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Accounting entries for payment of gst to government

Rohit Kalra (26 Points)

13 September 2020

Hi,

I want to know the accounting entries for payment of gst.

we maintain only one account for input/ output

that is cgst, sgst,igst

Suppose

we purchased goods

Purchase dr 130

cgst dr 10

sgst 10

creditor 150

and made sales

debtor dr 160

sales 130

sgst 15

cgst 15

Now, we have credit balance in both cgst of rs 5 and sgst of rs 5

what will be the accounting entries now

Do we need to first transfer cgst ,sgst to gst payable ac then gst payable to bank ?

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7 Replies

annu Goyal (1102 Points)
Replied 13 September 2020

In case of Accounting, you should made both CGST input and output respective made for all other SGST & IGST also.
because while you file GSTR 3b you have to mention CGST, SGST &IGST output and Input seprate,
As you made only one Account then you have quite difficult to separate both

prasad Nilugal (3909 Points)
Replied 13 September 2020

Out put CGST A/C Dr 15/-
Out put SGST A/c Dr 15/-
To Input CGST A/c Cr 10/-
To Input SGST A/ c Cr. 10/-
To CGST payable A/c Cr. 5/-
To SGST payable. A/c. Cr. 5/-

( GST payable )

payment entry

CGST. A/ c Dr 5/-
SGST. A/c Dr. 5/-
To Bank A/c. Cr. 10/-
( payment in GOVT account ).

Rohit Kalra (26 Points)
Replied 13 September 2020

I don't face any issues while filing gstr 3b as it automatically shows in busy in gstr return.

What entry we should do now.

As our accountant maintained wrong account that is only cgst ,sgst and igst

They don't pass any entry while making sale or purchase they just pass through supply inward and outward voucher.

And when making payment they were passing entry gst payable to bank.

Now gst payable shows debit balance and cgst,sgst and igst account shows credit balance.

What adjustment entries to pass now.

They should have transferred output liability to gst payable but they didn't

2 Like

Rajkumar Patel (602 Points)
Replied 14 September 2020

You should just pass entry CGST A/c.... Dr 5
SGST A/c..... Dr 5
To Bank A/c 10

Rohit Kalra (26 Points)
Replied 14 September 2020

What will be the entry for gst late fees.

Should I pass late fees cgst ,late fees sgst ...dr

bank a/c.... cr

CA Akshay Hiregange (Partner - Audit & Assistance) (4515 Points)
Replied 14 September 2020

Dear Rohit

Considering best practices better to maintain separate ledgers for the below

IGST/CGST/SGST output

IGST/CGST/SGST credit - eligible

IGST/CGST/SGST RCM output

IGST/CGST/SGST RCM input

IGST/CGST/SGST credit - ineligible

Where disclosures in GST returns are not appropriate, it could leave to penalty and also lacks audit trail.

Rohit Kalra (26 Points)
Replied 14 September 2020

Okay thanks,

In my case, disclosure is proper in gst returns but in accounting software busy our accountant made mistakes as he made only these accounts cgst, sgst,igst and gst payable .

When we pay tax accountant debit gst payable and credit bank but he fails to transfer gst liability respectively to gst payable