Purchase from registered vendors
A registered vendor is a person registered with GST authorities. For a registered vendor, on the vendor card, update the following fields:
- GST Vendor Type as Registered
- GST Registration No
- State Code
For purchases from registered vendors for services attracting reverse charge, purchasers are required to pay the GST tax, to the Government.
If exempted goods and services are purchased from registered vendor, then no GST is to be paid to supplier or to the Government.
Process for purchase from a registered vendor has been explained in this document.
Create a purchase invoice
- Choose the
icon, enter Purchase Invoice, and then choose the related link. - Select Vendor on Purchase Invoice header, GST vendor type should be Registered.
- Select Item Code for goods, G/L Account for Service purchase, Fixed Asset for Fixed Asset purchase and Charge (Item) for Item Charge on Purchase Invoice line. GST Group Code, HSN/SAC Code, and GST Credit value should be selected as Availment if the tax input credit is available or else Non-Availment should be selected on the Item or G/L Account.
- GST Credit option can be changed on invoice line.
For example, invoice is issued for INR 10,000 on which 18% GST (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.
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 purchase of goods from registered vendor where input tax credit is available are as following:
Particulars Amount Purchase Account 10,000 SGST/UTGST Receivable Account 900 CGST Receivable Account 900 Vendor Account -11800 GL Entries for Intra-State or Intra-Union Territory purchase of goods from registered vendor where input tax credit isn't available are as following:
Particulars Amount Purchase Account 11,800 Vendor Account -11800 GL Entries for Intra-State or Intra-Union Territory purchase of services from registered vendor where input tax credit is available are as following:
Particulars Amount Services Account 10,000 SGST/UTGST Receivable Account 900 CGST Receivable Account 900 Vendor Account -11800 GL Entries for Intra-State or Intra-Union Territory purchase of services from registered vendor where input tax credit isn't available are as following:
Particulars Amount Services Account 11,800 Vendor Account -11800 GL Entries for Inter-State purchase of goods from registered vendor where input tax credit is available are as following:
Particulars Amount Purchase Account 10,000 IGST Receivable Account 1800 Vendor Account -11800 GL Entries for Inter-State purchase of goods from registered vendor where input tax credit isn't available are as following:
Particular Amount Purchase Account 11800 Vendor Account -11800 GL Entries for Inter-State purchase of services from registered vendor where input tax credit is available are as following:
Particulars Amount Services Account 10,000 IGST Receivable Account 1800 Vendor Account -11800 GL Entries for Inter-State purchase of services from registered vendor where input tax credit isn't available are as following:
Particulars Amount Services Account 11800 Vendor Account -11800 GL Entries for the Intra-State purchase from registered vendor (reverse charge) are as following:
Particulars Amount Purchase or Services Account 10000 CGST Receivable Account (Interim) 900 SGST Receivable Account (Interim) 900 CGST Payable Account (Interim) -900 SGST Payable Account (Interim) -900 Vendor Account -10000 GL Entries for the Inter-State purchase from registered vendor (reverse charge) if time of supply is considered on the basis of payment are as following:
Particulars Amount Purchase or Services Account 10000 IGST Receivable Account (Interim) 1800 IGST Payable Account (Interim) -1800 Vendor Account -10000 GL Entries on payment to registered vendor (reverse charge) against Intra-State purchase invoice are as following:
Particulars Amount Vendor Account 10000 CGST Payable Account (Interim) 900 SGST Payable Account (Interim) 900 CGST Payable Account -900 SGST Payable Account -900 Bank Account -10000 GL Entries on payment to registered vendor (reverse charge) against Inter-State purchase invoice are as following:
Particulars Amount Vendor Account 10000 IGST Payable Account (Interim) 1800 IGST Payable Account -1800 Bank Account -10000 GL Entries for Intra-State or Intra-Union Territory purchase of fixed asset from registered vendor where input tax credit is available are as following:
Particulars Amount Fixed Asset Increases during the Year 10000 SGST Receivable Account 900 CGST Receivable Account 900 Vendor Account -11800 GL Entries for Intra-State or Intra-Union Territory purchase of fixed asset from registered vendor where input tax credit isn't available are as following:
Particulars Amount Fixed Asset Increases during the Year 11800 Vendor Account -11800
Tipp
In case of Inter-State purchase, IGST is calculated.
GL Entries for Charge Item in case of Intra-State or Intra-Union Territory in purchase transaction from registered vendor where input tax credit is available are as following:
Particulars Amount Purchase Account 10000 SGST Receivable Account 900 CGST Receivable Account 900 Vendor Account -11800 GL Entries for Charge Item in case of Intra-State or Intra-Union Territory in purchase transaction from registered vendor where input tax credit isn't available are as following:
Particulars Amount Purchase Account 11800 Vendor Account -11800
Tipp
In case of Inter-State purchase, IGST is calculated.