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Accounting entry for export GST Payable

Preksha Bhatt (CA.Student) (290 Points)

01 June 2018

what is accounting entry for GST payable in case of export without LUT?

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19 Replies

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 01 June 2018

Party ... Dr
To Sale Export. Cr
To IGST payable Cr

Preksha Bhatt (CA.Student) (290 Points)
Replied 01 June 2018

but we are not liable to recover from party ..
as we going to claim refund

(Guest)

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

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 01 June 2018

When got the refund for IGST charged

Bank Dr
To party Cr

Preksha Bhatt (CA.Student) (290 Points)
Replied 01 June 2018

but we will receive refund after netting off ITC and closing bal of party shows before ITC

(Guest)

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?????

Preksha Bhatt (CA.Student) (290 Points)
Replied 01 June 2018

if refund received after netting of ITC then ?

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 01 June 2018

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

1 Like

Preksha Bhatt (CA.Student) (290 Points)
Replied 01 June 2018

if refund received after netting of ITC then ?

(Guest)

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.