B2B and B2C Updates in Tally

Published on: 05-06-2025

B2B and B2C Updates in Tally

Tally (especially TallyPrime) has evolved significantly to comply with the GST regime in India. Understanding the distinction between B2B (Business-to-Business) and B2C (Business-to-Consumer) is crucial for accurate invoicing, taxation, and return filing. Here's a comprehensive overview:

What is B2B in Tally?

Definition:

B2B refers to transactions between two registered businesses — where the buyer possesses a valid GSTIN (Goods and Services Tax Identification Number).

Key Features in Tally:

• GSTIN Required: The buyer must be registered and GSTIN must be entered in the ledger.
• Tax Invoice Generation: Invoices are treated as tax invoices with applicable GST.
• ITC Eligible: The buyer is eligible for Input Tax Credit.
• Auto-Classified in GSTR-1 under the B2B section.
• E-invoicing Enabled for businesses eligible under government rules (usually based on turnover).

 Process in Tally:

1. Create a Party Ledger with GSTIN.
2. Enter a Sales Voucher with applicable tax rates.
3. Tally automatically:
   • Flags it as a B2B invoice
   • Makes it available for GSTR-1 export
   • Prepares JSON for IRP e-invoicing (if enabled)

 E-Invoicing in B2B:

• Mandatory for businesses with turnover above limits (₹5 Cr or ₹10 Cr).
• Tally generates IRN, QR code, and acknowledgement.
• Data sent directly to Invoice Registration Portal (IRP).

What is B2C in Tally?

 Definition:

B2C refers to transactions where the buyer is not registered under GST — typically individual consumers or small businesses.

 Key Features in Tally:

• No GSTIN Required: Customer ledger is created without GSTIN.
• Tax Invoice Issued: Still includes applicable GST, but no ITC to buyer.
• Auto-Classified in GSTR-1 under:
  • B2C (Small): Intrastate or low-value invoices
  • B2C (Large): Interstate invoices exceeding ₹2.5 lakh

 Process in Tally:

1. Create a Customer Ledger without GSTIN.
2. Record a Sales Voucher with appropriate tax rate.
3. Tally flags this as a B2C invoice and places it under the correct GSTR-1 section.

Recent Updates in Tally for B2B/B2C

GST Return Enhancements:

• TallyPrime auto-segregates invoices as B2B/B2C.
• JSON Export directly compatible with GST portal.
• Validation Checks:
  • Missing GSTIN for B2B parties
  • Mismatched state codes

Customisable GST Setup:

• Party-wise GST details
• Default Tax Ledgers at stock or item level
• Optional HSN/SAC auto-fill

Reports & Filing:

• GSTR-1, GSTR-3B, and GSTR Summary reports
• Filter by B2B, B2C, Nil-rated, Exempt, etc.
• Drill-down view to verify invoice classification

E-Way Bill Integration:

• Direct generation of e-way bills for B2B and B2C (above threshold).
• Validates distance, transporter, and invoice data.

Example: B2B Entry in Tally

1. Create Party: ABC Pvt Ltd (GSTIN: 29ABCDE1234F1Z9)
2. Sales Entry:
   • Date: 01-06-2025
   • Item: 10 PCs @ ₹1,000 each
   • GST: 18%
   • Total: ₹11,800
3. Classified As: B2B → GSTR-1 B2B section
4. IRN Generated (if enabled)

 Example: B2C Entry in Tally

1. Create Party: Mr. Ramesh (No GSTIN)
2. Sales Entry:
   • Date: 02-06-2025
   • Item: 5 PCs @ ₹1,000 each
   • GST: 18%
   • Total: ₹5,900
3. Classified As: B2C → GSTR-1 B2C (Small or Large)

 Tips to Manage B2B/B2C in Tally Effectively

• Always check GSTIN validity for B2B clients.
• Regularly review GSTR-1 reports for accuracy.
• Keep e-invoicing enabled if required.
• Use voucher class for auto tax calculation.
• Enable invoice references for easier tracking during audits.