Under GST, B2B means a sale to a buyer registered under GST, and B2C a sale to anyone who is not, which includes consumers and unregistered businesses. The difference changes how the invoice is made and reported.
What changes
| B2B | B2C | |
|---|---|---|
| Buyer's GSTIN on invoice | Required | Not applicable |
| Buyer can claim credit | Yes | No |
| GSTR-1 reporting | Invoice by invoice | B2CL for large inter-state, B2CS summary for the rest |
| E-invoice, where applicable | Yes | No |
| HSN digits, turnover up to ₹5 crore | 4 digits required | Optional |
Why it matters for pricing
A business buyer usually compares prices before GST, because it gets the GST back as credit. A consumer compares the final price including GST. A distributor that sells to both often keeps two price lists for the same item.
Mistakes to avoid
Recording a registered buyer as a consumer, or leaving out their GSTIN, means their credit does not show in their GSTR-2B. Ask for the GSTIN when the customer is added, and check it on the GST portal.
In MatruOS, a customer without a GSTIN is billed as an unregistered buyer, and the GSTR-1 file separates B2B and B2CS lines.