Supplier Tax Information

Supplier Tax Information

Accurate tax information for suppliers is essential for proper tax calculations, compliance, and reporting. This guide explains how to configure supplier tax information in EquiBillBook.

Why Configure Supplier Tax Information?

• Tax Compliance: Ensure accurate tax calculations on purchase transactions
• GST Compliance: Maintain proper GST records and documentation
• Input Tax Credit: Claim input tax credit (ITC) correctly
• Reporting: Generate accurate tax reports and returns
• Audit Trail: Maintain proper documentation for audits

Tax Preference Settings

Configure the tax preference for each supplier:

Taxable

• Supplier is registered for tax (GST/VAT)
• Tax will be calculated on purchases from this supplier
• You can claim input tax credit (ITC) on purchases
• Most common setting for registered suppliers

Exempt

• Supplier is exempt from tax
• No tax will be charged on purchases
• Common for certain types of goods or services

Non-Taxable

• Supplier is not registered for tax
• No tax will be calculated
• You cannot claim input tax credit

GST Treatment

Select the appropriate GST treatment based on supplier registration:

• Registered Regular: Supplier is GST registered (normal)
• Registered Composition: Supplier is registered under composition scheme
• Unregistered: Supplier is not GST registered
• SEZ: Supplier is in Special Economic Zone
• Consumer: For B2C transactions

Place of Supply

Select the place of supply for tax calculations:

• Same State: Supplier and your business are in the same state
• Different State: Supplier and your business are in different states
• Union Territory: Supplier is in a union territory
• This determines whether CGST+SGST or IGST applies

Tax Registration Numbers

PAN Number

• Required for Business: PAN (Permanent Account Number) is mandatory for business suppliers
• Format: Enter 10-character PAN (e.g., ABCDE1234F)
• Used for tax compliance and reporting
• Verify PAN number before saving

GST Number

• Required for GST Registered: GST number is mandatory for GST-registered suppliers
• Format: Enter 15-character GSTIN (e.g., 27ABCDE1234F1Z5)
• Used for GST compliance, returns, and input tax credit
• Verify GST number format and validity

Tax Exemption

If the supplier is exempt from certain taxes:

• Select the appropriate tax exemption reason
• Enter exemption certificate number if applicable
• Enter exemption validity period
• Attach exemption certificate if required

Configuring Tax Information

To set up supplier tax information:

1. Go to Suppliers → Supplier List
2. Find and edit the supplier
3. Navigate to the Tax Information section
4. Select Tax Preference (Taxable, Exempt, or Non-Taxable)
5. Select GST Treatment if applicable
6. Select Place of Supply
7. Enter PAN Number (if applicable)
8. Enter GST Number (if applicable)
9. Configure Tax Exemption if applicable
10. Save the changes

Tax Information Validation

The system may validate:

• PAN Format: Ensures PAN follows correct format
• GST Format: Validates GST number format
• GST-PAN Match: Verifies GST number contains correct PAN
• State Code: Validates state code in GST number

Tax Information on Purchase Bills

When you create purchase bills:

• Tax is automatically calculated based on supplier tax settings
• GST number appears on purchase bills
• Tax breakdown (CGST, SGST, IGST) is shown based on place of supply
• Input tax credit (ITC) is calculated automatically

Best Practices

• Verify Numbers: Always verify PAN and GST numbers before saving
• Keep Updated: Update tax information when supplier registration changes
• Document Exemptions: Maintain exemption certificates for exempt suppliers
• Regular Review: Periodically review supplier tax information
• Compliance: Ensure all registered suppliers have valid GST numbers
• Place of Supply: Correctly identify place of supply for accurate tax calculation

Common Tax Scenarios

Same State Purchase

• Place of Supply: Same State
• Tax Applied: CGST + SGST
• Example: You in Maharashtra, Supplier in Maharashtra

Interstate Purchase

• Place of Supply: Different State
• Tax Applied: IGST
• Example: You in Maharashtra, Supplier in Gujarat

Composition Supplier

• GST Treatment: Registered Composition
• Tax Rate: Lower rate (composition rate)
• ITC: Cannot claim input tax credit

Troubleshooting

Tax Not Calculating: Check if tax preference is set correctly, verify GST treatment, and ensure place of supply is selected.

Wrong Tax Type: Verify place of supply setting - same state uses CGST+SGST, different state uses IGST.

GST Number Error: Verify GST number format (15 characters), check PAN in GST number, and validate state code.

Related Topics

• Creating Suppliers
• Supplier Details
• Purchase Bills
• Tax Settings
• GST Reports