accounting tratment of gst on composition

387 views 6 replies
pl clarify on accounting treatment of gst charged on purchase bill by supplier and gst paid on sales
Replies (6)
GST on purchase is to be add to inventory cost. no input tax credit.
GST on sales is to be considered as tax paid on sales. ( indirect exp)

For Purchases:

Purchase A/c Dr

GST A/c Dr

           To Supplier/ Bank A/c

For Sales:

Customer/ Bank A/c Dr

            To Sales A/c

             To GST A/c

   

Purchase :
At the time of purchase no way for claim ITC. So, Total purchase bill value enter in purchase account...
Dr. Purchase A/c - XXX
Cr. Supplier A/c - XXX...

Sales
At the time of Sales no way for charge GST in the BOS. As per BOS
Dr. Customers A/c - XXX
Cr. Sales A/c - XXX...

Tax Paid :
As per GST composition dealer will be pay Tax @ 1% (CGST @ 0.5% & SGST @ 0.5%). Both head will be prepare under Expense head...

Dr. CGST @ 0.5% - XXX
Dr. SGST @ 0.5% - XXX
Cr. Bank A/c - XXXX.....
no gst input so it will added purchase cost
ok thanks. it means both gst on purchase and gst paid on sales will be considered as expenses only
purchase gst as expenses, sales output tax u paid tax with own money

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
23 July 2026
Semi qualified CA

Garg Bros & Associate CA

New Delhi

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 16 July 2026
CA Article

Pipara & Co. LLP.

Mumbai

CA Inter

View Details
Company
16 July 2026
Manager - Finance & Accounts

Aliens Group

Hyderabad

CA Final

View Details
Company
ARTICLESHIP 11 July 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details