# Accounting Entries in GST

sushil , 10 April 2020

Accounting Entries in GST

Case-I
Local (Intra-state)

Purchase (18%) Rs. 1,00,000/-

 Purchase A/c Dr. 1,00,000 Input CGST A/c Dr. 9,000 Input SGST A/c Dr. 9,000 To Creditors/Bank A/c 1,18,000

Sale (18%) Rs. 1,50,000/-

 Debtors/Bank A/c Dr. 1,77,000 To Sales A/c 1,50,000 To Output CGST A/c 13,500 To Output SGST A/c 13,500

Legal consultation fees (any exps.) Rs. 10,000

 Legal fees A/c Dr. 10,000 Input CGST A/c Dr. 900 Input SGST A/c Dr. 900 To Bank A/c 11,800

Purchase of Fixed asset for office for Rs. 30,000

 Fixed asset A/c Dr. 30,000 Input CGST A/c Dr. 2,700 Input SGST A/c Dr. 2,700 To Bank A/c 35,400

Total Input CGST=9,000+900+2,700= Rs. 12,600

Total output CGST=13,500
Therefore Net CGST payable=13,500-12,600=900

 Output CGST A/c Dr. 13,500 To Input CGST A/c 12,600 To CGST payable A/c 900

Total Input SGST=9,000+900+2,700= Rs. 12,600
Total output SGST=13,500
Net SGST payable=13,500-12,600=900

 Output SGST A/c Dr. 13,500 To Input SGST A/c 12,600 To SGST payable A/c 900

Payment Entry

Net CGST Payable + SGST Payable=1,800

But if, amount paid by bank=2,000 (assume any amount higher than payable),

Then Balance Left in GST PMT-05 = paid- Payable= 2,000-1,800 = 200/-(extra) and such Balance will be adjusted against GST Payable for the next period

 Electronic Cash Ledger(GST PMT-05).Dr. 2,000 To Bank A/c 2,000

Entry for GST Liability adjusted against Electronic Cash Ledger (GST PMT-05)

 CGST Payable Dr. 900 To Electronic Cash Ledger (GST PMT-05) A/c 900
 SGST Payable Dr. 900 To Electronic Cash Ledger (GST PMT-05) A/c 900

Case-II
Inter-state.

Purchase (other state) (18%) Rs. 1,00,000/-

 Purchase A/c Dr. 1,00,000 Input IGST A/c Dr. 18,000 To Creditors A/c 1,18,000

Sale (same State) (18%) Rs. 1,50,000/-

 Debtors A/c Dr. 1,77,000 To Sales A/c 1,50,000 To Output CGST A/c 13,500 To Output SGST A/c 13,500

Sale(other State) (18%) Rs.80,000/-

 Debtors A/c Dr. 94,400 To Sales A/c 80,000 To Output IGST A/c 14,400

Any Exps.

 Any Expenses A/c....Dr. 5,000 Input CGST A/c ..Dr. 450 Input SGST A/c Dr. 450 To Bank A/c 5,900
 Total Output CGST 13,500 Total Input CGST 450 Total Output SGST 13,500 Total Input SGST 450 Total Output IGST 14,400 Total Input IGST 18,000

The order in which credit needs to be set off is explained in the table below:

 Input Tax Credit Set off against liability CGST (Central GST) CGST and IGST (in that order) SGST (State GST) SGST and IGST (in that order) IGST (integrated GST) IGST, CGST, SGST (in that order)

Any IGST credit will first be applied to set off IGST and then CGST. Balance if any will be applied to setoff SGST.

In this case Total ITC of IGST applied against liability of IGST and CGST, so no balance left for SGST.

 Particulars CGST SGST IGST Output liability 13,500 13,500 14,400 Less: Input tax credit CGST 450 SGST 450 IGST 3,600 14,400 Amount payable 9,450 13,050 NIL

 Setoff against CGST output 1 Output CGST Dr. 4,050 To Input CGST A/c 450 To Input IGST A/c 3,600 2 Setoff against SGST output Output SGST Dr. 450 To Input SGST A/c 450 3 Setoff against IGST output Output IGST Dr. 14,400 To Input IGST A/c 14,400 4 Final payment Output CGST A/c Dr. 9,450 Output SGST A/c Dr. 13,050 To Electronic Cash Ledger (GST PMT-05) A/c 22,500

Please refer all the relevant sections, rules, amendments and consider all the necessary requirements as applicable. I am not responsible for any losses caused or incurred.

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