B2C large invoice limit in GST: GSTR-1 Table 5 rules

When you supply goods or services to unregistered consumers (B2C), the standard filing rule is consolidated rate-wise disclosure. You aggregate all sales by tax rate and state code instead of typing each customer receipt into the portal. However, high-value inter-state consumer transactions follow a stricter statutory exception. The GST portal requires invoice-wise reporting for these sales in Table 5 of Form GSTR-1 to monitor destination tax distribution across state boundaries.

A frequent compliance trap catches retail and wholesale businesses selling high-value goods like jewellery, electronics, luxury furniture, or industrial supplies. When an accountant sees an intra-state counter sale of ₹3,00,000 or ₹5,00,000 to a retail walk-in customer, they often look for an invoice-level table in Form GSTR-1 and mistakenly enter it into Table 5. Doing so violates return architecture, inflates integrated tax liabilities, and triggers automated scrutiny notices from the tax department.

Statutory architecture of Rule 59(4) and the definition of B2C large

The legal framework for furnishing outward supply details is established by Section 37 of the Central Goods and Services Tax Act read with Rule 59 of the CGST Rules. Sub-rule (4) of Rule 59 defines the exact reporting structure for different categories of outward supplies on the GST portal:

• Clause (a) of Rule 59(4): Requires invoice-wise details of all inter-state and intra-state supplies made to registered persons. These are standard B2B transactions entered in Tables 4A, 4B, 4C, 6B, and 6C.
• Clause (b) of Rule 59(4): Requires invoice-wise details of inter-state supplies made to unregistered persons with invoice value exceeding the prescribed threshold. These represent B2C Large invoices reported in Table 5 (tiles 5A and 5B).
• Clause (c) of Rule 59(4): Requires consolidated rate-wise details of all intra-state supplies made to unregistered persons for each tax rate, alongside consolidated state-wise summaries of inter-state supplies to unregistered persons below the threshold. These appear in Table 7 (B2C Others).

The three criteria that define a B2C large invoice

For an invoice to qualify as B2C Large and require individual line-item disclosure in Table 5, it must simultaneously satisfy three cumulative tests:

1. Unregistered recipient: The buyer does not hold an active GSTIN, or has not provided a valid GSTIN on the invoice. If the customer provides an active 15-digit GSTIN, the transaction is B2B and belongs in Table 4, regardless of value.
2. Inter-state supply: The place of supply (POS) determined under Section 10 or Section 12 of the Integrated Goods and Services Tax Act is different from the state of the supplier. The transaction attracts Integrated Tax (IGST).
3. Invoice value exceeds ₹1,00,000: The gross invoice value, including all taxes and duties, is strictly greater than ₹1,00,000 (not greater than or equal to). An invoice of exactly ₹1,00,000 remains in Table 7.

If any single one of these three conditions is missing, the invoice is not a B2C Large transaction:

• If the sale is intra-state (POS equals supplier state), it belongs in Table 7 even if the invoice value is ₹50,00,000.
• If the sale is inter-state but the invoice value is ₹85,000, it belongs in Table 7 as a consolidated state-level entry.
• If the buyer provides a valid GSTIN, it belongs in Table 4 even if the invoice value is ₹1,500.

“Table 5A, 5B - B2C (Large) Invoices : To add an invoice for taxable outwards supplies to a consumer, where place of supply is other than the State where supplier is located (Inter-state supplies) and invoice value is more than Rs. 1 lakh.”
Source: GSTN User Manual on Creation of Outward Supplies Return in Form GSTR-1

Why intra-state sales never belong in Table 5

The technical architecture of the GST common portal directly enforces statutory provisions. When navigating Table 5A and 5B on the portal, three technical constraints prevent intra-state entry:

1. Mandatory inter-state POS selection: The Place of Supply drop-down menu in Table 5 restricts selection to states other than your home registration state. The portal validation logic blocks saving any record where the POS matches the supplier GSTIN state prefix.
2. Absence of CGST and SGST tax heads: Table 5 schema only captures integrated tax (IGST) columns alongside taxable value and cess. It does not provide input cells for Central Tax (CGST) or State/UT Tax (SGST). Entering an intra-state sale in Table 5 forces an accountant to misclassify domestic CGST and SGST as IGST.
3. Destination-based revenue settlement: In India's GST framework, IGST collected on inter-state sales is apportioned between the Centre and the destination state where consumption occurs. Table 5 provides the line-item audit trail for high-value consumer movements across borders. In intra-state sales, both supplier and consumer share the same jurisdiction, meaning no inter-state tax transfer is needed. The government tracks these through consolidated Table 7 summaries.

