You have already known the difference between TDS under Income tax law and GST Law. TDS under GST is advance GST which will be deducted who will pay for bought goods or service and deposit in Govt. Account. During paying actual GST in Govt. account, debtor will have the right to get input credit of past advance GST in the form of TDS. TDS under GST is 2%. 1% CGST and 1% SGST.
Now, it will be easy for you to pass the journal entry of TDS under GST.
A Situation # If GST is exempt when supply of Goods or Service
In the books of Debtor (Govt. Department or exempted items under GST )
Creditor Account Debit
Bank Account Credit
TDS - CGST Account Credit
TDS - SGST Account Credit
In the books of Creditor
Bank Account Debit
TDS - CGST Account Debit
TDS - SGST Account Debit
Debtor Account (Govt. Department or exempted items under GST ) Credit
For Example Mr. A supplied exempted goods to Govt. Department of Rs. 1 Lakh and TDS under GST is 1% CGST and 1% SGST
In the books of A ( who is creditor )
Bank Account Debit 98000
TDS - CGST Account Debit 1000
TDS - SGST Account Debit 1000
Debtor Account (Govt. Department or exempted items under GST ) Credit 1,00,000
In the books of Govt. Department ( who is debtor of A )
Creditor Account Debit
Bank Account Credit 98000
TDS - CGST Account Credit 1000
TDS - SGST Account Credit 1000
B Situation # If GST and TDS under GST both applies { Learn Only GST Journal Entries }
In the books of Debtor ( Who bought the Goods )
When bought goods on Credit
Purchase A/c Dr.
Input CGST A/c Dr.
Input SGST A/c Dr.
Creditor A/c Cr.
{ Total payable amount will increase with GST amount }
When payment will be done to Creditor
Creditor Account Debit
Bank Account Credit
TDS - CGST Account Credit
TDS - SGST Account Credit
{ Payment to creditor will decrease with TDS under GST and same TDS under GST will deposit by debtor to Govt. account }
Example
Mr. A Bought Goods from Mr. B of Rs. 100,000 and GST is 18% and TDS under GST is 2%. Pass the journal entries
In the Books of A
When bought goods on Credit
Purchase A/c Dr. 1,00,000
Input CGST A/c Dr. 9000
Input SGST A/c Dr. 9000
B A/c Cr. 1,18,000
When payment will be done to Creditor
Creditor Account Debit 1,18,000
Bank Account Credit 1,15,640
TDS - CGST Account Credit 1180
TDS - SGST Account Credit 1180
{ Payment to creditor will decrease with TDS under GST and same TDS under GST will deposit by debtor to Govt. account }
When TDS under GST will pay to Govt. Account
TDS - CGST Account Debit 1180
TDS - SGST Account Debit 1180
Bank Account ( Govt. Department ) Account Credit 1180
In the books of Creditor ( Who bought the Goods )
When sell goods on credit
Debtor A/c Dr.
Sales A/c Cr.
Output CGST A/c Cr.
Output SGST A/c Cr.
{ Total receivable amount will increase with GST amount because its duty of seller to deposit GST to Govt. Department }
When Payment will Receive
Bank Account Debit
TDS - CGST Account Debit
TDS - SGST Account Debit
Debtor Account Credit
{ Actual payment receive from debtor will decrease with TDS under GST and same TDS under GST will deposit by debtor to Govt. account }
Example :
Mr. A Bought Goods from Mr. B of Rs. 100,000 and GST is 18% and TDS under GST is 2%. Pass the journal entries
When sell goods on credit
A A/c Dr. 1,18,000
Sales A/c Cr. 1,00,000
Output CGST A/c Cr. 9000
Output SGST A/c Cr. 9000
{ Total receivable amount will increase with GST amount because its duty of seller to deposit GST to Govt. Department }
When Payment will Receive
Bank Account Debit 115640
TDS - CGST Account Debit 1180
TDS - SGST Account Debit 1180
Debtor Account Credit 1,18,000
{ Actual payment receive from debtor will decrease with TDS under GST and same TDS under GST will deposit by debtor to Govt. account }
GST Paid by Creditor or Seller to Govt. Department
Output CGST Account Debit 9000
Output CGST Account Debit 9000
Bank Account Credit ( Govt. Account ) 18000
Bank Account Debit 2360
TDS - CGST Account Credit 1180
TDS - SGST Account Credit 1180
