Purchase

Purchase Invoice / Purchase Bill

A bill received from a supplier for goods or services purchased

Definition

A purchase invoice, also known as a purchase bill, is a document received from a supplier when you buy goods or services for your business. It records the supplier's details, GSTIN, invoice number, date, item descriptions, quantities, rates, applicable GST (CGST, SGST, or IGST), and the total amount you owe. For Indian businesses registered under GST, purchase invoices are essential because they serve as proof of purchase and allow you to claim Input Tax Credit (ITC) on the GST paid to your supplier. Every purchase invoice must be verified against the actual goods received and matched with your GSTR-2B to ensure seamless ITC claims. Proper purchase invoice management reduces discrepancies during GST reconciliation and helps you track your cost of goods accurately for profit calculations.

How It Works

  1. 1When you receive goods from a supplier, the supplier issues a purchase invoice listing item details, quantities, rates, GST charges, and the total payable amount.
  2. 2You verify the invoice against the actual goods received — checking quantities, quality, and pricing match what was ordered.
  3. 3The invoice is recorded in your purchase register, which increases your inventory and creates a payable entry (sundry creditor) for the supplier.
  4. 4The GST amount on the invoice becomes your Input Tax Credit (ITC), which you can claim while filing your GST return to reduce your tax liability.

Example

You run a grocery store in Pune and purchase 100 kg of rice at Rs. 50/kg from a wholesaler. The supplier issues a purchase invoice: Subtotal = Rs. 5,000, GST @5% = Rs. 250, Total = Rs. 5,250. You record this in your purchase register and claim Rs. 250 as Input Tax Credit while filing your GST return.

How Stock Register Handles This

  • Create purchase invoices in under a minute with auto-calculated GST based on item HSN codes
  • Link purchase invoices to purchase orders for automatic quantity and price verification
  • Track pending supplier payments with due date alerts — never miss a payment deadline and lose ITC eligibility
  • Match purchase invoices with GSTR-2B data to ensure seamless ITC claims during GST return filing

Related Terms

Sales Invoice / BillDebit Note / Purchase ReturnPurchase Order (PO)

Related Guides

Create Purchase Invoice

Frequently Asked Questions

What happens to my stock when I record a purchase invoice?

When you save a purchase invoice in Stock Register, the item quantities are automatically added to your inventory. The purchase cost is also updated, which affects your stock valuation and profit calculations.

Can I claim GST Input Tax Credit without a proper purchase invoice?

No, a valid purchase invoice with the supplier's GSTIN, correct HSN codes, and proper GST breakup is mandatory for claiming ITC. Without it, you will have to bear the full GST cost, which directly reduces your profit margin.

What is the difference between a purchase invoice and a purchase order?

A purchase order is a request you send to a supplier before buying — it is not a billing document. A purchase invoice is the actual bill issued by the supplier after goods are delivered, and it creates accounting entries in your books.

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