The tax paid, which acts as an asset because it can be claimed as Input Tax Credit (ITC) to offset future tax liabilities on sales.
One of the major benefits is that the full IGST paid on purchases can be used to pay off Output IGST, CGST, or SGST liabilities. 19 - Purchase IGST Entrypdf
IGST is calculated by applying the relevant tax rate (e.g., 5%, 12%, 18%, or 28%) to the total taxable value of the goods. For imports, it is calculated on the value including Basic Customs Duty (BCD) . The tax paid, which acts as an asset
To validly record this entry and claim ITC, you must possess a proper tax invoice from the supplier that includes their GSTIN, the HSN/SAC code of the items, and the specific IGST amount charged. Software Recording (e.g., TallyPrime / Tally.ERP 9) How to pass accounting entries under GST - ClearTax For imports, it is calculated on the value
IGST applies only when the "Place of Supply" is in a different state from the buyer's registered location.