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

1. Choose the icon, enter Purchase Invoice, and then choose the related link.
2. Select Vendor on Purchase Invoice header, GST vendor type should be Registered.
3. 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.
4. GST Credit option can be changed on invoice line.

For example, invoice will be 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 will appear 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, will be 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 is not available, will be 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, will be 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 is not available, will be 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, will be 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 is not available, will be 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, will be 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 is not available, will be as following:

  Particulars	Amount
  Services Account	11800
  Vendor Account	-11800

• GL Entries for the Intra-State purchase from registered vendor (reverse charge), will be 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, will be 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, will be 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, will be 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, will be 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 is not available, will be as following:

  Particulars	Amount
  Fixed Asset Increases during the Year	11800
  Vendor Account	-11800

Tip

In case of Inter-State purchase, IGST will be 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, will be 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 is not available, will be as following:

  Particulars	Amount
  Purchase Account	11800
  Vendor Account	-11800

Tip

In case of Inter-State purchase, IGST will be calculated.

See Also

Purchase from Unregistered Vendor (Reverse Charge)

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