Applying GST on Purchase Transactions

To apply India GST on a purchase transaction:

1. Create a new purchase transaction.

2. Select a vendor.

3. Under the India Tax Information section, fill out the following fields:

   1. In the Place of Supply field, select the place of supply of the transaction. This determines if the transaction is intrastate or interstate, and which tax (SGST, CGST, or IGST) applies.

      If you leave this field blank, the SuiteApp will automatically populate it based on the state code in your subsidiary’s main address.

   2. In the Nature of Document field, select the document type based on the transaction. The selected document type appears in the List of Documents Issued when you file GSTR1. This field is only for posting transactions like bills and vendor credits.

      • Invoices for inward supply from unregistered person – Select this value for bill transactions.

      • Debit Note – Select this value for vendor credit transactions.

        In the Reason for Issuing Note field, select the reason for issuing a debit note.

4. Add items or expenses to this transaction.

5. After you add line items, check the India HSN or SAC Code column and update it if required. If there’s no code for a line item, edit the item record and set a default code.

   Note:

   To calculate GST, you need an HSN or SAC code for every line item on the transaction.

   For more information, see Assigning Default India HSN and SAC Codes to Item Records.

6. In the India Tax UQC column, check the UQC unit for the items you picked. This field shows the default UQC units for those items.

7. In the India Tax Nature column, check the tax nature for the items you picked. This field shows the default tax nature for those items.

   Note:

   The India Tax Nature value is required for transactions with imported goods or services when you file the GSTR3B tax report.

   For more information, see Assigning India Tax Nature to Items.

8. Click the Billing subtab.

9. In the Billing Address section, make sure the entity’s default billing address is populated. If not, enter the billing information.

10. Under the India Tax Details section, fill out the following fields:

    1. In the Port Code field, select the code for the port where goods were exported. If this is for importing services, leave it blank.

    2. In the Bill of Entry of Number field, enter the bill of entry number.

    3. In the Bill of Entry Date field, enter the date of the bill of entry. You can also click the Pick icon next to the field to pick a date from the calendar.

    4. In the Bill of Entry Value field, enter the total value of the bill of entry.

11. Enter any other details you need for this transaction.

12. To preview the calculated tax, click Preview Tax.

    When you preview tax, the SuiteApp determines the correct nexus for the transaction and uses it to calculate taxes. After that, the tax details show up on the Tax Details subtab of the transaction record.

13. Click Save.

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