Transactions for input service distributor
This article explains purchase invoices and returns for an input service distributor location. The rates and amounts in the posting examples are illustrative.
Purchase transaction with input service distribution location
- [!INCLUDE [open-search](../../includes/open-search.md)] Purchase Invoices, and then choose the related link.
- Select Vendor on Purchase Invoice header.
- Specify Location Code on the invoice header. The location's GST registration number must have Input Service Distributor selected, which updates GST Input Service Distributor on the location.
- Select G/L Account on the invoice line. Select a GST Group Code with GST Group Type set to Service, and check HSN/SAC Code and GST Credit.
For a GST invoice with input service distribution selected, the purchase line validation blocks Item, Fixed Asset, and Charge (Item) lines. Post the service invoice before selecting its entries in a GST distribution document.
For example, service of INR 10000 purchased by Input Services Distributor where input tax credit is available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on the invoice amount.
GST calculation appears in the Fact Box as following:
Component Amount GST Base Amount 10,000 CGST 900 SGST 900 G/L Entries for Intra-State Purchase of Services by Input Service Distributor where Input Tax Credit is available is as following:
Particulars Amount Service Account 10000 CGST Receivable Distributor Account 900 SGST/UTGST Receivable Distributor Account 900 Vendor Account -11800 For example, service of INR 10000 purchased by Input Services Distributor where input tax credit isn't available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on the invoice amount.
GST calculation appears in the Fact Box as following:
Component Amount GST Base Amount 10,000 CGST 900 SGST 900 G/L Entries for Intra-State Purchase of Services by Input Service Distributor where Input Tax Credit isn't available is as following:
Particulars Amount Service Account 10000 CGST Expense Account 900 SGST/UTGST Expense Account 900 Vendor Account -11800 For example, service of INR 10000 purchased by Input Services Distributor where input tax credit is available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on the invoice amount.
GST calculation appears in the Fact Box as following:
Component Amount GST Base Amount 10,000 IGST 1800 G/L Entries for Inter-State Purchase of Services by Input Service Distributor where Input Tax Credit is available is as following:
Particulars Amount Service Account 10000 IGST Receivable Distributor Account 1800 Vendor Account -11800 For example, service of INR 10000 purchased by Input Services Distributor where input tax credit isn't available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on the invoice amount.
GST calculation appears in the Fact Box as following:
Component Amount GST Base Amount 10,000 IGST 1800 G/L Entries for Inter-State Purchase of Services by Input Service Distributor where Input Tax Credit isn't available is as following:
Particulars Amount Service Account 10000 IGST Expense Account 1800 Vendor Account -11800
Purchase return transaction with input service distribution location
- [!INCLUDE [open-search](../../includes/open-search.md)] Purchase Return Orders or Purchase Credit Memos, and then choose the related link.
- Select Vendor on Purchase Return Order or Purchase Credit Memo header
- Specify Location Code on the return order or credit memo header. Check that the location has GST Input Service Distributor selected.
- Select G/L Account on Purchase Return Order or Purchase Credit Memo line for service transaction.
For example, service of INR 10000 returned by Input Services Distributor where input tax credit is available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on credit memo.
GST calculation appears in the Fact Box as following:
Component Amount GST Base Amount 10,000 CGST 900 SGST 900 G/L Entries for Intra-State Purchase Return/Credit Memo of Services by Input Service Distributor where Input Tax Credit is available is as following:
Particulars Amount Service Account -10000 CGST Receivable Distributor Account -900 SGST/UTGST Receivable Distributor Account -900 Vendor Account 11800 For example, service of INR 10000 returned by Input Services Distributor where input tax credit isn't available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on credit memo.
GST calculation appears in the Fact Box as following:
Component Amount GST Base Amount 10,000 CGST 900 SGST 900 G/L Entries for Intra-State Purchase Return/Credit Memo of Services by Input Service Distributor where Input Tax Credit isn't available is as following:
Particulars Amount Service Account -10000 CGST Expense Account -900 SGST/UTGST Expense Account -900 Vendor Account 11800 For example, service of INR 10000 returned by Input Services Distributor where input tax credit is available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on credit memo.
GST calculation appears in the Fact Box as following:
Component Amount GST Base Amount 10,000 IGST 1800 G/L Entries for Inter-State Purchase Return/Credit Memo of Services by Input Service Distributor where Input Tax Credit is available is as following:
Particulars Amount Service Account -10000 IGST Receivable Distributor Account -1800 Vendor Account 11800 For example, service of INR 10000 returned by Input Services Distributor where input tax credit isn't available, GST 18% (9% CGST and 9% SGST for Intra-State/Intra-Union Territory, 18% for Inter-State transaction) will be charged on credit memo.
GST calculation appears in the Fact Box as following:
Component Amount GST Base Amount 10,000 IGST 1800 G/L Entries for Inter-State Purchase Return/Credit Memo of Services by Input Service Distributor where Input Tax Credit isn't available is as following:
Particulars Amount Service Account -10000 IGST Expense Account -1800 Vendor Account 11800