Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

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

Reply
Follow
Share

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)

Upgrade to CAclubindia Pro. Subscribe Now!

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...!!!") (127962 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.....

1 Like