accounting tratment of gst on composition

Accounts 345 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


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