Standard Rated Purchase

Standard Rated Purchase

Standard Rated Purchase

First, Let us see the types of Purchase Scenarios under GST

Different Types Of Purchase

There are 6 types of Purchase Scenarios under GST

1. Standard Rated Purchase
2. Zero Rated Purchase
3. Imports
4. Purchase from non-gst registered customers
5. Exempt Purchase
6. Out of Scope Purchase

A Standard Rated Purchase is the purchases which you make locally of goods or services.

The tax paid on Standard Rated Purchase can be adjusted against the tax collected on sales; This is known as input tax credit

Let Us Now See How To Record A Standard Rated Purchase Using Reach Accounting Software

1.Click on Expense in the top tab menu and choose Bill

2.Click on Add Bill

3.The first tab will prompt you to choose the type of Invoice you choose to raise; Choose Standard Rated Purchase
4.The Bill entry is divided into three sections

• The first section allows you to fill the basic Supplier Invoice details like date, supplier reference, currency and due date
• You will see a checkbox which has to be checked if the taxable purchase is subject to customer accounting.
• The second section allows you to choose the products, description, quantity and value of the purchase along with taxes
• The final section allows you to attach the bill copy and set reminders for payment followup

5.Fill the details appropriately
6.Once done, you have to option to save the Invoice

7.On saving the Invoice Reach Software will automatically record the supplier bill

8.The daybook, ledgers, trial balances and financial statements are automatically posted and prepared

9.The GST payable ledger is automatically adjusted for input credits

10.It will also auto-populate the relevant tax codes in the GST forms so you will not have to prepare them manually later.