1. Country-Specific Features
  2. India Help Topics
  3. India Localization SuiteTax Engine
  4. Goods and Services Tax
  5. Applying India GST on Purchase Transactions

Applying India GST on Purchase Transactions

The India Localization SuiteTax Engine SuiteApp supports GST calculation for the following purchase transaction types:

Watch the following video to understand how to calculate GST on sales and 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, complete the following fields:

    1. In the Place of Supply field, select the place of supply of the transaction. The value in this field determines whether the transaction is an intrastate or interstate supply. It also determines the tax component (SGST, CGST, or IGST) that applies to the transaction.

      If you leave this field blank, the SuiteApp will automatically assign a value based on the state code in subsidiary’s main address.

    2. In the Nature of Document field, select the nature of document based on transaction type. The value in this field is declared in the List of Documents Issued section when you file the GSTR1 tax report. This field is only available for posting transactions such as 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 for this transaction.

  5. After entering line items, review the information in the India HSN or SAC Code column and change if necessary. If there is no HSN or SAC code selected for the line item, edit the item record and assign a default code.

    Note:

    To calculate GST, you must have an HSN or SAC code assigned for each line item on a transaction.

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

  6. In the India Tax UQC column, review the UQC unit for the items selected. This field populates the default UQC units of the items.

  7. In the India Tax Nature column, review the tax nature for the items selected. This field populates the default tax nature of the items.

    Note:

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

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

  8. Click the Billing subtab.

  9. In the Billing Address section, ensure that the entity’s default billing address is populated. Otherwise, you must enter the entity’s billing information.

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

    1. In the Port Code field, select the code of the port through which goods were exported. If this transaction is for import of services, leave this field empty.

    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 date field and select a date in the calendar.

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

  11. Enter other details required for this transaction.

  12. To preview calculated tax, click Preview Tax.

    When you preview tax, the SuiteApp determines the appropriate nexus for the transaction and uses the tax engine associated with the nexus to calculate the taxes. After tax is calculated, the tax details appears on the Tax Details subtab on the transaction record.

  13. Click Save.

Note:

When importing transactions through CSV Import or SuiteScript, you must select values in the Nexus and Place of Supply fields for tax calculation.

Viewing GST Cess

You can view the GST Cess calculated under the Details column on the Tax Details subtab. The following example displays the format in which GST Cess appears on the Details column.

Advol: 25, Non Advol: 0

GST Cess is calculated with 5%.

In the above example, Advol and Non Advol represent the amount calculated against the cess percentage and cess rate per unit set in the tax rate rule. The GST Cess percentage is determined from the value set in the tax rate rule.

Overriding Tax Details

India GST enables you to override the tax information about the Tax Details subtab, if you have the Tax Details Tab permission and the permission level is set to at least Edit . For more information about SuiteTax permissions, see Roles and Permissions in SuiteTax.

To override the tax information:

  1. Click the Tax Details subtab.

  2. Check the Tax Details Override box.

  3. In the Taxes section, select the Tax Details Reference ID that you want to modify.

  4. Modify the values in the Tax Type, Tax Code, Tax Basis, Tax Rate, and Tax Amount columns for existing tax lines. All tax information fields are required.

  5. Click OK.

You cannot preview tax if the Tax Details Override box is checked. If you clear the Tax Details Override box, the tax calculated will be deleted.

For more information about using the Tax Details Override feature, see Tax Details on Transactions in SuiteTax.

Related Topics

General Notices