Ensure the correct code is mentioned to justify the 18% rate.
These are Assets (Current Assets). Since you can offset this tax against your future sales tax, it is not an expense.
This represents the base value of the goods (tax-exclusive). 18 - Purchase GST Entrypdf
📍 Always reconcile these entries with your GSTR-2B statement before filing your monthly returns to ensure the supplier has uploaded the invoice.
To record an intra-state purchase (GST within the same state) in your accounting system, follow this guide for a standard 18% GST entry. Ensure the correct code is mentioned to justify the 18% rate
If the supplier is from a different state, replace CGST/SGST with IGST (18%) . Tax Calculation Formula Base Amount: Total Invoice Value / (1 + Tax Rate) GST Amount: Base Amount × 18% CGST/SGST: GST Amount ÷ 2
ITC must be claimed within the statutory time limits. This represents the base value of the goods (tax-exclusive)
If you tell me which you use (like Tally, QuickBooks, or SAP), I can provide the specific navigation steps for that system.