Worked example: sorting five retail and consumer transactions

To understand practical table routing under current statutory rules, consider a registered luxury lifestyle and hardware retailer based in Pune, Maharashtra (GSTIN state code 27). During October 2026, the business issues five distinct tax invoices:

This breakdown highlights the exact boundary lines:

• INV-501: The invoice total is ₹4,72,000. Despite exceeding both the ₹1,00,000 and older ₹2,50,000 thresholds, the supply is intra-state (Maharashtra to Maharashtra). It is pooled into Table 7 under the 18% tax bucket.
• INV-502: The invoice total is ₹1,41,600 and the destination is Gujarat. It meets all three criteria and must be entered line by line in Table 5A.
• INV-503: The invoice total is ₹88,500 to Karnataka. Because the gross value is below ₹1,00,000, it is reported in Table 7 under the Karnataka state group at 18%.
• INV-504: The taxable value is only ₹90,000, but adding 18% IGST brings the total invoice value to ₹1,06,200. Because the threshold evaluation depends on the gross invoice amount, this transaction crosses ₹1,00,000 and must be entered in Table 5A.
• INV-505: The purchaser holds an active GST registration. It is an outward B2B supply reported in Table 4A, enabling the buyer to claim input tax credit in their GSTR-2B.

Step-by-step reporting in Form GSTR-1

How to report B2C large invoices in Table 5

1. Log in to the GST common portal with your credentials.
2. Navigate to Services > Returns > Returns Dashboard.
3. Select the relevant financial year and return period, then click Search.
4. Open the Form GSTR-1 tile and select tile 5A, 5B - B2C (Large) Invoices.
5. Click Add Details.
6. Select the POS (Place of Supply state code) of the destination state from the drop-down list.
7. Enter the unique Invoice Number and Invoice Date.
8. Enter the gross Total Invoice Value in rupees.
9. In the item details section below, enter the Taxable Value against the applicable GST rate. The system automatically populates the Integrated Tax amount.
10. Click Save. The invoice will appear in the processed records summary.

How to report intra-state consumer sales in Table 7

1. From the main GSTR-1 return dashboard, click on tile 7 - B2C (Others).
2. Click Add Details.
3. In the POS field, select your home registration state code.
4. Enter the cumulative Taxable Value for all intra-state unregistered sales made at that tax rate during the tax period.
5. Select the Rate from the drop-down menu. The portal calculates the Central Tax and State Tax automatically.
6. Click Save. If you sell goods or services at multiple tax slabs (such as 5%, 12%, and 18%), repeat the step to add a separate summary row for each tax rate under your home state.

Departmental scrutiny, DRC-01B notices, and tax-head mismatch risks

Allocating transactions to the wrong table in Form GSTR-1 is not a harmless clerical error. It sets off automated departmental mismatch routines:

In addition, departmental audit teams and automated risk parameters flag accounts during scrutiny under Section 61 via Form GST ASMT-10 for the following discrepancies:

• E-way bill place of supply mismatches: Under Rule 138 of the CGST Rules, inter-state movements of goods exceeding ₹50,000 require an electronic way bill in Form GST EWB-01. Automated departmental analytics cross-verify the place of supply and delivery addresses declared in Part A of e-way bills against invoice-level entries in Table 5. If an e-way bill indicates an inter-state movement over ₹1,00,000 but the invoice is omitted from Table 5, or if an intra-state e-way bill is matched against a Table 5 IGST declaration, scrutiny notices are generated.
• Tax paid under wrong head (Section 77 CGST Act): If tax is erroneously discharged as IGST instead of CGST/SGST, Section 77 of the CGST Act and Section 19 of the IGST Act state that the taxpayer cannot be charged interest on the correct tax subsequently paid. However, the business must pay the correct taxes into the government account first before applying for a cash refund of the wrongly paid tax, causing severe temporary working capital strain.
• Dynamic QR code non-compliance: While B2C invoices are exempt from electronic invoicing (IRN) under Rule 48(4), registered businesses with aggregate turnover exceeding ₹500 Crore must print a Dynamic QR Code on B2C tax invoices per the sixth proviso to Rule 46 read with Notification No. 14/2020-Central Tax. The dynamic QR code must contain supplier details, invoice number, and payment information.

