Please select Accounts->GST Transactions->GST Input (Purchase) option. You have to enter purchase from unregistered dealers also (other than goods) using this option.
To get input credit on transactions other than purchase or sales, you can enter them using Accounts - GST Transactions option. Please note that input credit is not available for following under section 17(5) and you may continue to enter these transactions as earlier in Accounts- voucher entry option.
You have to add supplier in Supplier Master for the transaction you want to receive input credit. Similarly you will have to add HSN in HSN master for the Products/services you want to credit
Select Supplier, enter invoice no., date, invoice amount.
Please select appropriate tax code PG0/PG1 (5%)/PG2 (12%)/PG3 (18%)/PG4 (28%).
Please enter billing head wise detail entries for purchases of services such as telephone exp./ products other than goods such as stationery/ capital goods such as furniture etc. You will have to create billing heads using System->Master Data option and enter qty and amount with tax details. If there are more than one entry, you can do the same here. Use remarks column to write details if required. You have to enter HSN wise data in this screen. Each billing head is related to one HSN and one tax rate. It is defined by you in billing head master. GST input will be claimed in GSTR 2 based on these details.
Please select Credit Account as Cash (if paid in cash), Bank (If paid by cheque) or Supplier a/c (Credit) if to be paid later.
It will create appropriate voucher in General Ledger and you do not need to do separate voucher entry.
It will reflect in GSTR2 (for Reverse Charge Entries).
If the supplier has not charged GST but it is payable under Reverse Charge Mechanism (e.g. legal services by a lawyer), please see following article for details.
There is one more option GST Output, which can be used to raise invoice other than goods, such as commission for C&F.
Following transactions are not eligible for input credit
(5) Notwithstanding anything contained in sub-section (1) of section 16 and subsection
(1) of section 18, input tax credit shall not be available in respect of the following,
(a) motor vehicles and other conveyances except when they are used––
(i) for making the following taxable supplies, namely:—
(A) further supply of such vehicles or conveyances ; or
(B) transportation of passengers; or
(C) imparting training on driving, flying, navigating such vehicles
(ii) for transportation of goods;
(b) the following supply of goods or services or both:—
(i) food and beverages, outdoor catering, beauty treatment, health services,
cosmetic and plastic surgery except where an inward supply of goods or services
or both of a particular category is used by a registered person for making an
outward taxable supply of the same category of goods or services or both or as
an element of a taxable composite or mixed supply;
(ii) membership of a club, health and fitness centre;
(iii) rent-a-cab, life insurance and health insurance except where ––
(A) the Government notifies the services which are obligatory for an
employer to provide to its employees under any law for the time being in
(B) such inward supply of goods or services or both of a particular
category is used by a registered person for making an outward taxable
supply of the same category of goods or services or both or as part of a
taxable composite or mixed supply; and
(iv) travel benefits extended to employees on vacation such as leave or
home travel concession;
(c) works contract services when supplied for construction of an immovable
property (other than plant and machinery) except where it is an input service for further
supply of works contract service;
(d) goods or services or both received by a taxable person for construction of an
immovable property (other than plant or machinery) on his own account including
when such goods or services or both are used in the course or furtherance of business.
Explanation.––For the purposes of clauses (c) and (d), the expression
“construction” includes re-construction, renovation, additions or alterations or repairs,
to the extent of capitalisation, to the said immovable property;
(e) goods or services or both on which tax has been paid under section 10;
(f) goods or services or both received by a non-resident taxable person except
on goods imported by him;
(g) goods or services or both used for personal consumption;
(h) goods lost, stolen, destroyed, written off or disposed of by way of gift or free
(i) any tax paid in accordance with the provisions of sections 74, 129 and 130.