Accounting Entries for Reverse charge
Ajit kumar (Article Assistant) (31 Points)
04 December 2017
Please tell me the accounting entry for Reverse charges under GST.
3 Replies
Bhavleen Kaur Oberoi
(Chartered Accountant)
(228 Points)
Replied 04 December 2017
Let's take example of transportation service
at the time of availing transportation services
entry would be
transportation services Dr
to xyz transporter
at the time of recording liability of reverse charge
entry would be
tax reversal charges a/c Dr
to cgst
to sgst
at the time of taking credit of reverse charge liability on such services I.e after making payment of above reverse charge liability
cgst input a/c Dr
sgst input a/c Dr
to tax reversal charges
Also instead of cgst and sgst , igst could also be levied in case of inter state supplies
at the time of availing transportation services
entry would be
transportation services Dr
to xyz transporter
at the time of recording liability of reverse charge
entry would be
tax reversal charges a/c Dr
to cgst
to sgst
at the time of taking credit of reverse charge liability on such services I.e after making payment of above reverse charge liability
cgst input a/c Dr
sgst input a/c Dr
to tax reversal charges
Also instead of cgst and sgst , igst could also be levied in case of inter state supplies
Ajit kumar
(Article Assistant)
(31 Points)
Replied 05 December 2017
Thanks for your response. One more thing, what about the payment entry for gst?
Bhavleen Kaur Oberoi
(Chartered Accountant)
(228 Points)
Replied 05 December 2017
Payment entry would come after the second entry as mentioned above which is as follows:-
CGST Dr
SGST Dr
to Bank /Cash
Recent Topics
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
- Ammendment in Partnership On Death of Partner and
- TDS Provisions applicability Tax Audit Individual
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
- Solving of Export Related Problems
Related Threads
CAclubindia
