I appreciated the details and the screenshot, Abdul Rehman.

Based on the screenshot, you used the TST - 10% Expense (1950.00) as one of  the affected accounts when you created the bill. Hence, the amount reflected on the Tax Liability Report.

There are different ways to show the sales tax amount without affecting the Tax Liability Report. You can do either of the following:

• Use a different expense account (not the TST - 10% Expense account). You can create a new one if necessary.
• Enter the total amount (including the sales tax paid by the vendor) for the Interest Expense account. 

Go back to the bill and change the affected accounts. Make sure not to use the TST - 10% Expense account.

It's also best to discuss this with your accountant. They might have a different way to record your bills.

I got you if you have more questions about this.