Inter State B2C Supply Means

What is Inter State B2C Supply under GST


The details about Inter State B2C Supply are explained here

Inter State B2C Supply

B2C supplies under GST

The terms B2C and B2B are used very frequently these days, these are stand for ‘Business to Consumers’ and ‘Business to Business’, these two are totally different kind of transactions because the intention of transaction are altogether different.

The overall transaction volume of B2B is much higher than that of B2C transactions. The primary reason for this is that in a typical supply chain there will be many B2B transactions involving subcomponents or raw materials, and only one B2C transaction, specifically sale of the finished product to the end customer. For example, an automobile manufacturer makes several B2B transactions such as buying tires, glass for windscreens, and rubber hoses for its vehicles. The final transaction, a finished vehicle sold to the consumer, is a single (B2C) transaction.

It might be possible that the subjects of transactions are same for example selling of a Car to a person who is re-designing or modifying it and then selling it to ultimate consumers on the other hand a Car sold to the ultimate consumer directly from show room. Even though the subjects in the transaction are same, but in the first example it is a B2B transaction and in the other it is a B2C transaction.

For the following differences, the B2C and B2B transactions are taxed under GST in a different manner:

Nature of Supply:

There is several B2B transition in one supply chain of a product until it reached to ultimate consumer where a B2C transaction occurs.

The credit of GSTs (CGST/SGST/IGST) paid in B2B moved through entire supply chain where the supply receiver is paying GSTs and Supplier gets credit of input tax paid at the time of acquisition. In B2C transaction the supply receiver is the ultimate consumer who shall ultimately bear the all GSTs paid on the final supply and not entitled to get any credit of GSTs paid by him.

Place of Supply

In B2C in general the transactions happened immediately on the spot, the determination of place of supply is easier than B2B transactions. In B2C transactions are generally followed after a long process like, quotation, negotiation, supply, payment, return/reimbursement on deficiencies etc.

The B2B supplies are completes in several trances of supply, they may be running in nature also.

Time of Supply

In B2C the time of supply are immediate after purchase and payment which are generally on spot. In B2B the time of supply may be at the time of supply actually made, date of Payment or the date of periodical returns or date of payment of GSTs depends upon the facts and documentation of transactions.

Place of taxation

Place of taxation is generally the place of destination of supply, in B2C the place of destination are generally the place of delivery, but in B2B, the place of taxation may be different or may be more than one, it may be registered office of the company or may be the place where actually goods delivered or the services rendered.

Business Agreement and Invoicing (general correspondence, purchase orders, invoices, payment instruments and receipts.

In B2C generally the invoice (or simplified invoice) construed as an agreement and the sale and purchase are genially governed by the terms and conditions are mentioned in the invoice itself. In B2C generally a detailed commercial agreement entered and thereafter Purchase Order issued and payment may be made prior, after or at the time supply made. The place, time, taxable value of supply will be determined on the basis of the abovesaid documents. Therefore these documents must be referred to determining the GST liabilities in a B2B transaction.

Settlement of transaction and payment process:

In B2C, the payments for consideration are paid at the time of purchase and supply. However in B2B the payments are being made in installments over a period after delivery of supply. It is often the supplies are made throughout year and the supplies are considered to be a continuous supply and the time of supply is deduced differently in comparison of one time supply.

 B2C and B2B are totally different transactions as far as GST is concerned. A single common provision in GST will not be able to deal with these two transactions justly. The OECD has also suggested and drafted two different sets of principles for cross border transaction to deal with B2C and B2B transactions.

Thus we will see there will be two separate sets of rules and regulation for ‘place of supply’, ‘time of supply’, valuation etc.

Inter state B2C Suppply :

For all inter-state B2C supplies (including to non-registered Government entities, Consumer / person dealing in exempted / NIL rated / non GST goods or services), the suppliers will upload invoice level details in respect of every invoice whose value is more than Rs. 2,50,000/-. For invoices below this value, State-wise summary of supply statement will be filed covering those invoices where there is address on record. The address of the buyer has to be mandatorily reflected in every invoice having a value of Rs. 50,000/- or more. (Model GST Law may provide for such a provision). Invoices for a value less than Rs. 50,000/- that do not have address on record will be treated as intra-state supply. In other words, State-wise summary of inter-State supply would be filed covering (a) those invoices value of which is less than Rs. 50000/- and where address is on record and (b) those invoices whose value is between Rs. 50000/- to Rs. 250000/-.

The information provided here is about Inter State B2C Supply.  If you would you like to add more information about Inter State B2C Supply, share below your thoughts.





KRISHNA PADA DAS: Is from a contructar to a supply Treated as B2B Supply ?

girish mangla: i want to know if service receiver is outside India and service provided in India to more than one state then whether on single invoice B2C interstate supply to more than one state could be shown or not

Prashant Atkare: Very Nice Info sir

Insamam : Is B2c interstate outward supply file under B2c Large or B2c Small


MADAN SHARMA: sir, can BtoB and BtoC invoices serial No. in diffreance series

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