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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

Adjustment Entries

 

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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Category GST, Other Articles by - sushil 



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