Recording Purchases

Recording your purchases in BillYantra lets you:

• Track business expenses
• Claim Input Tax Credit (ITC) on GST paid to suppliers
• Auto-populate your GSTR-3B purchase table

How to Record a Purchase

1. Go to Purchase → Purchases in the sidebar.
2. Click + New Purchase.
3. Fill in:
   • Vendor — Select from your vendor list or add a new one.
   • Invoice Number — The supplier's invoice number (important for ITC matching).
   • Invoice Date — Date on the supplier's invoice.
   • Line Items — Products/services purchased, quantity, rate, and GST rate.
4. BillYantra calculates the GST paid (ITC available).
5. Click Save.

Input Tax Credit (ITC)

When you record a purchase with a supplier's GSTIN, the GST you paid becomes ITC — a credit you can use to reduce your GST payable.

Example:

• You purchase goods worth ₹10,000 + GST 18% = ₹11,800 (you pay ₹1,800 GST)
• You sell goods worth ₹15,000 + GST 18% = ₹17,700 (you collect ₹2,700 GST)
• Net GST payable = ₹2,700 − ₹1,800 = ₹900 (after ITC)

ITC Eligibility Rules

You can claim ITC only if:

• The supplier is GST-registered and has filed their GSTR-1
• The purchase is for business use (not personal)
• You have the original tax invoice from the supplier
• The goods/services are not on the blocked ITC list (e.g. food, employee travel)

Purchase Register

View all recorded purchases under Reports → Purchase Register — filterable by date, vendor, and GST type.