GST Accounting impact on P&L

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Accountant for multiple small entities
171 Points Posted on 05 December 2022
Hi Sir/ Madam

Will GST net liability payment I.e after deducting itc
Have any impact on p&l statement
igst is created under duties and taxes which is under current liability in our tally
I understand as this is current liability won't impact p&l
please advise
Thanks in advance
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On 05 December 2022 at 18:30 Report
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Quick Summary
This discussion clarifies the impact of GST accounting on a Profit & Loss (P&L) statement. It explains that GST net liability, after deducting Input Tax Credit (ITC), is treated as a current liability and therefore does not directly impact the P&L. All GST collected and paid is recorded in the balance sheet under assets and liabilities, separate from the P&L.

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Accounts & Finance Professional
19 Points Posted on 05 December 2022

You need to take admission on class 11 commerce . All Liabilities are part of Balance Sheet only.

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On 05 December 2022 at 20:56
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Finance
4592 Points Posted on 24 April 2023

Yes. All gst from sales and purchases is taken to assets and liabilities. But the corporate taxes are calculated below pbt and before arriving at par. Usually taxes are paid one year in arrears. 

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On 24 April 2023 at 15:03

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