GST Revese charge

This query is : Resolved

Nishad (Querist)
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22 November 2019 Dear Expert,

We had received an Invoice for Sponsorship of an Event

Taxble Value is 100000
GST 18% 18000

Amount Tax subject to Reverse charge 18000

What is the accounting entries of expense booking and GST payment entry

This GST amoun is eligible for ITC ?

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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22 November 2019 Concerned expenses Debit 100000
GST ITC Debit 18000
Vendor Credit 118000

RCM
GST ITC RCM Debit 18000
GST ITC RCM payable Credit 18000

Payment of GST
GST RCM Payable Debit 18000
Bank account Credit 18000

Nishad

Nishad (Querist)
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23 November 2019 Sir,

Vendor Bill amount only 100000
because the GST amount reverse charge
Payable only 100000 ?
GST ITC RCM Debit 18000 a/chave balance, need to zero balance?
pls confirm

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A.S.SUNDARARAJAN

A.S.SUNDARARAJAN (Expert)
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23 November 2019 Concerned expenses debit Rs.100000
GST ITC RCM Debit Rs.100000
Vendor Credit Rs.100000
GST ITC payable RCM Credit Rs.100000

You may have one more control ledger of GST Payable and month end balance of ITC and output tax laibility may be transferred to that ledger.

GST Out tax laibillity Debit 18000
GST payable Credit 18000

GST payable Debit 18000
GST ITC Credit 18000

Here GST payale ledger balance is nil and no payment is to be made