2.

Goods and Services Tax accounting at Procure to Pay (Expense Item)

Document/Accounting Condition Accounting DR Amount CR Amount

Event

Purchase Order PO Approve No Accounting

Receipt Receiving

Tax Point Bases = Delivery Recoverable:

CGST/SGST/IGST Interim Recovery a/c XXX

XXX
To Expense AP Accrual a/c

Non-Recoverable:

Receiving Inventory a/c XXX XXX

To Expense AP Accrual a/c

Tax Point Bases = Invoice

No accounting for recoverable

Taxes

Delivery Recoverable:

No Accounting for recoverable tax at Delivery

event

Non-Recoverable: XXX

Expense Item a/c XXX

To Receiving Inventory a/c

Claim ITC (Input Tax Credit) CGST/SGST/IGST Recovery a/c XXX

To CGST/SGST/IGST Interim XXX

Recovery a/c

Invoice Receipt Matched Invoice

Tax Point Bases = Delivery Expense AP Accrual a/c XXX

To Supplier Liability a/c XXX

CGST/SGST/IGST Interim Recovery a/c XXX

Tax Point Bases = Invoice

To Supplier Liability a/c XXX