Complete Guide to GST for B2B Traders in India: Rates, Rules & Compliance 2026

GST for B2B Trading: An Overview

Goods and Services Tax (GST) is the most important tax consideration for B2B traders in India.

GST Rates for B2B Products

• 5% GST: Basic essentials, fertilizers
• 12% GST: Processed foods, computers, mobile phones
• 18% GST: Most industrial goods, chemicals, machinery, electronics
• 28% GST: Luxury items, cement, automobiles

Input Tax Credit (ITC) for Traders

One of the biggest advantages of B2B trading under GST is the ability to claim Input Tax Credit. When you purchase goods, the GST paid becomes available as credit against your output GST liability.

Key Compliance Requirements

1. GST Registration: Mandatory for turnover above ₹40 lakh
2. GST Returns: Monthly (GSTR-3B, GSTR-1) and Annual (GSTR-9) filing
3. E-Invoicing: Mandatory for businesses with turnover above ₹5 crore
4. E-Way Bill: Required for transportation of goods above ₹50,000
5. HSN Code: Must mention HSN codes on all invoices

All transactions on Sehdev Commerce include auto-generated GST invoices and HSN code mapping. Start trading today.