Transactions for Input Service Distributor

In this document we are going to discuss the process and entries of input service distribution.

Purchase transaction with input service distribution location

  1. Choose the img.icon, enter Purchase Invoice, and then choose the related link.
  2. Select Vendor on Purchase Invoice header.
  3. Location code should not be blank on Purchase Invoice header, and Input Service Distribution should be marked True on Location master.
  4. Select G/L Account on Purchase Invoice line for service transaction.

  • 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 will appear 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, will be 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 is not 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 will appear 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 not available, will be 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 will appear 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, will be 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 is not 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 will appear 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 not available, will be as following:

    Particulars Amount
    Service Account 10000
    IGST Expense Account 1800
    Vendor Account -11800

Purchase return transaction with input service distribution location

  1. Choose the img.icon, enter Purchase Return Order or Purchase Credit Memo, and then choose the related link.
  2. Select Vendor on Purchase Return Order or Purchase Credit Memo header
  3. Location code should not be blank on Purchase Return Order or Purchase Credit Memo header, and Input Service Distribution should be marked True on Location master.
  4. 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 will appear 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, will be 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 is not 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 will appear 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 not available, will be 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 will appear 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, will be 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 is not 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 will appear 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 not available, will be as following:

    Particulars Amount
    Service Account -10000
    IGST Expense Account -1800
    Vendor Account 11800

See Also

GST Input Service Distribution Process

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