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 calculates GST for these 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, 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 on 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.

Note:

When you import transactions with CSV Import or SuiteScript, make sure you select values in the Nexus and Place of Supply fields for tax calculation.

Viewing GST Cess

You can see the GST Cess under the Details column on the Tax Details subtab. The following example shows how GST Cess looks in the Details column.

Advol: 25, Non Advol: 0

GST Cess is calculated with 5%.

In the example, Advol and Non Advol show the amounts calculated using the cess percentage and cess rate per unit from the tax rate rule. The GST Cess percentage is taken from the value you set in the tax rate rule.

Overriding Tax Details

India GST lets you override tax information on the Tax Details subtab if you have the Tax Details Tab permission 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 you want to change.

  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 can't preview tax if the Tax Details Override box is checked. If you clear the box, the calculated tax will be deleted.

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

Related Topics

General Notices