When you buy goods or services worth at an 18% GST rate , your journal entry will look like this: Account Head Purchase A/c Input CGST (9%) Input SGST (9%) To Creditor / Bank A/c $11,800 Key Components
If the supplier is from a different state, replace CGST/SGST with IGST (18%) . Tax Calculation Formula Base Amount: Total Invoice Value / (1 + Tax Rate) GST Amount: Base Amount × 18% CGST/SGST: GST Amount ÷ 2
To record an intra-state purchase (GST within the same state) in your accounting system, follow this guide for a standard 18% GST entry.
This is the total invoice value you owe the supplier. Important Checklist
This represents the base value of the goods (tax-exclusive).
📍 Always reconcile these entries with your GSTR-2B statement before filing your monthly returns to ensure the supplier has uploaded the invoice.
You must have the supplier’s valid GST number to claim the Input Tax Credit (ITC).
