#2: Part 2 - Purchase

Purchase (Inward) Details

The presenter explains how purchase information is recorded for purchase reconciliation and GST reporting, particularly for GSTR-3B and GSTR-9. Accurate purchase data helps businesses reconcile input tax credit (ITC), but an amount appearing in GSTR-2B does not automatically mean it is eligible to claim.

1. Choose the supply type

The supply type determines how the purchase is classified:

• Regular: Ordinary purchases, including B2B and B2C purchases. The presenter also classifies purchases of services from an SEZ as regular.
• Exempt: Purchases of exempt goods.
• Non-GST: Purchases outside the scope of GST.
• IMPG (import of goods): Goods purchased from outside India. The presenter also says goods purchased from an SEZ are classified this way.
• IMPS (import of services): Services purchased from outside India.
• Composition: Purchases from a composition taxpayer.
• Special IGST case: The presenter describes a case where the buyer and seller are in the same state, but the place of supply is elsewhere, and says it should be classified under this option. The subtitle’s label for this category is unclear.

2. Select the document type and enter its details

Document types include invoices, debit notes, credit notes, and bills of entry.

Purchase note treatment is the reverse of sales:

• Add credit notes.
• Subtract debit notes.

A bill of entry is used for imported goods. The presenter describes it as a document issued by Customs when goods enter India.

Enter the document number, date, and total value:

• The document number must not exceed 16 characters.
• Slashes and hyphens are allowed, but other special characters are not.
• According to the subtitles, enter the date in DD/MM format.
• Enter the final value shown on the document.

3. Enter supplier and place-of-supply information

• The buyer’s GSTIN is the recipient’s registered GST number.
• Enter the supplier’s GSTIN for purchases from registered businesses and, as the presenter explains, in relevant cases involving composition taxpayers.
• The supplier’s state is conditional when a supplier GSTIN is provided. For B2C transactions, the presenter says to enter the state so the applicable tax treatment can be determined.
• Place of supply refers to where the buyer received the goods, as described in the presentation.
• If reverse charge applies, mark it accordingly. The presenter says that when it is marked “Yes,” the buyer is liable for the tax, which must be reflected in the manual GSTR-3B filing.

4. Provide import details for imported goods

When the supply type is IMPG, these fields are mandatory:

• Bill-of-entry number
• Bill-of-entry date
• Port code—the code for the port where the goods were received

5. Enter item and tax information

The presenter discusses item-level information such as HSN/SAC code, description, unit of measure, quantity, unit rate, taxable value, other charges, and discount.

• HSN/SAC details are optional for purchases, regardless of whether turnover is above or below ₹5 crore.
• The presenter recommends keeping these details because they may be needed for HSN-wise reporting in GSTR-9 or GSTR-9C.
• Taxable value and tax amounts are important for reconciliation. Enter the tax amounts shown on the bill—such as IGST, CGST, SGST, and applicable cess—because these amounts are needed to determine the credit being considered.
• The presenter describes the tax rate as optional, but says the tax amount should be entered.

6. Mark ITC eligibility

The eligibility field records whether the purchase is being treated as eligible for input tax credit.

• If claiming ITC, mark the item as eligible and classify it under the relevant category described by the presenter: inputs, capital goods, or input services.
• If the purchase is not eligible—for example, because it is for personal use or falls under a restriction mentioned in Section 17(5)—mark it as not eligible.
• An amount appearing in GSTR-2B does not automatically mean the business should claim it. The presenter emphasizes that the decision depends on the purchase’s eligibility.

Speakers and sources featured

• Presenter/trainer: Explains purchase-entry fields, tax treatment, import documentation, and ITC reconciliation.
• Audience participants: The presenter asks the audience a question about bills of entry; no distinct audience response is clearly captured in the subtitles.