accounting tratment of gst on composition
Satish Kavitake (389 Points)
08 May 2018
pl clarify on accounting treatment of gst charged on purchase bill by supplier and gst paid on sales
6 Replies
satish
(teaching)
(2046 Points)
Replied 08 May 2018
GST on purchase is to be add to inventory cost. no input tax credit.
GST on sales is to be considered as tax paid on sales. ( indirect exp)
GST on sales is to be considered as tax paid on sales. ( indirect exp)
Fatin Nizami
(338 Points)
Replied 08 May 2018
For Purchases:
Purchase A/c Dr
GST A/c Dr
To Supplier/ Bank A/c
For Sales:
Customer/ Bank A/c Dr
To Sales A/c
To GST A/c
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 08 May 2018
Purchase :
At the time of purchase no way for claim ITC. So, Total purchase bill value enter in purchase account...
Dr. Purchase A/c - XXX
Cr. Supplier A/c - XXX...
Sales
At the time of Sales no way for charge GST in the BOS. As per BOS
Dr. Customers A/c - XXX
Cr. Sales A/c - XXX...
Tax Paid :
As per GST composition dealer will be pay Tax @ 1% (CGST @ 0.5% & SGST @ 0.5%). Both head will be prepare under Expense head...
Dr. CGST @ 0.5% - XXX
Dr. SGST @ 0.5% - XXX
Cr. Bank A/c - XXXX.....
At the time of purchase no way for claim ITC. So, Total purchase bill value enter in purchase account...
Dr. Purchase A/c - XXX
Cr. Supplier A/c - XXX...
Sales
At the time of Sales no way for charge GST in the BOS. As per BOS
Dr. Customers A/c - XXX
Cr. Sales A/c - XXX...
Tax Paid :
As per GST composition dealer will be pay Tax @ 1% (CGST @ 0.5% & SGST @ 0.5%). Both head will be prepare under Expense head...
Dr. CGST @ 0.5% - XXX
Dr. SGST @ 0.5% - XXX
Cr. Bank A/c - XXXX.....
srikumar
(audit staff)
(1203 Points)
Replied 08 May 2018
no gst input so it will added purchase cost
Satish Kavitake
(389 Points)
Replied 08 May 2018
ok thanks. it means both gst on purchase and gst paid on sales will be considered as expenses only
srikumar
(audit staff)
(1203 Points)
Replied 08 May 2018
purchase gst as expenses, sales output tax u paid tax with own money
Recent Topics
- Clarity regarding Sec 16(4)
- GST ON HOTEL ROOMS details
- Relief for Delayed Filing of Tax Forms
- Expire stock
- INCOME TAX AY 25-26
- Experienced CA firm for accounting & auditing
- Regarding Perquisite Tax on ESOP - Unlisted Compan
- Casual Taxable Person under GST
- Extended Date of GSTR-1 for the month of July 2020
- NRO Interest - Taxed at source and in Foreign Coun
Related Threads
CAclubindia
