Purchases
What came in — and what input credit the client can actually claim on it.
014 minNew PurchaseBook a supplier's bill, with ITC classed per line.
024 minNew Other ExpenseBook an overhead. The category decides everything.
034 minPurchases & ExpensesOne history for everything the client bought.
Which form to use
The split is not about size or vendor — it is about whether the bill has lines worth classifying individually.
- New Purchase
- Stock — anything bought to resell or consume as inventory. Every line carries its own HSN, rate and ITC class, because different lines on one bill can be treated differently.
- New Other Expense
- Overheads — rent, telephone, professional fees, software. One category and one amount. Picking the right category is the whole job: it decides the ledger, the GST rate, the ITC treatment and the GSTR-3B table.
Both land in the same place. Purchases & Expenses is one history for everything the client bought — they were once two pages, but they answer the same question.
Reverse charge is about the supply, not the supplier
RCM under Sec 9(3) is driven by the nature of the supply — legal services,
GTA freight, director fees, sponsorship, security services, import of services, per
Notification 13/2017. A purchase from an unregistered or composition vendor does
not automatically attract RCM. Quillix deliberately will not set this from
the vendor's registration type; that was tried and removed, because registration status is
the wrong signal and automating it overrode the auditor on the wrong evidence.
The four ITC classes
- Eligible — Inputs
- The default. Ordinary input credit, claimed in full.
- Eligible — Capital
- Posts to a Fixed Asset ledger instead of Purchases, auto-detected from the item name or HSN and overridable per line.
- Blocked — Sec 17(5)
- Permanently blocked. Only these lines are excluded from the Eligible ITC total.
- Deferred
- Undecided. Sits in neither bucket until reclassified — so a deferred line is not claimed and not blocked, it is simply outstanding.
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