Purchase a taxable item from an unregistered vendor (India)

This article walks you through creating a purchase order that includes a taxable item for an unregistered vendor in India.

1. Create a purchase order that includes a taxable item.

2. On the purchase order lines, click Tax information, make sure that the tax information for the vendor tax is empty.

3. Validate the tax details of a purchase order.

4. On the Action Pane, on the Purchase tab, in the Tax group, click Tax document to review the calculated taxes.

   Example:

   • Taxable value: 10,000.00
   • CGST: 10 percent; Reverse charge percentage: 100 percent
   • SGST: 10 percent; Reverse charge percentage: 100 percent

   Note

   The Party GST Registration Number field is blank on the Purchase order FastTab. This means that the dealer is not registered as a dealer.

5. Close the page.

6. Click Confirm.

7. Post the purchase invoice.

   1. On the Action Pane, on the Invoice tab, in the Generate group, click Invoice.
   2. In the Default quantity for lines field, select Ordered quantity.
   3. Enter the invoice number.
   4. Click Post.

8. On the Action Pane, on the Invoice tab, in the Journals group, click Invoice.

9. On the Overview tab, click Tax document.

10. Click the Purchase invoice FastTab.

11. Click the Setup tab.

    Note

    The Transaction ID will be generated from the number sequence that was defined for the reference GST invoice in the Tax information for the Reference number sequence group.

12. Close the page.

13. Click Voucher to validate the financial entries.