Supplier Master is where you create, upload, and maintain supplier information in EZTax.in GST Accounting Software. It stores all supplier details needed to create purchase invoices/bills, track costs and expenses, manage ageing, claim Input Tax Credit (ITC), and monitor supplier activity.
In the GST regime, suppliers can be of different types including registered, unregistered, composition scheme, Input Service Distributor (ISD), SEZ suppliers, and importers. Supplier master data includes supplier type, GST number, mobile number, email, address details, and bank information.
Note: For unregistered suppliers where reverse charge may apply, you can create bills without entering a GST number and select Yes/No for reverse charge applicability.
When creating a supplier, you must select the correct supplier type. This determines how GST applies and whether you can claim Input Tax Credit. Here are the main types:
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Registered Supplier
Supplier with GST registration. Turnover exceeds Rs 20 lakhs (services) or Rs 40 lakhs (products). You can claim full Input Tax Credit on purchases.
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Unregistered Supplier
Supplier without GST registration. No Input Tax Credit available. Reverse charge may apply. Reverse Charge Mechanism (RCM) deferred till 30 Sep 2019.
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Input Service Distributor (ISD)
Office of goods/services supplier that distributes ITC credit to branches. Requires separate GST registration. Common for head office purchases.
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SEZ Supplier
Supplier located in Special Economic Zone. IGST applies on SEZ purchases. Different business and trade laws apply.
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Imports
Goods or services purchased from outside India. IGST levied on imports. Handled differently from domestic suppliers.
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Composition Scheme Supplier
Supplier under composition scheme with lower tax rate. Different Input Tax Credit rules apply. Used for small-scale suppliers.
Quick shortcut: Press Alt+S in the Supplier screen to quickly create a new supplier entry. Or click the Add button in the Supplier Master interface.
1
Enter Supplier/Trade Name
Enter the supplier's trade name or business name. This can be different from their legal name. Use the name as it appears on their invoices for clarity.
2
Select Supplier Type
Choose from Registered, Unregistered, ISD, SEZ, Composition, or Imports. This determines GST applicability and Input Tax Credit eligibility.
3
Enter GSTIN Number
For registered suppliers, enter the 15-digit GSTIN. Format: 2 (state) + 10 (PAN) + 1 (registration number) + 1 (Z) + 1 (check digit). Non-Indian suppliers use their VAT/ABN numbers.
4
Add Contact Information
Enter 10-digit mobile number and email address for communication, sending purchase orders, and invoice delivery.
5
Provide Address Details
Fill in supplier's place of business: Flat number, Area, City, Pincode, State, Country. Use details from supplier's invoices.
6
Add Bank Information (Optional)
Enter bank account details if paying by bank transfer: Bank Name, Account Number, Account Type (Savings/Current), IFSC Code.
7
Save the Supplier
Click Save button to store supplier data securely. Verify all information is correct before saving.
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Pro Tip: Save supplier information exactly as it appears on their GST certificate or invoice to avoid mismatch errors during compliance checks.
GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit identifier assigned to every registered GST taxpayer. Understanding its structure helps you verify supplier details:
- Positions 1-2: State code (01=Andhra Pradesh, 27=Maharashtra, etc.)
- Positions 3-12: 10-digit PAN of the taxpayer
- Position 13: Entity number (assigned based on registrations in that state)
- Position 14: Always 'Z' by default
- Position 15: Check digit for validation
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Validation: Always validate GSTIN format before saving. Non-Indian suppliers use their country's VAT/ABN format based on business setup country.
1
Use Consistent Naming
Always use supplier names exactly as they appear on GST certificates and invoices to avoid mismatch during compliance audits.
2
Verify GSTIN Before Saving
Cross-check GSTIN format (15 digits) and validate against GST portal to ensure accuracy and prevent ITC claims denial.
3
Maintain Complete Address
Fill all address fields from supplier's invoice. Incomplete address details can cause GST return reconciliation issues.
4
Update Contact Information
Keep mobile and email current for purchase order communication and receipt of digital invoices and confirmations.
5
Categorize Suppliers Correctly
Select correct supplier type (Registered, Unregistered, ISD, SEZ). Wrong categorization affects ITC claims and GST compliance.
6
Regular Data Cleanup
Periodically review and update supplier records. Remove inactive suppliers and correct any outdated contact or bank details.
Need Help with Supplier Master?
Our EZTax.in support team is ready to assist you with supplier creation and management.
