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

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This query is : Resolved

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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 online

abhijit majumder online

(Querist)
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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 online

Dhirajlal Rambhia online

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

abhijit majumder online

abhijit majumder online

(Querist)
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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

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