What are the rules for B2C invoice?

In the UK, B2C (Business-to-Consumer) invoices are generally not legally required unless requested by the customer, as simplified VAT invoices or retail receipts are sufficient. However, if issued, they must include the seller's name/address, date, description of goods/services, and total amount (including VAT) to comply with HMRC guidelines.

Is an invoice mandatory for B2C?

E-invoicing is not mandatory for B2C, as these invoices are not eligible for input tax credit (ITC).

What is the limit of B2C invoice?

A B2C small (B2CS) invoice refers to a transaction between a registered business and an unregistered customer (consumer) with an invoice value up to Rs. 1 lakh. This scenario applies to both intra-state and inter-state supplies, which implies the business and the customer are located within the same state in India.

What is B2C invoicing?

B2C means 'Business-to-consumer' and refers to the direct sale from a business to a customer (as opposed to a sale to another business) Stay on top of your customer service with invoicing & accounting software like Debitoor.

What is an example of a B2C payment?

Anytime you go to the supermarket, gas station, or any other store to make purchases for personal use, you're participating in a B2C transaction for your personal use and not on behalf of an organization.

e-Invoicing flow for B2B and B2C Invoices

Who is exempt from an e-invoice?

Any supplier of a taxable service who is an insurer, banking company, financial institution, or Non-banking financial company is exempt from the applicability of e-invoicing. When the supplier is a goods transport agency providing services related to the transportation of goods by road in a goods carriage.

What is the mandatory limit for invoice?

As of the latest update, any business with an annual turnover exceeding ₹5 Crore must follow e-invoicing norms. This rule applies if your turnover crossed this ₹5 Crore limit in any single financial year from 2017-18 onwards. It is mandatory for all your B2B supplies and for exports out of the country.

What are the rules for invoice under GST?

The invoice should contain description, quantity and value & such other prescribed particulars under rule 46 of CGST Rules, 2017. An invoice or a bill of supply need not be issued if the value of the supply is less than Rs. 200/- subject to specified conditions. Under GST a tax invoice is an important document.

How to cancel a B2C invoice?

How to Cancel an Invoice in GSTR 1

1. Go to your GSTR-1 return section on the GST portal.
2. Locate the invoice details under the B2B or B2C sections.
3. Add a credit note linked to the original invoice.
4. Mention the correct GSTIN, invoice number, and cancellation reason.
5. Submit the updated GSTR-1 before filing.

What are common invoicing mistakes?

Inconsistently sending invoices – for example, by delaying them or otherwise sending them on a different date each month – is an easy mistake to make. It's understandable, because monthly dates don't fall on the same day of the week. Many will simply pick a Monday morning or a Friday afternoon, and get to work.

What needs to be on an invoice to make it legal?

A unique invoice number. A description of the products or services sold. The quantity and price of each product/service. The date the products/services were delivered.

What is the penalty for not using e-invoicing?

As there is no federal mandate for e-Invoicing, there are currently no specific penalties for non-compliance. However, in states where e-Invoicing is required for B2G transactions, failure to comply could result in delays in payment or rejection of invoices.

What is the new e-invoice rule?

The E-Invoice Applicability Limit in 2025

In 2025, the limit is ₹5 crore. That means if your aggregate turnover in any financial year since 2017-18 is ₹5 crore or more, you need to issue e-invoices for B2B transactions, exports, and certain government supplies.

What are the three types of invoice?

Let's explore three key types of invoices, each tailored to specific scenarios and purposes, and discover when and why to use them:

• Pro forma invoice.
• Interim invoice.
• Final invoice.

What is the invoicing rule?

Invoicing rules determine the accounting period in which the receivable amount is recorded. You can assign invoicing and accounting rules to transactions that you import into Receivables using AutoInvoice and to invoices that you create manually in the Transactions window.

What legally has to be on an invoice?

Invoices - what they must include

the company name and address of the customer you're invoicing. a clear description of what you're charging for. the date the goods or service were provided (supply date) the date of the invoice.

What is the minimum requirement for an invoice?

Regular invoices

• the word 'invoice' – you must not use 'tax invoice'
• your business name.
• your ABN.
• a unique invoice number.
• the date you issued the invoice.
• your contact details (postal address, email, phone)
• a description of the goods or services sold (including quantity and price)
• when and how you want customers to pay.

Can small businesses use e-invoicing?

E-invoicing for small businesses provides a digital-first approach that eliminates manual processes, speeds up payments, and enhances compliance. This guide explores the advantages of e-invoicing, its impact on small business efficiency, and how it compares to traditional invoicing.

What are rule 42 and 43 of GST rules?

CGST Rule 42 deals with the reversal of ITC on inputs and input services, whereas rule 43 deals with the reversal of ITC on capital goods.

Who is exempt from 1% cash payment in GST?

The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.

How much turnover is required for an e-invoice?

As of now, any business with an aggregate turnover of ₹5 crore or more in any financial year since FY 2017-18 must generate e-invoices. It is called the e-invoice applicability limit. So if your business crossed ₹5 crore in turnover even once in the past few years, e-invoicing is mandatory for you now.

Who needs not comply with e-invoicing?

According to Rule 48(4), the following classes of people are exempt from the e-invoice mandate and need not generate an e-invoice under GST. Banks, Insurance Companies, and Financial Institutions including but not limited to NBFCs. Supplier of Services by way of admission to the exhibition of films.