What is Purchase Taxes and Charges?
- Purchase Taxes and Charges
- Purchase Taxes and Charges in ERPNext define GST, customs duty, freight, and other charges applied to purchase transactions using reusable tax templates.
Purchase Tax Templates
Go to Accounts → Purchase Taxes and Charges Template → New. Add rows for each charge type (IGST @18%, Freight, Customs Duty). Mark each as "Actual" (fixed amount) or "On Net Total" (%). Assign the template to a Supplier or to the Buying Settings default.
GST on Purchases
ERPNext auto-selects the correct IGST/CGST+SGST template based on the supplier's state vs your company's state. Input Tax Credit (ITC) is automatically tracked in the ITC Receivable account for GST return reconciliation with GSTR-2B.
Infonoxe Technologies specialises in ERPNext implementation and custom software for Indian businesses.
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