Tally has a peculiar requirement for passing entry. Even if you are making payment in cash for an item which is office equipment (fixed asset), if you want proper returns to be generated under GST (eg 3B, GSTR-2) then the entry should be passed as a purchase entry.
Whereas we had to re-write the entire years book in the past as this was not acceptable to our auditor. He says that only items purchased which are part of making the finished product will go into purchase entry (eg Raw material, packaging). Other entries for which we are making payment in cash eg Stationary, office equipment (computer peripheral & mobile) need to be passed as payment entry (GST debited to respective account).
I would be grateful if you could please advise.