GST Payable Entry

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Farha Dokadia (Querist)
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15 April 2025 GST Payable will come under which head? I mean when I am selecting Duties and taxes. Under Type of Duty/tax i am selecting GST after that what I am suppose to do ahead. I am not getting that. What to select. Please help. Its a request.
Thank You.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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12 August 2025 GST Payable – Accounting Head & Entry
1. Under which head?

In your Chart of Accounts, GST Payable is usually created as a Current Liability account.

In Tally, this often falls under “Duties & Taxes” → “GST” → “GST Payable” or you can create a ledger under Current Liabilities named GST Payable.

2. What to select after "Type of Duty/Tax"?

When selecting Type of Duty/Tax, choose “GST” or “Central Tax”, “State Tax”, “Integrated Tax” depending on the type of GST.

After selecting GST, select the correct tax type: CGST, SGST, IGST.

3. Common Ledger setup example:

Ledger Name Under Type of Duty/Tax GST Type (CGST/SGST/IGST)
CGST Payable Duties & Taxes GST CGST
SGST Payable Duties & Taxes GST SGST
IGST Payable Duties & Taxes GST IGST

4. Entry Example for GST Payable:

When you record a sales invoice:

Debit: Customer / Accounts Receivable

Credit: Sales (Revenue)

Credit: GST Payable (CGST/SGST/IGST as applicable)

When you pay GST liability to government:

Debit: GST Payable (CGST/SGST/IGST)

Credit: Bank / Cash

Summary:
Step What to do
Select ledger head Duties & Taxes → GST Payable
Select type of tax GST → Choose CGST/SGST/IGST
Pass entries Credit GST Payable when sales made; Debit GST Payable when tax paid

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