GST Accounting Entries for Intra state Transactions (i.e. within the State)
Mr. A purchased goods Rs. 2,00,000 locally (intrastate). He sold them for Rs. 3,00,000 in the same state. He paid legal consultation fees Rs. 10,000. He purchased furniture for his office for Rs. 40,000 from XYZ Furniture
(Assuming CGST @8% and SGST@8%)
| Sr. No. | Particulars | Dr. | Cr. |
|---|---|---|---|
| 1 | Purchase A/c ………………Dr. | 200,000.00 | |
| Input CGST A/c ……………Dr. | 16,000.00 | ||
| Input SGST A/c ……………Dr. | 16,000.00 | ||
| To Creditors A/c | 232,000.00 | ||
| 2 | Debtors A/c ………………Dr. | 348,000.00 | |
| To Sales A/c | 300,000.00 | ||
| To Output CGST A/c | 24,000.00 | ||
| To Output SGST A/c | 24,000.00 | ||
| 3 | Legal fees A/c …………….Dr. | 10,000.00 | |
| Input CGST A/c ……………Dr. | 800.00 | ||
| Input SGST A/c ……………Dr. | 800.00 | ||
| To Bank A/c | 11,600.00 | ||
| 4 | Furniture A/c …………….Dr. | 40,000.00 | |
| Input CGST A/c ……………Dr. | 3,200.00 | ||
| Input SGST A/c ……………Dr. | 3,200.00 | ||
| To XYX Furniture A/c | 46,400.00 | ||
| 5 | Output CGST A/c ……………Dr. | 24,000.00 | |
| Output SGST A/c ……………Dr. | 24,000.00 | ||
| To Input CGST A/c | 20,000.00 | ||
| To Input SGST A/c | 20,000.00 | ||
| To Electronic Cash Ledger A/c | 8,000.00 | ||
| 686,000.00 | 686,000.00 |
• GST Accounting Entries for Inter state transactions (i.e Outside the State)
Mr. X purchased goods Rs. 3,00,000 from outside the State. He sold Rs. 3,00,000 locally. He sold Rs.2,00,000 outside the state. He paid telephone bill Rs. 10,000. He purchased an A/C for his office for Rs. 24,000 (locally) Assuming CGST @8% and SGST@8%
| Sr. No. | Particulars | Dr. | Cr. |
|---|---|---|---|
| 1 | Purchase A/c ………………Dr. | 300,000.00 | |
| Input IGST A/c ……………Dr. | 48,000.00 | ||
| To Creditors A/c | 348,000.00 | ||
| 2 | Debtors A/c ………………Dr. | 348,000.00 | |
| To Sales A/c | 300,000.00 | ||
| To Output CGST A/c | 24,000.00 | ||
| To Output SGST A/c | 24,000.00 | ||
| 3 | Debtors A/c ………………Dr. | 232,000.00 | |
| To Sales A/c | 200,000.00 | ||
| To Output IGST A/c | 32,000.00 | ||
| 4 | Telephone Expenses A/c …..Dr. | 10,000.00 | |
| Input CGST A/c ………………..Dr. | 800.00 | ||
| Input SGST A/c ………………..Dr. | 800.00 | ||
| To Bank A/c | 11,600.00 | ||
| 5 | Office Equipment A/c……Dr. | 24,000.00 | |
| Input CGST A/c ……………Dr. | 1,920.00 | ||
| Input SGST A/c ……………Dr. | 1,920.00 | ||
| To ABC Furniture Shop A/c | 27,840.00 | ||
| Setoff against CGST output | |||
| Output CGST ………………Dr. | 18,720 | ||
| To Input CGST A/c | 2,720 | ||
| To Input IGST A/c | 16,000 | ||
| 2 | Setoff against SGST output | ||
| Output SGST ………………Dr. | 2,720 | ||
| To Input SGST A/c | 2,720 | ||
| 3 | Setoff against IGST output | ||
| Output IGST ………………Dr. | 32,000 | ||
| To Input IGST A/c | 32,000 | ||
| 4 | Final payment | ||
| Output CGST A/c ……………Dr. | 5,280 | ||
| Output SGST A/c ……………Dr. | 21,280 | ||
| To Electronic Cash Ledger A/c | 26,560 | ||
| 1047440 | 1047440 |
• GST Accounting Entries for Intra State Transactions (i.e. within the State)
Total Input CGST = 16,000+800+3,200 = Rs. 20,000
Total Input SGST = 16,000+800+3,200 = Rs. 20,000
Total output CGST = 24,000
Total output SGST = 24,000
Therefore Net CGST payable = 24,000-20,000 = 4,000 & Net SGST payable = 24,000-20,000 = 4,000
Thus, Output liability of Rs. 48,000 has been adjusted with Input tax credit of Rs. 40,000. So, net tax liability of CGST is Rs. 4,000 and SGST Rs. 4,000
• GST Accounting Entries for Inter State transactions (i.e Outside the State)
Total CGST input =800+1920=2,720
Total CGST output =24,000
Total SGST input =800+1920=2,720
Total SGST output =24,000
Total IGST input =48,000
Total IGST output =32,000
Note: Any IGST credit will first be applied to set off IGST and then CGST. So out of total input IGST of Rs. 48,000, firstly it will be completely setoff against IGST. Then balance Rs. 16,000 against CGST.
