ITC must be claimed within the statutory time limits.
These are Assets (Current Assets). Since you can offset this tax against your future sales tax, it is not an expense.
If you tell me which you use (like Tally, QuickBooks, or SAP), I can provide the specific navigation steps for that system. 18 - Purchase GST Entrypdf
Ensure the correct code is mentioned to justify the 18% rate.
📍 Always reconcile these entries with your GSTR-2B statement before filing your monthly returns to ensure the supplier has uploaded the invoice. ITC must be claimed within the statutory time limits
This is the total invoice value you owe the supplier. Important Checklist
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 If you tell me which you use (like
When you buy goods or services worth at an 18% GST rate , your journal entry will look like this: Account Head Purchase A/c Input CGST (9%) Input SGST (9%) To Creditor / Bank A/c $11,800 Key Components