Import type of Purchase

An import is a good or service bought in one country that was produced in another. Import trade refers to the purchase of goods from a foreign country. The procedure for import trade differs from country to country depending upon the import policy, statutory requirements and customs policies of different countries.

As per the GST norms, The import of goods has been defined in the IGST Act, 2017 as bringing goods into India from a place outside India. All imports shall be deemed as inter-State supplies and accordingly Integrated tax shall be levied in addition to the applicable Custom duties.

Import Purchase can be done in RetailEasy software as follows:

Let us consider a sample Import Invoice

*While Importing any goods from the other countries, RSP, Social Welfare Charge and other customs duty charges will be levied based on the item. In the given invoice, RSP, Social Welfare Charge and IGST has been applied.

18,000 Kgs of walnuts were imported on this invoice with the unit price as 2.5 dollars and the same same has been converted into INR 3361500 on which 100% RSP is applied and 10% Social welfare charge (INR 336150) is levied and then 5% IGST (INR 352927.5) has been calculated which gives the final amount to be paid. i.e. INR 4050608.

A new calculation master for custom duty has been given by default.

Now, In order to input those custom duty charges, the respective ledgers need to be prepared on AccountsEasy

Master - > Ledger Master -> Create those custom duty Ledgers

Ledger Group should be selected as " Direct / Indirect Expenses "

Under the Misc Tab  -  "Purc O/H GL? (Import&Local)" should be chosen as " Yes"

Under the Vat / GST Tab - > Input the SAC code which is a mandatory one.

Custom Duty Ledger : RSP

Custom Duty Ledger : Port

Ledger group should be Sundry Creditors as the IGST and other custom duty charges are to be paid at the port.

Input the GST number and choose the location type as  " Interstate "

In RetailEasy, a default purchase formula  " GST Import Formula " has been given

We need to load the purchase formula by navigating to Purchase - > Purchase Formula - > Change

Select the Purchase formula  " GST Import Formula "

Click on Specific distributors and select the required import supplier

After mapping the purchase formula, Open the Purchase invoice screen and load the supplier details, input the invoice number , amount and load the item details and its price.

Now, Click on Show header and then click on Customs duty. It will open up a calculation window on pressing any key

In the expense window, select the liable party name and the custom duty expenses, input the invoice date (DD-MM-YYYY Format) and tax rate and then click on proceed.

To know more about the accounts posting, click here.

To know more about the posting on TFA, click here.

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