accouting
This query is : Resolved
15 July 2017
i have one question can we club GST in sale in financial statement or not just like excise duty???
15 July 2017
No you can't. Keep separate accounts of GST.
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15 July 2017
accounting standered 18???
14 July 2024
Yes, you can include GST (Goods and Services Tax) in your financial statements similarly to how excise duty is treated. GST is a consumption tax that is typically borne by the end consumer but collected and remitted by businesses to the tax authorities.
In financial statements, GST is often included in the total revenue if your business is required to charge GST on sales. When you make a sale subject to GST, you would record the gross amount including GST as your revenue. Subsequently, you would account for the GST collected as a liability until it is remitted to the tax authorities.
Here's a simplified example:
- Let's say you sell a product for $100 plus 10% GST.
- You would record $110 as revenue in your financial statements.
- Out of the $110, $10 represents the GST collected.
- The $10 GST collected is not your revenue but rather a liability until you remit it to the tax authorities.
Similarly, if you incur GST on purchases (input tax), you would typically include this as part of your expenses or as part of the cost of goods sold, depending on the nature of your business and accounting policies.
It's important to follow the applicable accounting standards and tax regulations in your jurisdiction when preparing financial statements that include GST.
In financial statements, GST is often included in the total revenue if your business is required to charge GST on sales. When you make a sale subject to GST, you would record the gross amount including GST as your revenue. Subsequently, you would account for the GST collected as a liability until it is remitted to the tax authorities.
Here's a simplified example:
- Let's say you sell a product for $100 plus 10% GST.
- You would record $110 as revenue in your financial statements.
- Out of the $110, $10 represents the GST collected.
- The $10 GST collected is not your revenue but rather a liability until you remit it to the tax authorities.
Similarly, if you incur GST on purchases (input tax), you would typically include this as part of your expenses or as part of the cost of goods sold, depending on the nature of your business and accounting policies.
It's important to follow the applicable accounting standards and tax regulations in your jurisdiction when preparing financial statements that include GST.
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