E-way bill linking and buyer reconciliation implications

The distinction between B2B and B2C reporting carries fundamental implications for supply chain reconciliation:

E-way bill generation for unregistered consumers: When transporting goods sold to an unregistered consumer where the consignment value exceeds ₹50,000, the supplier must generate an e-way bill under Rule 138. In the consignee field of Form GST EWB-01, the supplier selects "URP" (Unregistered Person). For inter-state consignments above ₹1,00,000, the e-way bill details directly correspond to the line item in GSTR-1 Table 5. Tax officers intercepting vehicles verify that the tax invoice, the e-way bill, and the return classification align perfectly.

Buyer input tax credit and GSTR-2B: An invoice entered into Table 5 or Table 7 does not generate input tax credit for anyone. The GST system treats all supplies in Tables 5 and 7 as consumer sales, meaning no data flows to any buyer's Form GSTR-2B or GSTR-2A. If a commercial buyer purchases equipment or stock but fails to supply their GSTIN at the time of sale, the seller will report it under Table 5 or Table 7. Under Rule 36(4) of the CGST Rules, the buyer cannot claim ITC on that invoice because it will never appear in their GSTR-2B. If the buyer subsequently requests GST credit, the seller must amend the return by reducing Table 5 or Table 7 and adding the transaction to B2B Table 4 with the buyer's GSTIN.

How to correct errors if an intra-state sale was reported in Table 5

If your accounting team previously entered high-value intra-state invoices into Table 5 in error, execute this five-step rectification process:

1. Zero out the invoice in Table 9A: In the GSTR-1 of the subsequent tax period, navigate to tile 9A - Amended B2C (Large) Invoices. Select the original financial year, enter the original invoice number, and amend the taxable value and integrated tax amount to zero.
2. Add the taxable value to Table 7: In the same tax period, open Table 7 (B2C Others) and add the omitted taxable value and corresponding taxes (CGST and SGST) under your home state summary row.
3. Adjust tax liability in Form GSTR-3B: Ensure that your outward tax liability in Form GSTR-3B for the current period reflects the downward adjustment in IGST and the correct liability in CGST and SGST. Pay the differential central and state tax along with applicable interest under Section 50 if the tax was unpaid.
4. Apply for refund of wrong tax under Section 77: File an application in Form GST RFD-01 on the GST portal under the category "Refund on account of change in POS (inter-State to intra-State and vice versa)" in terms of Section 77 of the CGST Act and Rule 89(1A) of the CGST Rules to recover the mistakenly deposited IGST.
5. Disclose in Annual Return Form GSTR-9: If the correction is completed in the subsequent financial year within the time limits prescribed under Section 39(9), disclose the reduction in Table 11 and the addition in Table 10 of Form GSTR-9.

Common compliance mistakes to avoid

• Entering customer PAN or Aadhaar in B2B tables: When issuing an invoice over ₹1,00,000 to an unregistered individual, do not attempt to enter their PAN or Aadhaar into Table 4A. Table 4 validates strictly against the GSTN database and rejects any entry that does not possess a valid 15-character GSTIN.
• Confusing Section 269ST cash limits with GST reporting thresholds: Section 269ST of the Income-tax Act prohibits receiving cash of ₹2,00,000 or more from a person in a day. That is an income tax compliance restriction. If a retail customer pays ₹4,00,000 via RTGS or debit card for an intra-state purchase, it is entirely legal under income tax and belongs squarely in Table 7 under GST.
• Evaluating taxable value instead of invoice value: The B2C Large statutory test is based on the total invoice value (taxable value plus GST), not taxable value alone. Always evaluate the final billing total on the face of the invoice.
• Reporting credit notes in Table 5: Credit and debit notes issued against B2C Large supplies are not netted off inside Table 5. They must be reported in Table 9B (Credit/Debit Notes Unregistered) of Form GSTR-1.

Reporting outward supplies accurately protects your business from penalties. For more details on filing deadlines and procedural workflows, see our guides on GSTR-1 due dates, GSTR-1 late fee rules, how to file GSTR-1 step by step, and GSTR-1 meaning: tables and how it feeds your GSTR-2B.

Frequently asked questions

Last checked: 26 October 2026. Sources: CBIC CGST Rule 59, CBIC Notification 12/2024-Central Tax, GSTN GSTR-1 User Manual, CBIC CGST Rule 138, CBIC CGST Rule 36.