222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Latest $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Accounting Treatment of GST in India



Before coming of GST Law 2016, as business persons, we were focused to do accounting treatment of Excise, VAT and service tax separately. Now, all these three tax have merged into one indirect taxation system. So, we need to keep accounting records for different tax separately. We will now keep consolidated accounting information and we are ready to show how much our total tax liability of goods and services which we have provided to others which we already received from our customers.

Remember Don't 

Some accountants are old and after coming GST, they have to leave the following habit of recording.

1. Don't pass the entry of Service tax. Don't open service tax account. Don't show service tax in bill register, receipt register, debit/credit notes register, Cenvat credit register. If you have received service tax from customer, you have to pass the GST entry and open GST account.

2. Don't pass Excise entries. Don't record excise duty through daily stock account register of excisable goods, register of receipt and issue of raw material, invoice book and job work register. Only pass the GST entries and keep GST record for material supplies or supplies inward.

3. Don't pass the VAT entries in the form of input VAT and Output VAT for buying and selling of Goods. Don't make record of purchase and Sales with VAT. Only GST will be recorded with purchase and sales.

4. No need of following Account in your books. 

Excise payable a/c (for manufacturers)
CENVAT credit a/c (for manufacturers)
Output VAT a/c
Input VAT a/c
Input Service tax a/c
Output Service tax a/c

Following Records will be kept

Now, Every business will have registration certificate for stock's outward supply and inward supply and it will be his principle place. If business is done more than one place, each place of business account will maintained differently for accounting records of GST.

1. GST Record on supplies of goods and services inward for manufacturing of goods.
2. GST on Inward and outward supplies of goods and services for trading
3. Input Tax Credit of GST
4. Output GST Payable and paid

Following account will open

Input CGST a/c
Output CGST a/c
Input SGST a/c
Output SGST a/c
Input IGST a/c
Output IGST a/c

Example of Accounting Treatment of GST in India 

Intra-state Transactions ( Buyer and Seller in Same State) 

Mr. A buy goods of Rs. 2,00,000 from Mr. C
Mr. A sold goods to Mr. B Rs. 1,40,000
He paid Internet Bill of Rs. 2000
GST is 18% which is divided equal to CGST 9% and 9% SGST


1. Journal Entry of Purchase with GST 

Purchase A/c Dr. 2,00,000
Input CGST A/c Dr.    18,000
Input SGST A/c Dr.    18,000
Mr. C (Creditor) A/c Cr. 2,36,000

2. Journal Entries of Sale with GST


Mr. B (Debtor) A/c Dr. 1,65,200
             Sales A/c Cr. 1,40,000
             Output CGST A/c Cr. 12,600
            Output SGST A/c Cr. 12,600

3. Journal Entries for Taken Service Expenses with GST

Internet Expenses A/c Dr. 2,000
Input CGST A/c Dr. 180
Input SGST A/c Dr. 180
          Bank A/c Cr. 2,360


Total Input CGST=18,000+180 = Rs. 18,180
Total Input SGST=18,000+180 = Rs. 18,180
Total output CGST=12,600
Total output SGST=12,600
Therefore Net CGST Receivable=18,180-12600=5580
Net SGST Receivable=18180-12600= 5580

4. Net Balance of GST Paid or Received 


Cash Electronic ledger A/c ( Balance figure)  Dr. 11160
( Received amount through GST Portal)
Output CGST A/c Dr. 12,600
Output SGST A/c  Dr. 12,600
          Input CGST A/c Cr. 18180
        Input SGST A/c Cr. 18180

Comments

 


Name

access,2,account,86,accountant,95,Accounting,685,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,88,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,7,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,8,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,145,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,6,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,3,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Accounting Treatment of GST in India
Accounting Treatment of GST in India
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhL45MZLvy9J253FfkBK2A_FQKvibuRGKBjwXMkpzicr58xdeEYulj_nyQ0Vj92wv3_CMONGciYwHtQIiCqNsKm9gjLDhaECiA-Dns_25L7QQsGkoVWPaPtocdNAreZuqCdo5lPbcAndaQ/s640/gst+tax+liability.PNG
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhL45MZLvy9J253FfkBK2A_FQKvibuRGKBjwXMkpzicr58xdeEYulj_nyQ0Vj92wv3_CMONGciYwHtQIiCqNsKm9gjLDhaECiA-Dns_25L7QQsGkoVWPaPtocdNAreZuqCdo5lPbcAndaQ/s72-c/gst+tax+liability.PNG
Accounting Education
https://www.svtuition.org/2017/04/accounting-treatment-of-gst-in-india.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2017/04/accounting-treatment-of-gst-in-india.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy