05 June 2021
While preparing profit and loss account , whether the sales is including GST or excluding GST? What is the accounting treatment ? In the same way when GST is deposited by firm into govt account ,whether it is an expense?
05 June 2021
Sales is excluding gst.
Gst on sales if not paid is outstanding liability.
Where gst amount is recovered from buyer then it does not affect p&l but if gst amount is not recovered from buyer then that amount is charged to expense.
06 June 2021
GST on sales is not part of P&L GST on purchase (eligible input tax credit) is an asset and that on sales will be a liability. When payment is made to the govt, this liability either gets reduced or zeroed.
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