New GST Rule from May 2025 Separate B2B and B2C Sales in GSTR-1
Starting May 2025, taxpayers filing GSTR-1 must clearly distinguish between B2B (Business-to-Business) and B2C (Business-to-Consumer) outward supplies. This change is aimed at improving data accuracy for e-invoicing, input tax credit matching, and auto-population of GSTR-2B.
This update aligns with the government’s broader GST compliance drive under Rule 59 and Rule 61 of the CGST Rules, 2017.
What Has Changed?
As per the CBIC’s new mandate, separate reporting of B2B and B2C transactions is now compulsory under Table 12 (HSN Summary) of GSTR-1.
| Field | Old Format | New Format (from May 2025) |
|---|---|---|
| HSN Summary Table | Consolidated reporting of all sales | Separate sections for B2B & B2C supplies |
| B2C (Consumer Sales) | Clubbed with overall outward supplies | Reported distinctly |
| B2B (Registered) | Previously identifiable via GSTIN | Explicitly separated |
| GSTR-2B Matching | Prone to mismatch in ITC claims | Better alignment and traceability |
Why the Change?
- Enhanced ITC Accuracy:
Enables buyers to claim correct input tax credit. - E-invoicing Compliance:
Helps in validating invoice-level data in real time. - Data Analytics by GSTN:
Enables tax authorities to better detect evasion patterns.
Who Must Comply?
- All regular taxpayers filing GSTR-1
- Monthly and quarterly filers under QRMP scheme
- Businesses involved in both B2B and B2C transactions
Note: Composition dealers filing CMP-08 are not affected.
How to File GSTR-1 Correctly Post May 2025
- Identify and segregate invoices as B2B (with valid GSTIN) and B2C (unregistered consumers)
- Use separate sections for each under Table 12
- Ensure correct HSN-wise breakup in both categories
- Cross-check entries with sales register and invoice books
- Submit through GSTN portal or your GSP-compliant software
Legal References
- CGST Rule 59 – Details on furnishing GSTR-1
- Notification No. 14/2025 – Central Tax, dated 22.04.2025
- CBIC Tweet/FAQ confirming format changes
- Alignment with Section 37 of CGST Act (Furnishing of Outward Supplies)
Expert Tip
“Many filers rely on automation tools — but manual review of classification is critical this month. Avoid late filing penalties and mismatches in GSTR-2B by ensuring accurate segregation.”
— GST Consultant, Efiletax Team
Benefits of Compliance
- Accurate ITC reflection for your B2B clients
- Reduced notice risk from GST department
- Seamless auto-population in GSTR-2B & ANX forms
- Better data trail for e-way bill verification
FAQ
Q1. Is this rule applicable to NIL filers or composition dealers?
No. It applies only to regular GSTR-1 filers (monthly or quarterly).
Q2. What if I report B2B sales under B2C?
This can lead to ITC mismatches, compliance notices, and even audit flags. Ensure accurate reporting.
Q3. Will the GSTN portal guide me through the new format?
Yes. The updated GSTR-1 form layout is now live with pre-defined separate rows for B2B and B2C HSNs.
Final Thoughts
This GST rule is a small change with big compliance impact. Take extra care while filing GSTR-1 from May 2025 onwards. Efiletax offers full support for GST return filing, ITC reconciliation, and error-free compliance.
👉 Need Help? Let Efiletax experts handle your GST returns. Talk to us today
Summary
From May 2025, taxpayers must report B2B and B2C sales separately in GSTR-1’s Table 12 (HSN Summary). This GST rule improves ITC accuracy, supports e-invoicing, and reduces mismatches. Learn who must comply, filing steps, and legal references in this Efiletax blog.