified turnover. B2C invoices are excluded, though large businesses must print a dynamic QR code on them. SimpleERP does not generate IRNs.
Can one customer be B2B on some invoices and B2C on others?
One customer is not usually B2B on some invoices and B2C on others. The classification follows the buyer's registration. If a customer registers partway through the year, add their GSTIN in SimpleERP from that date, and invoices after that become B2B.
Related
Keep reading
Tax invoice
The document a GST-registered business issues for a taxable sale, with the mandatory GST fields.
Read moreGSTR-1
The GST return reporting your sales, invoice by invoice, that feeds your buyers' GSTR-2B.
Read moreGST invoice format
The fields a GST tax invoice must carry, how place of supply picks CGST and SGST or IGST, HSN and SAC codes, and a worked invoice.
Read more
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