Rcm accounting entries

Good Afternoon Members.

Please help me in accounting entries relating to RCM under GST on Transport Agency.

In May 2019, the taxpayer has a transport bill from ABC Transport Agency of Rs. 1000/-. RCM of Rs. 50/- (Rs. 25 each under CGST and SGST) will be payable by the taxpayer.

Do the taxpayer need to pay the RCM GST Output or it can be adjusted against GST Input available. How the accounting entries will be recorded for the same?

Please help.

Thanks 

Replies (6)
Is a Transporter GTA ?. and issued consignment note .

Yes.

RCM Liability cannot be adjusted with credits will have to pay cash for it. However ITC can be claimed for GST paid in cash

No , you cannot adjust RCM payable against Your credit ledger. , have to deposit tax & adjust it against cash ledger

RCM Input A/c. dr
To RCM CGST payable A/c
To RCM SGST payable A/c

on payment :

RCM payable CGST A/c Dr
RCM payable SGST A/c Dr
To Bank

can we take BANK CHARGES ITC AND ADJUST IN OUR OUT PUT

 

@ C R Radhakrishnan. Yes you can take ITC and adjust with output tax

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