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If the supplier is from a different state, replace CGST/SGST with IGST (18%) . Tax Calculation Formula Base Amount: Total Invoice Value / (1 + Tax Rate) GST Amount: Base Amount × 18% CGST/SGST: GST Amount ÷ 2
This represents the base value of the goods (tax-exclusive).
When you buy goods or services worth at an 18% GST rate , your journal entry will look like this: Account Head Purchase A/c Input CGST (9%) Input SGST (9%) To Creditor / Bank A/c $11,800 Key Components
You must have the supplier’s valid GST number to claim the Input Tax Credit (ITC).