Accounting Entries in GST
Case-I
Local (Intra-state)
Purchase (18%) Rs. 1,00,000/-
|
Purchase A/c Dr. |
1,00,000 |
|
|
Input CGST A/c Dr. |
9,000 |
|
|
Input SGST A/c Dr. |
9,000 |
|
|
To Creditors/Bank A/c |
1,18,000 |
Sale (18%) Rs. 1,50,000/-
|
Debtors/Bank A/c Dr. |
1,77,000 |
|
|
To Sales A/c |
1,50,000 |
|
|
To Output CGST A/c |
13,500 |
|
|
To Output SGST A/c |
13,500 |
Legal consultation fees (any exps.) Rs. 10,000
|
Legal fees A/c Dr. |
10,000 |
|
|
Input CGST A/c Dr. |
900 |
|
|
Input SGST A/c Dr. |
900 |
|
|
To Bank A/c |
11,800 |
Purchase of Fixed asset for office for Rs. 30,000
|
Fixed asset A/c Dr. |
30,000 |
|
|
Input CGST A/c Dr. |
2,700 |
|
|
Input SGST A/c Dr. |
2,700 |
|
|
To Bank A/c |
35,400 |
Total Input CGST=9,000+900+2,700= Rs. 12,600
Total output CGST=13,500
Therefore Net CGST payable=13,500-12,600=900
|
Output CGST A/c Dr. |
13,500 |
|
|
To Input CGST A/c |
12,600 |
|
|
To CGST payable A/c |
900 |
Total Input SGST=9,000+900+2,700= Rs. 12,600
Total output SGST=13,500
Net SGST payable=13,500-12,600=900
|
Output SGST A/c Dr. |
13,500 |
|
|
To Input SGST A/c |
12,600 |
|
|
To SGST payable A/c |
900 |
Payment Entry
Net CGST Payable + SGST Payable=1,800
But if, amount paid by bank=2,000 (assume any amount higher than payable),
Then Balance Left in GST PMT-05 = paid- Payable= 2,000-1,800 = 200/-(extra) and such Balance will be adjusted against GST Payable for the next period
|
Electronic Cash Ledger(GST PMT-05).Dr. |
2,000 |
|
|
To Bank A/c |
2,000 |
Entry for GST Liability adjusted against Electronic Cash Ledger (GST PMT-05)
|
CGST Payable Dr. |
900 |
|
|
To Electronic Cash Ledger (GST PMT-05) A/c |
900 |
|
SGST Payable Dr. |
900 |
|
|
To Electronic Cash Ledger (GST PMT-05) A/c |
900 |
Case-II
Inter-state.
Purchase (other state) (18%) Rs. 1,00,000/-
|
Purchase A/c Dr. |
1,00,000 |
|
|
Input IGST A/c Dr. |
18,000 |
|
|
To Creditors A/c |
1,18,000 |
Sale (same State) (18%) Rs. 1,50,000/-
|
Debtors A/c Dr. |
1,77,000 |
|
|
To Sales A/c |
1,50,000 |
|
|
To Output CGST A/c |
13,500 |
|
|
To Output SGST A/c |
13,500 |
Sale(other State) (18%) Rs.80,000/-
|
Debtors A/c Dr. |
94,400 |
|
|
To Sales A/c |
80,000 |
|
|
To Output IGST A/c |
14,400 |
Any Exps.
|
Any Expenses A/c....Dr. |
5,000 |
|
|
Input CGST A/c ..Dr. |
450 |
|
|
Input SGST A/c Dr. |
450 |
|
|
To Bank A/c |
5,900 |
|
Total Output CGST |
13,500 |
|
Total Input CGST |
450 |
|
Total Output SGST |
13,500 |
|
Total Input SGST |
450 |
|
Total Output IGST |
14,400 |
|
Total Input IGST |
18,000 |
The order in which credit needs to be set off is explained in the table below:
|
Input Tax Credit |
Set off against liability |
|
CGST (Central GST) |
CGST and IGST (in that order) |
|
SGST (State GST) |
SGST and IGST (in that order) |
|
IGST (integrated GST) |
IGST, CGST, SGST (in that order) |
Any IGST credit will first be applied to set off IGST and then CGST. Balance if any will be applied to setoff SGST.
In this case Total ITC of IGST applied against liability of IGST and CGST, so no balance left for SGST.
|
Particulars |
CGST |
SGST |
IGST |
|
Output liability |
13,500 |
13,500 |
14,400 |
|
Less: Input tax credit |
|||
|
CGST |
450 |
||
|
SGST |
450 |
||
|
IGST |
3,600 |
14,400 |
|
|
Amount payable |
9,450 |
13,050 |
NIL |
Adjustment Entries
|
Setoff against CGST output |
|||
|
1 |
Output CGST Dr. |
4,050 |
|
|
To Input CGST A/c |
450 |
||
|
To Input IGST A/c |
3,600 |
||
|
2 |
Setoff against SGST output |
||
|
Output SGST Dr. |
450 |
||
|
To Input SGST A/c |
450 |
||
|
3 |
Setoff against IGST output |
||
|
Output IGST Dr. |
14,400 |
||
|
To Input IGST A/c |
14,400 |
||
|
4 |
Final payment |
||
|
Output CGST A/c Dr. |
9,450 |
||
|
Output SGST A/c Dr. |
13,050 |
||
|
To Electronic Cash Ledger (GST PMT-05) A/c |
22,500 |
Please refer all the relevant sections, rules, amendments and consider all the necessary requirements as applicable. I am not responsible for any losses caused or incurred.
CAclubindia
