GSTR-1 sorts every sale to an unregistered buyer, a consumer without a GSTIN, into one of two buckets. Most Shopify orders are B2CS. A few large inter-state orders are B2CL, and they are reported differently.
What is the B2CL limit?
An invoice is B2CL when all three are true:
- The buyer is not registered under GST (no GSTIN on the order).
- The sale is inter-state: the delivery address is in a different state from yours, so the invoice carries IGST.
- The invoice value is more than ₹1,00,000, counting the tax.
The limit was ₹2,50,000 until July 2024. Notification 12/2024-Central Tax, recommended at the 53rd GST Council meeting, lowered it to ₹1,00,000 from the August 2024 return period.
Everything else sold to consumers is B2CS. That includes a ₹3,00,000 sale to a consumer in your own state: there is no B2CL inside a state, whatever the amount.
How are B2CS and B2CL reported?
| B2CL | B2CS | |
|---|---|---|
| GSTR-1 table | Table 5 | Table 7 |
| Detail | Each invoice: number, date, value, place of supply, rate, taxable value, IGST | Totals for each state and rate: taxable value and tax |
| Credit notes | Reported separately in Table 9B as CDNUR, against the invoice | Netted off inside Table 7 for the same state and rate |
| Corrections | Table 9A (B2CLA), against the original invoice | Table 10 (B2CSA), by state and rate |
Worked examples
Suppose your store is in Tamil Nadu.
| Order | Buyer | Delivered to | Invoice value | Bucket and table |
|---|---|---|---|---|
| 1 | Consumer | Chennai, Tamil Nadu | ₹3,00,000 | B2CS, Table 7 (same state) |
| 2 | Consumer | Bengaluru, Karnataka | ₹1,00,000 | B2CS, Table 7 (not more than ₹1 lakh) |
| 3 | Consumer | Bengaluru, Karnataka | ₹1,00,001 | B2CL, Table 5 |
| 4 | Business with a GSTIN | Mumbai, Maharashtra | ₹2,000 | B2B, Table 4 (registered buyer) |
| 5 | Consumer | Dubai | ₹1,50,000 | Export, Table 6A |
Order 2 is the edge: the rule says more than ₹1 lakh, so an invoice of exactly ₹1,00,000 stays in B2CS.
Is the ₹1 lakh limit with or without GST?
With. The test is on the invoice value, which is the total on the invoice including the tax. A ₹90,000 product at 18% IGST makes an invoice of ₹1,06,200, which is B2CL.
Which state counts?
The delivery state. For a sale to an unregistered person, the place of supply is the address recorded on the invoice (section 10(1)(ca) of the IGST Act). Where an online order has different billing and delivery addresses, CBIC's Circular 209/3/2024-GST says the delivery address is the one that counts. A Shopify order shipped to another state is inter-state even if the buyer's billing address is in yours.
Where do credit notes go?
- On a B2CL invoice: Table 9B, as a CDNUR (credit note to an unregistered person) of type B2CL, quoting the original invoice.
- On a B2CS sale: there is no separate row. Reduce Table 7's figures for the same state and rate in the month you issue the credit note.
Putting consumer credit notes in CDNUR is one of the most common GSTR-1 errors. Only B2CL and export invoices have credit notes there.
Why the split matters
B2CL invoices are listed one by one because they are large enough for the receiving state to want to see them. B2CS is a summary, which is why a store with thousands of orders can still file in minutes. Misplacing an invoice does not usually change the tax you pay, but it gives the wrong state the wrong figures, and a later amendment has to undo it.