Say, when we buy from unregistered dealer, we need to entry for both input and output gst like
Purchase AC Dr rs 10000
Input Gst rs 100
to Output Gst. rs 100
to creditor rs 10000
then I need to pay rs 100 to govt (say we are not sale the good) and take input credit for rs 100 but my above journal net payable is 0.
what is the entry need to create for that??
1. purchase a/c dr 10000
to creditor a/c 10000
2. input gst a/c dr. 100
gst payable on RCM a/c 100
(here separate account has been created for gst payable on RCM to recognise it as it has to be paid in cash, as in earlier laws reverse charge liability could not be paid through cenvat credit. in gst however it is not clear yet that whether we can pay gst on reverse charge basis through input credit or not. there are right now no restrictions of such that but I think clarification is needed from the department on this. on any case it is good practice to make separate account for gst liability of RCM.
3. gst payable on RCM a/c dr. 100
cash/bank a/c. 100
(assuming input cannot be used for RCM liability)
OR
gst payable on RCM a/c dr. 100
input gst a/c 100
(assuming input can be used)
CAclubindia
