Outward supply under GST

The definition

Section 2(83) of the CGST Act defines outward supply, in relation to a taxable person, as supply of goods or services or both, whether by sale, transfer, barter, exchange, licence, rental, lease or disposal or any other mode, made or agreed to be made by such person in the course or furtherance of business.

It is the mirror image of inward supply. Your outward supply is your customer's inward supply, which is why errors in GSTR-1 affect your customer's ITC.

What gets reported

• Taxable supplies to registered persons (B2B), invoice-wise in GSTR-1.
• Supplies to unregistered persons (B2C), with large inter-state invoices shown separately.
• Exports and SEZ supplies, with or without payment of IGST.
• Nil rated, exempt and non-GST supplies.
• Credit notes, debit notes and amendments.
• Advances received for services and their adjustment.

Why accuracy matters

GSTR-3B output liability is auto-populated from GSTR-1 or GSTR-1A and is locked, so corrections must be made through GSTR-1A before filing GSTR-3B, or in a later period. If liability in GSTR-1 exceeds GSTR-3B beyond the notified limit, a DRC-01B intimation under Rule 88C follows. Reconcile your sales register with GSTR-1 every month.

Get it handled for you

Want your returns filed and reconciled every month without mismatch notices? Our team handles it end to end. Call or WhatsApp +91 63677 44602, or use the form below.

This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.