Purchase from composite vendor or purchase of exempted goods and services with no GST impact
A composite vendor is a vendor whose aggregate turnover in a financial year doesn't exceed 50 lakh rupees and opted for composition scheme. A composite vendor neither collects tax from the recipient of supplies nor passes on any credit of input tax. Hence, no GST is computed if the purchases are made from a composite vendor.
On the vendor card, set GST Vendor Type to Composite. Business Central requires either GST Registration No. or ARN No. for this vendor type. When you enter a GST registration number, also specify State Code and the required PAN details. The composite vendor purchase scenario doesn't calculate GST.
Process for purchases from a composite vendor has been explained in this document.
Hinweis
The turnover threshold above is historical background, not current eligibility guidance. Confirm the vendor's current GST classification before selecting GST Vendor Type.
Create a purchase invoice
- [!INCLUDE [open-search](../../includes/open-search.md)] Purchase Invoices, and then choose the related link.
- Select Vendor on Purchase Invoice header, GST vendor type should be Composite or Exempted.
- Select G/L Account, Item Code, Fixed Asset, or Charge (Item) on Purchase Invoice line.
- Check Exempted on the line when the goods or services are exempt. For a vendor with GST Vendor Type set to Exempted, the line validation requires this field to be selected.
Line GST details are copied from the selected item, G/L account, fixed asset, or item charge. A purchase from a composite vendor and an exempt line from a registered vendor are different scenarios. For the latter, keep the vendor's GST Vendor Type as Registered and check the line's Exempted value.
For example, invoice is issued for INR 10000 on which there's no GST is charged.
GL Entries are as following:
| Particulars | Amount |
|---|---|
| Purchase or Services Account | 10000 |
| Vendor Account | -10000 |