How to Record Vendor Bills & Maximize Input Tax Credit (ITC)
Track everything your business owes to suppliers. Record vendor invoices, attach scanned receipts, monitor payment deadlines to avoid late fees, and capture full Input Tax Credit (ITC).
Prerequisites: What You Need Before You Start
- Vendor bill details and supplier GSTIN.
Standard Operating Procedure
Execute these 5 sequential steps to complete the workflow without compliance errors.
Navigate to Bills
Step 1 of 5Click 'Bills' under Purchases in the sidebar (/business/bills).
Click '+ Add Bill'
Step 2 of 5Enter the Vendor's Name, Vendor Invoice Number, Bill Date, and Payment Due Date.
Itemize Purchased Goods/Services
Step 3 of 5Add items, quantities, and purchase prices. Ensure the tax slab matches the supplier's invoice to verify ITC eligibility.
Attach Digital Invoice Copy
Step 4 of 5Upload a PDF or photo of the physical invoice for audit readiness.
Record Payments Made
Step 5 of 5When you pay via NEFT, UPI, or Cheque, click 'Record Payment' to reconcile your accounts payable.
Statutory & GST Compliance Notes
- ✓To claim Input Tax Credit under Section 16 of the CGST Act, you must possess a valid tax invoice and make payment to the vendor within 180 days.
Frequently Asked Questions
Quick answers to common questions about using this screen.