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what are the journal entry for Reverse Gst

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This query is : Resolved

Pijush Roy (Querist)

27 June 2017 Say, when we buy from unregistered dealer, we need to entry for both input and output gst like Purchase AC Dr rs 10000 Input Gst rs 100 to Output Gst. rs 100 to creditor rs 10000 then I need to pay rs 100 to govt (say we are not sale the good) and take input credit for rs 100 but my above journal net payable is 0. what is the entry need to create for that??

Amol S Joglekar

Amol S Joglekar (Expert)

27 June 2017 you need to keep a separate account for GST paid under RCM, so that your books of accounts can keep the track of the same.
One can make the entry based on the logic of payable entries at the year end.......
Debit GST under RCM
Credit GST under RCM payable........... say 100 in your above cited case

When you pay the GST under RCM
Debit GST under RCM payable
Credit Bank

GST under RCM account can be utilised for ITC. The unutilised portion of GST under RCM will be charged to P & L account

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