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Entry for GST adjustment

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Mohd Khalid

493 Points Posted on 16 September 2020

Friends suppose I purchased some goods and paid CGST 500 and SGST 500 on it
Now I sold that goods and received CGST 600 and SGST 600 from customer
Now I have input CGST 500 and input SGST 500 and output CGST 600 and output SGST 600
Now I have tax liability of CGST 100 and SGST 100
Now the journal entry for the input output adjustment and tax payment through Challan made from bank to gov is:
CGST output Dr. 500
SGST output Dr. 500
To CGST input 500
To SGST input 500
CGST output Dr. 100
SGST output Dr. 100
To Bank 200
Friends I just want to ask the entry that I passed are correct or not

Replies (8)

Quick Summary

This discussion clarifies the correct journal entries for adjusting GST input tax credits against output tax liabilities. It explains how to record the netting off of CGST and SGST, and the subsequent payment of the remaining balance to the government via challan. The correct classification of CGST and SGST payable accounts under 'duties and taxes' is also confirmed.

Megha Kushwaha

2 Points Posted on 16 September 2020

Correct

Mohd Khalid

493 Points Posted on 16 September 2020

But someone told me that if we pay tax to gov through bank or through Challan than entry for this will be
CGST input Dr
SGST input Dr
To Bank/Cash

prasad Nilugal

3924 Points Posted on 16 September 2020

You pass the entry as follows

Out put CGST A/c Dr 600/-
Out put SGST. A/c Dr. 600/-
To Input CGST. A/c Cr. 500 / To Input SGST. A/c. Cr. 500/-
To CGST Payable A/c. Cr. 100/-
To SGST payable. AC. Cr 100/-
( GST payable )

Payment entry

CGST A/c Payable.Dr 100/-
SGST. A/c Payable Dr 100/-
To Bank A/c. Cr 200/-
( payment to Govt account ).