Expenses
Costs that are not stock, such as rent, electricity, software or travel, for your profit and loss and for the GST credit on them.
#The expense list
Total Expenses, GST Paid (ITC) and Entries add up what is shown. Search by description, vendor or bill number, and filter by category and financial year. The table shows date, description, category, vendor, amount, GST and payment mode, with totals at the bottom.
#Adding an expense
| Field | What to know |
|---|---|
| Date | Today to start |
| Category | See the list below. Other to start. |
| Description | Required, such as "AWS Hosting - March" |
| Amount (incl. GST) | Required. The full amount you paid. |
| GST % (for ITC) | The GST rate on the bill. The GST inside the amount is worked out and shown underneath. |
| Vendor Name, Vendor GSTIN | Needed to claim the credit |
| Invoice / Bill No | Optional |
| Payment Mode | Bank Transfer, UPI, Cash, Cheque, Card or Other |
| Inter-state expense | Tick when the vendor charged IGST, as with cloud and software firms billing from another state |
| Note | Optional |
#Categories
Office Rent, Utilities, Internet & Phone, Software & Tools, Travel, Meals & Entertainment, Office Supplies, Salary & Wages, Professional Fees, Insurance, Marketing & Ads, Raw Materials, Shipping & Courier, Repairs & Maintenance, Bank Charges, GST Paid, Asset Purchase, Personal / Drawings, and Other.
The Income Tax screen leaves out Personal / Drawings and Asset Purchase when working out business income, since they are not business expenses for tax. The profit and loss report includes every category.
#How the GST credit is used
The GST on each expense is added to your input tax credit in GSTR-3B: to IGST if the expense is inter-state, otherwise split between CGST and SGST. Only claim credit you are entitled to: food, personal spending and bills without the vendor's GSTIN usually do not qualify. Check against GSTR-2B.
#For your accountant
Export CSV saves expenses.csv with the rows shown: date, description, category, amount, GST amount, GST %, vendor, vendor GSTIN, invoice number, payment mode and note.