narendra (Accountant) (281 Points)
30 December 2020As per GST Audit, there was payment liability for 'excess ITC availed' compared to Table 8A auto-populated ITC. Same was paid through DRC-03.
For the payment made, what will be the appropriate accounting-head for 'Debit' in the accounting entry to be passed in the books?
Balamurali Unnithan MS
(STUDENT)
(1631 Points)
Replied 30 December 2020
narendra
(Accountant)
(281 Points)
Replied 30 December 2020
Thank you Balamurli Unnithan.
Since the payment is against unaccounted liability, we need to raise a GST liability first (where IGST/CGST/SGST ledgers are credited), and then, to settle the GST account we will make the above payment entry as you provided.
But first, when raising the payable GST liability what account to debit against corresponding credit to be made to the GST ledgers?
CA Rashmi Gandhi
(Chartered Accountant)
(86500 Points)
Replied 17 January 2021
entry may be:
ITC Reversed A/c (Expense)
TO CGST A/C
TO SGST A/C
TO IGST A/C
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