GST REVERSE CHARGE

This query is : Resolved

P. SHARMA (Querist)
Follow

27 April 2020 XYZ raise the bill to ABC Amount of Rs 22500/- . SGST Rate 5% , CGST Rate 5%.

How I calculate the GST under Reverse Charge Method.

What will be the accounting entry.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

05 May 2020 You have to calculate the Reverse Charge on total amount incld GST. i.e, Reverse Charge GST @ 12% x Rs. 22,500/- = Total GST @ 12% Rs. 2700 (CGST Rs. 1350 & SGST Rs. 1350)

Purchase A/c Dr. 22,500/-
CGST Input @ 6% Dr. 1350/-
SGST Input @ 6% Dr. 1350/-
CGST @ 6% Payable - Cr. 1350/-
SGST @ 6% Payable - Cr. 1350/-
Accounts Payable / Bank / Cash Account - Cr. 22,500/-

Hope it is clear now...

Message likes : 1 times