Accounting entry for export GST Payable

Accounts 7727 views 19 replies
what is accounting entry for GST payable in case of export without LUT?
Replies (19)
Party ... Dr
To Sale Export. Cr
To IGST payable Cr
but we are not liable to recover from party ..
as we going to claim refund
Suppose If I export goods for Rs. 100000 and importer will pay 100000 only and to follow the principle of "export the goods not the taxes" how will you post the amount to the above entry
When got the refund for IGST charged

Bank Dr
To party Cr
but we will receive refund after netting off ITC and closing bal of party shows before ITC
So According to the above replies entry should
be

Party Dr. 118000
Sales 100000
IGST 18000

And after getting refund

Bank Dr 18000
Party 18000
Right???
So bill should be raised for 118000 and party will pay only 100000 right?????
if refund received after netting of ITC then ?
What do you mean by netting of

yes you can pass entry :

ITC Recoverable Dr
To Party ............Cr

When reced. Refund

Bank ... Dr
To ITC Recoverable ... Cr
if refund received after netting of ITC then ?
ITC means credit of input tax. And input tax means -
"input tax" in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes-

[a] the integrated goods and services tax charged on import of goods;

[b] the tax payable under the provisions of sub-sections [3] and [4] of Section 9;

[c] the tax payable under the provisions of sub-sections [3] and [4] of Section 5 of the Integrated Goods and Services Tax Act;

[d] the tax payable under the provisions of sub-sections [3] and [4] of Section 9 of the respective State Goods and Services Tax Act; or

[e] the tax payable under the provisions of sub-sections [3] and [4] of Section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition levy;



As you can see tax paid on export is not covered here so no question of netting off.
It will be straight away refunded.
Party a/c Dr
GST Refundable a/c Dr
To Bank a/c

DOESN'T MATTER, YOU CAN SETOFF THE OUTPUT IGST ON EXPORT BY INPUT FROM INWARD SUPPLY

AS TO ABOVE ENTREY , RECED. REFUND CAN BE CREDITED TO "ITC RECOVERABLE"

Agree with Pankaj Rawat Sir

if refund received after netting of ITC ? 
 


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