- B2B (Table 4A): any sale to a buyer with a GSTIN, invoice by invoice, whatever the amount.
- B2CL (Table 5): inter-state sale to an unregistered buyer with an invoice value above ₹1 lakh, invoice by invoice. The limit was ₹2.5 lakh before 1 August 2024.
- B2CS (Table 7): every other sale to unregistered buyers, summarised by place of supply and rate, net of returns.
- Credit notes follow the original invoice: CDNR for B2B, CDNUR for B2CL and exports, and netted inside B2CS for small consumer sales.
On this page
GSTR-1 splits sales by who the buyer is and how big the invoice is, because that decides what the department needs to see. Registered buyers claim input tax credit, so their invoices are listed one by one. Large inter-state consumer invoices are listed individually so the destination state gets its tax. Everything else is summarised.
The three tables at a glance
| B2B · Table 4A | B2CL · Table 5 | B2CS · Table 7 | |
|---|---|---|---|
| Buyer | Registered (has a GSTIN) | Unregistered | Unregistered |
| Inter or intra-state | Either | Inter-state only | Intra-state (any value) or inter-state up to the limit |
| Invoice value | Any | Above ₹1 lakh | Intra: any. Inter: ₹1 lakh or less |
| Reported | Invoice by invoice, with buyer GSTIN | Invoice by invoice, with place of supply | Totals by place of supply and rate |
| Returns | Credit note in 9B (CDNR) | Credit note in 9B (CDNUR) | Netted in Table 7 |
The ₹1 lakh B2CL limit
Notification 12/2024–Central Tax (10 July 2024) amended rule 59(4) to bring the limit for invoice-wise reporting of inter-state supplies to unregistered persons down from ₹2.5 lakh to ₹1 lakh, effective 1 August 2024. The GST portal applied the new limit in its own update after that. Three points people miss:
- The limit is on the invoice value, which includes tax, not on the taxable value.
- It applies only to inter-state sales. An intra-state sale to a consumer is B2CS whatever the amount.
- It is per invoice. Ten invoices of ₹40,000 to the same buyer are all B2CS.
Worked examples
A seller registered in Gujarat:
| Sale | Table | Why |
|---|---|---|
| ₹2,40,000 laptop order to a company in Maharashtra with a GSTIN | B2B, Table 4A | Buyer is registered. Value doesn't matter. |
| ₹1,18,000 (incl. GST) sofa to a consumer in Rajasthan | B2CL, Table 5 | Unregistered, inter-state, invoice above ₹1 lakh |
| ₹94,400 (incl. GST) TV to a consumer in Rajasthan | B2CS, Table 7 | Inter-state but ₹1 lakh or less |
| ₹3,00,000 jewellery to a consumer in Ahmedabad | B2CS, Table 7 | Intra-state, so any value is B2CS |
| ₹699 kurti to a consumer in Kerala via Meesho | B2CS, Table 7 | Small inter-state consumer sale. Also counted in Table 14 for Meesho. |
Place of supply decides inter or intra
"Inter-state" means the place of supply is in a different state from where you're registered. For goods that are delivered, that is where delivery ends: the customer's shipping address, not their billing address and not your warehouse. For marketplace orders, use the ship-to state in the marketplace report. Our Amazon and Meesho guides name the exact columns.
Credit and debit notes
- Against a B2B invoice: Table 9B CDNR (registered), with the buyer's GSTIN and the note's details.
- Against a B2CL invoice or an export: Table 9B CDNUR (unregistered).
- Against small consumer sales (B2CS): no separate note line. Reduce the Table 7 figure for that state and rate. Table 7 is reported net of credit and debit notes.
Credit notes for a financial year must be reported by 30 November after that year ends, or by the date you file the annual return if that comes first.
How this affects the HSN summary
Table 12 is now filed in two tabs: B2B for supplies to registered persons, and B2C for everything to unregistered persons (both B2CL and B2CS). HSN codes are chosen from the portal's list. Businesses with aggregate turnover above ₹5 crore report 6-digit codes, and those up to ₹5 crore report at least 4 digits. Get the B2B/B2C split right in Tables 4, 5 and 7, and the HSN tabs follow.
Common mistakes
- Putting a registered buyer's invoice in B2CS because the amount was small. The buyer then can't claim the credit.
- Still using ₹2.5 lakh as the B2CL limit for periods after the change.
- Testing the limit on taxable value instead of invoice value.
- Treating intra-state high-value consumer sales as B2CL.
- Recording returns on B2CS sales as credit notes instead of netting them.
Let the split happen automatically
When sales come from marketplace reports, sorting them by hand every month is where errors creep in. FileKey reads the reports from 10+ marketplaces, separates B2B from B2C using the buyer GSTIN, summarises consumer sales by place of supply and rate with returns netted, and builds the HSN tabs to match. Review it, then download the GST portal JSON or Tally XML. See E-Commerce GSTR-1.
Frequently asked questions
What is the difference between B2CL and B2CS?
Both are sales to unregistered buyers. B2CL (Table 5) is only for inter-state invoices above ₹1 lakh, reported one by one. B2CS (Table 7) covers all other consumer sales, intra-state of any value and inter-state up to ₹1 lakh, summarised by place of supply and rate.
What is the B2CL limit in GSTR-1 now?
₹1 lakh per invoice, for inter-state supplies to unregistered persons. It was cut from ₹2.5 lakh by Notification 12/2024–Central Tax, effective 1 August 2024.
Is the ₹1 lakh limit on the taxable value or the invoice value?
The invoice value, which includes tax.
Where do I report a credit note for a B2CS sale?
Nowhere separately. Reduce the B2CS (Table 7) figure for the same place of supply and rate. Separate unregistered credit notes (CDNUR) are for B2CL invoices and exports.
Does an intra-state sale above ₹1 lakh to a consumer go in B2CL?
No. B2CL is inter-state only. Intra-state sales to unregistered buyers go in B2CS whatever the value.
Sources and further reading
- TallyPrime help: B2C (Large) invoices, Table 5A/5B
- Reduced B2C invoice reporting threshold in GSTR-1 (Cashflo)
- Phase III of Table 12 HSN reporting (via TaxGuru)
Rules change by notification and advisory. Check the GST portal before you file.
Written by the FileKey Team
FileKey builds the tools CA firms use for e-commerce GSTR-1 and bank statement conversion. We write these guides from the questions accountants and sellers ask us every filing month. Spotted something out of date? Write to [email protected] and we will fix it. More about FileKey.