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Accounting in case of reverse charge under gst

Accounts 329 views 2 replies
If we have to generate tax invoice in case we have to pay tax under reverse charge, then how we account for such invoice & how the expense should be booked.
Replies (2)
Reverse Charge Entries Under GST:

Entry for Purchase of Goods / Services Availed:

If purchases/services are availed within the state (Intra State) 

Purchase / Expense A/c. ———10,000

Input CGST A/c. ——————- 900

Input SGST A/c.  ——————- 900

To Creditors A/c. or Cash/Bank Ac —— 10,000

To CGST A/c Payable ———————–900

To SGST A/c Payable ———————–900

If purchases / services are availed from other state (Inter State) 

Purchase / Expense A/c. ———10,000

Input IGST A/c. ——————– 1,800

To Creditors A/c. or Cash/Bank A/c. —— 10,000

To IGST A/c Payable ———————–1,800

Thats really helpful but I am concerned in cases where tax invoices are generated by the system itself which automatically post entries in that system. In those cases how should one generate tax invoice of reverse charge entries coz those should be treated as supply to overselves and it has to be included in  GSTR 1 form i.e. outward supply.


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