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Identification of b2b and b2c

Balasubramanian V (Dy. Manager) (45 Points)

11 April 2017

hi.. can you pls clarify the following..
there is a requirement in GST to identify whether a dealer is a b2b or b2c .. is there any component like pan number etc. system can identify a customer is b2b or b2c.. thx

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4 Replies

Mahesh Babu (CA Final) (618 Points)
Replied 11 April 2017

B2C and B2B are two forms of commercial transactions.

B2C, which stands for business-to-consumer, is a process for selling products directly to consumers.
B2B, which stands for business-to-business, is a process for selling products or services to other businesses.

The business systems that support B2B or B2C communications, transactions and sales administration differ in complexity, scope, scale and cost, so it is important that you implement the right system for your customers

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 12 April 2017

GST provisions does not use the term B2B or B2C. The law uses the term "registered person". The nature of taxes, invoices, procedures etc. differs when you supply to a registered person. A registered person is required to pay GST on reverse charge method. Definitions of place of supply differs at numerous places depending on the fact as to whether the recipient is a registered person or not.

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CA. GC Swain (CA in Practice) (33 Points)
Replied 27 April 2019

B2C and B2B terminology used for supply of goods and service. B2C, stands for business-to-consumer directly (finally consumed without any furtherance) . Where as B2B, stands for business-to-business for supply of goods or services to other businesses and not for final consumption.

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