Key takeaways
- A B2B invoice is issued to a GST-registered buyer and carries their GSTIN; a B2C invoice goes to an unregistered buyer.
- Only a B2B invoice lets the buyer claim input tax credit.
- B2B invoices are reported one by one in GSTR-1; most B2C sales are reported as totals by state and rate.
- E-invoicing applies to B2B invoices only.
The difference in one line
A B2B (business-to-business) invoice is issued to a buyer registered under GST and carries the buyer’s GSTIN. A B2C (business-to-consumer) invoice is issued to anyone who is not registered — usually an individual shopper.
The tax charged is the same. What changes is what goes on the invoice, how it is reported, and what the buyer can do with it.
Side by side
| B2B invoice | B2C invoice | |
|---|---|---|
| Buyer | GST-registered business | Unregistered buyer, usually a consumer |
| Buyer’s GSTIN on invoice | Required | Not applicable |
| Buyer’s name and address | Required | Required if taxable value is ₹50,000 or more |
| Input tax credit for buyer | Yes | No |
| In GSTR-1 | Invoice by invoice | Totals by state and rate (large inter-state invoices listed separately) |
| E-invoicing (IRN) | Applies above the turnover limit | Does not apply |
How each is reported in GSTR-1
B2B invoices are listed individually, with the buyer’s GSTIN, so that they appear in the buyer’s own statement and support their input tax credit.
B2C sales are mostly reported as totals by state and tax rate. The exception is a large inter-state B2C invoice — above ₹1 lakh since August 2024 — which is reported invoice by invoice.
Common mistakes
- Billing a business buyer as B2C, which costs them their input tax credit.
- Typing a GSTIN with a wrong character, so the invoice does not reach the buyer’s statement.
- Charging CGST and SGST on a B2B sale to a buyer in another state, where IGST applies.
B2B and B2C in Suiteloom
Every bill is B2C until you add a GSTIN. Add one and the bill becomes a B2B invoice: the GSTIN is checked as you type, the buyer’s state is read from it and the right tax is charged. Your GSTR-1 then lists B2B invoices individually and B2C sales by state and rate.
This guide is general information, checked on 23 October 2026. It is not legal or tax advice. Rules, rates and limits are notified by the government and change; check the GST portal and official notifications, or ask your accountant, for your business.