Purchase without bill

[Harvinder Singh]

My client is small trader registered as normal tax payer with annual turnover of less than 50 lakhs. He had purchased some goods from very lower level unregistered supplier who don't even provide invoice (given kacha parcha). Now my query is how to show this in GSTR 3B and GSTR-1.

1.Being small trader he is not maintaining any account.

2. All billing is b2b so has to declare that sale of product purchased from unregistered dealer.

3. HOW TO KEEP RECORD FOR THIS PURCHASE WITHOUT MAINTAING ACCOUNT. Do we need to generate self invoice without RCM?
 

[Ganeshan Kalyani]

There are software available in the market which may help you to maintain your books of accounts.

[SAKTHIVEL K]

Purchases from URD is exempt from payment of GST under RCM for now [other than notified services u/s. 9(3)]. Yes GST registered buyer has to raise self-invoice of such purchases from URD and declare the same in exempted purchases in GSTR 3B return in Table-5 [Exempt or nil rated or non GST inward supply].

[KASTURI SETHI]

O.K. But the querist has problem with Katcha Bill. If the small trader is exempted from GST, commercial invoice has to be issued. Katcha bill ( slip) has no legal value. Goods have to be accounted for properly.

FAQ (CBEC)

Q.No.7 If we are only dealing in exempted items what is the type of invoice we are required to issue to our buyers? Is it bill of supply or regular GST Invoice?

Ans. You may issue a commercial invoice in such cases. However, if you are a registered person, you may issue a bill of supply for exempt supplies

AI Summary

Purchases from unregistered suppliers: buyer must self-invoice and report as exempt/non GST inward supply in returns. Purchases from unregistered dealers are not liable to GST under reverse charge except for notified services; a GST-registered buyer must raise a self-invoice for such purchases and declare them as exempt or non GST inward supplies in GSTR-3B Table 5. Informal 'kacha' slips lack legal value; registered persons should issue a commercial invoice (or a bill of supply for exempt supplies) and maintain proper records, using accounting books or software to support return reporting.