watch_later 08/07/17

I received purchase bill from registered dealer of another state & he add freight & insurance on bill & charged IGST at same rate as per goods.

Ex. Taxable Amount - 1000000 + 10000 (freight) + 2000 (insurance)

= 1012000 tax @5% IGST  i.e 50600 

Total Bill amount = 1062600.

My Question is shall I show freight & insurance as expenses & IGST which I pay to the party will show in my account. 

1 Response | Latest response: 08/07/17 | Sort by Likes(thumb_up) Recent | GST Reply
watch_later 08/07/17

What your supplier has done is correct.

What you used to do before GST, you should account in similar way.

IGST charged in invoice whether on product or Freight, insurance etc. you need not to expense it but can take credit if you have not opted composition levy.

You need to book transport and other charges either directly as expense or add it to cost of purchase and increase inventory value.

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