Sales to registered or unregistered customer
Sales to a registered customer are known as B2B sales, sales to an unregistered customer are known as B2C sales. There's no difference in computation of tax for a B2B and B2C sales. However, they're required to be reported separately in GSTR-1.
Process of sales to registered or unregistered customer has been explained in this document.
Create a sales invoice
- Choose the
icon, enter Sales Invoice, and then choose the related link. - Select Customer on Sales Invoice header, GST customer type should be Registered or Unregistered.
- Select Item Code for goods or G/L Account for service sales on Sales Invoice line. GST Group Code, HSN/SAC Code shouldn't be blank on the item or G/L account.
For example, there's a sales invoice for INR 10,000 and 18% GST (that is, 9% CGST and 9% SGST/UTGST in case of Intra-State or Intra-Union Territory transaction or 18% IGST in case of Inter-State transaction) has to be charged on the invoice amount.
GST calculation appears in the Fact Box as following:
Component Amount GST Base Amount 10,000 CGST 900 SGST 900 IGST 1800 GL Entries for Intra-State or Intra-Union Territory sale of goods to registered or unregistered customer are as following:
Particulars Amount Customer Account 11,800 SGST/UTGST Payable Account - 900 CGST Payable Account - 900 Sales Account - 10000 GL Entries for Inter-State sale of goods to registered or unregistered customer are as following:
Particulars Amount Customer Account 11,800 IGST Payable Account - 1800 Sales Account - 10000 GL Entries for Intra-State or Intra-Union Territory sale of services to registered or unregistered customer are as following:
Particular Amount Customer Account 11,800 SGST/UTGST Payable Account - 900 CGST Payable Account - 900 Sales Account - 10000 GL Entries for Inter-State sale of services to registered or unregistered customer are as following:
Particular Amount Customer Account 11,800 IGST Payable Account - 1800 Services Account - 10000
Tipp
System automatically updates 'Nature of Supply' for Registered customer as B2B and for Unregistered customer as B2C.