GST on expenses refers to the Goods and Services Tax component embedded in business expenses such as hotel bills, flight tickets, cab rides, and vendor purchases in India. Zoho Expense allows employees to capture the GST amount on each expense, enabling the company to claim Input Tax Credit (ITC) on eligible business expenditures and maintain compliance with GST regulations.
When an employee adds an expense in Zoho Expense, they can enter the GST breakdown (CGST, SGST, IGST) or select a GST category and let the system calculate the tax component automatically. The GST details are stored against each expense entry and flow into reports that finance teams use to file ITC claims with the tax authorities.
Zoho Expense generates GST-specific reports showing the total eligible ITC across all approved expense reports for a given period. These reports can be exported and used to support the ITC claim in GST returns. Expenses that do not qualify for ITC (such as entertainment costs above the allowed limit) are automatically excluded based on the expense category configuration.
Yes. When adding a GST-applicable expense, employees or admins can specify the tax type (intrastate CGST/SGST or interstate IGST). Zoho Expense stores and reports each component separately, which is required for accurate GST return filing and ITC reconciliation.
Zoho Expense’s Auto-Scan can extract GSTIN numbers from receipts. Admins can configure the system to validate extracted GSTINs against the vendor master in Zoho Books, flagging expenses where the supplier GSTIN is missing or does not match a registered vendor.
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