Expenses, ITC and reverse-charge

Log business expenses with CGST / SGST / IGST and claim input tax credit. Turn on reverse-charge when you (not the supplier) pay the GST.

Business expenses matter for two things: your income statement (net profit) and your GST input tax credit (ITC). Finocket captures both on the same form.

Record an expense

Tap the + button → Add expense, or press E. Pick a category from the visual grid, enter an amount, a payment mode, an optional subcategory (with type-ahead suggestions from your past entries), and a description.

Scan a receipt

In a hurry? Tap Scan a Bill on the Add screen (or the Scan receipt button inside Add Expense) and photograph the bill. Finocket reads the vendor, date, total, GST split and GSTIN and fills in the form — you just check the numbers and save. The photo stays attached to the expense and is stored privately; you can reopen it from the expense's edit screen. Scanning needs an internet connection; offline, add the expense by hand.

GST paid on this expense

If you paid GST to the supplier on this expense (which is the case for most B2B purchases from a GST-registered vendor), turn on GST paid on this expense. A panel expands with:

Supplier GSTIN — required to claim ITC. Finocket needs the supplier's GSTIN so the ITC amount is traceable to a real registered vendor.
CGST rate + amount, SGST rate + amount, IGST rate + amount — intra-state purchases have CGST + SGST (each at half the rate); inter-state purchases have IGST at the full rate. Enter the rate percent, the amount computes from your expense total.
Eligible for input tax credit — on by default. Turn off for personal-use expenses booked to the business, or for categories where GST law blocks ITC (motor vehicles for personal use, food & beverages, membership of clubs).
Reverse charge (RCM) — turn on when you (not the supplier) are liable to pay GST directly to the government. Common for: services from unregistered suppliers, GTA (goods transport agency), legal services from advocates, director sitting fees.

How ITC flows to GSTR-3B

Finocket aggregates every ITC-eligible expense with a supplier GSTIN into Section 4A of your GSTR-3B (ITC available). Open GST → Returns and pick a month — the ITC card shows the total CGST + SGST + IGST you can claim that month, categorised by RCM vs non-RCM.

Reverse-charge expenses show separately in Section 3.1(d) (inward supplies liable to reverse charge) — this is the GST you owe to the government even though your supplier didn't charge you.

When NOT to turn on ITC eligible

Personal expenses (family lunch, home electricity) accidentally booked to the business.
Motor vehicles used personally, unless you're in the transport / driving-school / car-hire business.
Food, beverages, catering, health services, memberships of clubs.
Goods lost, stolen, destroyed or written off (reverse the ITC).
Any expense over ₹10,000 where the supplier isn't a registered dealer.

Bulk categorisation

The category grid picker suggests categories from your past entries first, so once you've entered a "Travel → Cab" a few times, it's a one-tap pick. The subcategory field autocompletes from your history, scoped to the currently-picked category.

Editing an expense later

Open Expenses → tap the row → Edit. Every GST field can be updated. If you flip an expense from ITC-eligible to not-eligible after filing GSTR-3B for that month, note the change — you may need to reverse the ITC in the next month's return.