Price inclusive or exclusive of GST while made entry in P& L Account

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This query is : Resolved

Quick Summary

When recording purchases of raw materials that attract GST, and when making sales, the Profit and Loss (P&L) Account should reflect prices exclusive of GST. This means that the GST component is not included in the values shown on the P&L, providing a net-of-tax figure for both income and expenses.

abhijit majumder

abhijit majumder (Querist)

30 September 2026 Sir
A company while purchase of any raw material which attract GST ,which value it entered in P&L Account. ie whether GST inclusive price or GST exclusive price.
Similarly while making sale whether credit side of P&L Account value include or exclude GST.
Regards
Abhijit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 September 2026 Both purchases (raw materials) and sales in the Profit and Loss Account are recorded at GST-exclusive prices (net of tax).

Message likes : 1 times

abhijit majumder

abhijit majumder (Querist)

30 September 2026 Thanks to Sir Rambhia for sharing his valuable opinion .
I think that means P&L Account will show the price less GST element.
Regards
Abhijit

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 September 2026 Correct. Basic value without GST levy.

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