From the total liability Rs. 80,000, only Rs. 26,560 is payable
Particulars CGST SGST IGST
Output liability 24,000 24,000 32,000
Less: Input tax credit
CGST (Telephone+Office) 2,720
SGST (Telephone+Office) 2,720
IGST 16,000 32,000
Amount payable 5,280 21,280 NIL
| Sr. No. | Particulars | Dr. | Cr. |
|---|---|---|---|
| • If purchases are made within the state (Intra State) | |||
| 1 | Purchase A/c ………………Dr. | 200,000.00 | |
| Input CGST A/c ……………Dr. | 16,000.00 | ||
| Input SGST A/c ……………Dr. | 16,000.00 | ||
| To Creditors or Cash BankA/c | 232,000.00 | ||
| • If purchases are made from other state (Inter State) | |||
| 2 | Purchase A/c ………………Dr. | 300,000.00 | |
| Input IGST A/c ……………Dr. | 48,000.00 | ||
| To Creditors or Cash BankA/c | 348,000.00 | ||
| • If purchases are made from Outside India (Import) | |||
| 3 | Purchase A/c ………………Dr. | 200,000.00 | |
| Input IGST A/c ……………Dr. | 32,000.00 | ||
| To Creditors or Cash BankA/c | 200,000.00 | ||
| To IGST Payable A/c. | 32,000.00 | ||
| (Reverse charge mechanism applies here) |
| Sr. No. | Particulars | Dr. | Cr. |
|---|---|---|---|
| • If Sales are made within the state (Intra State) | |||
| 1 | Debtors A/c.or Cash/Bank A/c.-Dr | 216,000.00 | |
| To Sales A/c. ————— Cr. | 200,000.00 | ||
| To Output CGST A/c. —- Cr. | 16,000.00 | ||
| To Output SGST A/c. —- Cr. | 16,000.00 | ||
| • If sales are made from other state (Inter State) | |||
| 2 | Debtors A/c.or Cash/Bank A/c.-Dr | 232,000.00 | |
| To Sales A/c. ————— Cr. | 200,000.00 | ||
| To Output IGST A/c. —- Cr. | 32,000.00 | ||
| • If sales are made outside the Country (Export) | |||
| 3 | Debtors A/c. or Cash/Bank A/c. -Dr. | 200,000.00 | |
| To Sales (Export) A/c. ————-Cr. | 200,000.00 | ||
| (Export sale is Exempt) |
| Sr. No. | Particulars | Dr. | Cr. |
|---|---|---|---|
| • If any expenditure are incurred within the state (Intra State) | |||
| 1 | Expenditure A/c ………………Dr. | 200,000.00 | |
| Input CGST A/c ……………Dr. | 16,000.00 | ||
| Input SGST A/c ……………Dr. | 16,000.00 | ||
| To Creditors or Cash BankA/c | 232,000.00 | ||
| • If expenditure are incurred from other state (Inter State) | |||
| 2 | Expenditure A/c ………………Dr. | 300,000.00 | |
| Input IGST A/c ……………Dr. | 48,000.00 | ||
| To Creditors or Cash BankA/c | 348,000.00 | ||
| • If expenditure are incurred from Outside India (Import) | |||
| 3 | Expenditure A/c ………………Dr. | 200,000.00 | |
| Input IGST A/c ……………Dr. | 32,000.00 | ||
| To Creditors or Cash BankA/c | 200,000.00 | ||
| To IGST Payable A/c. | 32,000.00 | ||
| (Reverse charge mechanism applies here) |
Examples of GST Entry for Purchase of Asset:
Sr. No. Particulars Dr. Cr.
• If any asset is purchased within the state
1 Assest A/c ………………Dr. 200,000.00
Input CGST A/c ……………Dr. 16,000.00
Input SGST A/c ……………Dr. 16,000.00
To Creditors or Cash BankA/c 232,000.00
• If any asset is purchased from other state (Inter State)
2 Assest A/c ………………Dr. 300,000.00
Input IGST A/c ……………Dr. 48,000.00
To Creditors or Cash BankA/c 348,000.00
• If any asset is purchased from other Country (Import)
3 Assest A/c ………………Dr. 200,000.00
Input IGST A/c ……………Dr. 32,000.00
To Creditors or Cash BankA/c 200,000.00
To IGST Payable A/c. 32,000.00
(Reverse charge mechanism applies here)
Entry for set off & Payment GST:
To set off & Payment Output SGST
Output SGST A/c. ——Dr.
To Input SGST A/c. ——Cr.
To Input IGST A/c.** ——- Cr.
To Electronic Cash ledger A/c. ——Cr.
(** Input IGST credit is allowed for setting off Output SGST liability. But after setting of Output IGST liability, Output CGST liability. )
To set off & Payment Output CGST
Output CGST A/c. ——Dr.
To Input CGST A/c. —– Cr.
To Input IGST A/c.** ——- Cr.
To Electronic Cash ledger A/c. ——Cr.
(** Input IGST credit is allowed for setting off Output CGST liability. But after setting of Output IGST liability. )
To set off & Payment Output IGST
Output IGST A/c. ——Dr.
To Input IGST A/c. —– Cr.
To Electronic Cash ledger A/c. —– Cr.
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