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GST · Registration & returnsGSTR-1 B2B vs B2C reporting: invoice tables and place-of-supply errors
Wrongly classifying a sale as B2C instead of B2B denies your buyer input tax credit; a wrong place of supply means paying tax to the wrong government. Here is how each GSTR-1 table works and how to avoid the common errors.
GSTR-1 is the statement of outward supplies. What you report drives your buyer's GSTR-2B (their ITC) and your GSTR-3B liability. Correct classification is therefore essential.
The main tables
| Table | What goes here |
|---|---|
| 4A/4B/4C – B2B | Supplies to registered persons, invoice-wise, with buyer GSTIN (including reverse charge supplies) |
| 5 – B2CL | Inter-State supplies to unregistered persons with invoice value above ₹1 lakh, invoice-wise |
| 6 – Exports, SEZ, deemed exports | With/without payment of tax, shipping bill details |
| 7 – B2CS | Other supplies to unregistered persons, rate-wise and State-wise summary |
| 8 – Nil-rated, exempt, non-GST | Summary |
| 9 – Amendments | Changes to earlier invoices |
| 9B – Credit/debit notes | Registered (CDNR) and unregistered (CDNUR) |
| 11 – Advances | Advance received / adjusted |
| 12 – HSN summary | B2B and B2C separately |
| 13 – Documents issued | Serial number ranges of invoices, credit notes etc. |
| 14 / 15 – E-commerce | Supplies through operators |
Place of supply: the most common error
| Supply | Place of supply | Tax |
|---|---|---|
| Goods delivered in the supplier's State | That State | CGST + SGST |
| Goods delivered to another State | Destination State | IGST |
| Services – general rule, registered recipient | Recipient's location | Depends |
| Services – unregistered recipient | Recipient's address on record, else supplier's location | Depends |
| Immovable property-related services | Location of property | Depends |
If tax is paid as CGST+SGST when IGST was due (or vice versa), the correct tax must be paid and a refund of the wrong tax claimed – no interest on the correct tax under Section 77, but the refund process is slow. Get it right at the invoice stage.
Worked example
Example: Homecraft Kitchenware, Delhi, makes these sales in July 2026:
| Invoice | Buyer | Delivery | Value + GST | Table |
|---|---|---|---|---|
| 101 | Registered retailer, Delhi | Delhi | ₹2,00,000 + 18% | 4A B2B (CGST+SGST) |
| 102 | Registered dealer, Haryana | Sonipat | ₹3,50,000 + 18% | 4A B2B (IGST) |
| 103 | Unregistered consumer, Punjab | Ludhiana | ₹1,40,000 + 18% (invoice ₹1,65,200) | 5 B2CL (IGST) |
| 104 | Unregistered consumer, Delhi | Delhi | ₹30,000 + 18% | 7 B2CS (Delhi, 18%) |
| 105 | Unregistered consumer, UP | Noida | ₹60,000 + 18% | 7 B2CS (UP, IGST 18%) |
| 106 | Exporter (registered) | Delhi | ₹5,00,000 + 0.1% (merchant export) | 4A/6 as applicable |
Invoice 105 is inter-State but below ₹1 lakh, so it goes to B2CS with State "Uttar Pradesh" – not Delhi. A common error is to report all B2C sales under the supplier's State.
Amendments and GSTR-1A
- Errors found before filing GSTR-3B of the same month can be fixed through GSTR-1A.
- Later, amend in Table 9A/9C of a subsequent GSTR-1.
- Amendments are allowed until 30 November following the financial year (or the annual return date, if earlier).
HSN summary
Report HSN-wise quantity, value and tax. From 2025, the portal requires selection of HSN codes from a dropdown and separate B2B and B2C summaries. Turnover up to ₹5 crore: 4-digit HSN; above ₹5 crore: 6-digit.
Common mistakes
- Reporting a B2B sale without GSTIN as B2C – buyer loses ITC and may stop buying.
- Wrong State in B2CS.
- Missing documents-issued table.
- Credit notes not linked to the original invoice where required.
- Reporting exports without shipping bill details.
Key takeaway
Classify every invoice correctly – B2B with GSTIN, B2CL above ₹1 lakh inter-State, B2CS summary with the right State – and fix errors through GSTR-1A. Our GST return service prepares GSTR-1 from your sales data and reconciles it with GSTR-3B.
Official references
Provisions discussed (summaries in our Law Library):
- CGST Act, 2017 – Section 37: Outward supplies (GSTR-1)
Official sources to verify the current text, notifications and circulars:
Frequently asked questions
What is the difference between B2CL and B2CS?
B2CL is for inter-State supplies to unregistered persons where invoice value exceeds the prescribed limit (₹1 lakh from August 2024). B2CS covers all other supplies to unregistered persons – intra-State of any value and inter-State below the limit – reported in summary.
My customer gave GSTIN after I reported the sale as B2C. What can I do?
Amend the invoice from B2C to B2B in GSTR-1 of a later month (or in GSTR-1A of the same month before filing GSTR-3B), within the time limit of 30 November following the financial year.
Is HSN summary mandatory in GSTR-1?
Yes. Table 12 requires HSN-wise summary – 4 digits for aggregate turnover up to ₹5 crore and 6 digits above, with B2B and B2C shown separately.
Where do I report sales through e-commerce operators?
In the tables for supplies through e-commerce operators, with the operator's GSTIN, in addition to the regular B2B/B2C details as per the current format.
Where do I report sales to SEZ units?
In the SEZ table of GSTR-1 (with or without payment of tax), with the SEZ unit's GSTIN.
How are advances reported?
Advances received for services (on which tax is paid) are reported in the advances table and adjusted when invoices are issued.
Is HSN required for B2C invoices?
For taxpayers up to ₹5 crore turnover, HSN is optional on B2C invoices but required in the GSTR-1 HSN summary.
This article is general information on the law as on 10 November 2026, written for educational purposes. It is not professional advice for your case. Section numbers under the Income-tax Act, 2025 should be confirmed with the official section mapping on the Income Tax Department website before use in filings.
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