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GST & Accounting Entries in GST ERA

GST & Accounting Entries in GST ERA – ALSO ITS EFFECT ON GSTR 3B RETURN

Let’s understand this with the help of Example. In the given Example Mr. x has the following transaction of Sale, Purchase, & some expenses like Repairs & Advocate Fees.

Question. Mr. X has following transactions in Month of March 18. Please pass Accounting entries & show its effect on GSTR 3b. Please show all Accounting entries in his books of account.
  Accouting entry No sales to BASIC CGST SGST IGST TOTAL
sales 1 MR. A ₹ 3,000 ₹ 270 ₹ 270   ₹ 3,540
2 transactions in March 2 MR. B ₹ 2,000     ₹ 360 ₹ 2,360
               
               
    Purchase from BASIC CGST SGST IGST TOTAL
Purchase 3 MR. C ₹ 1,700     ₹ 306 ₹ 2,006
2 Transactions in March 4 MR. D ₹ 1,600 ₹ 144 ₹ 144   ₹ 1,888
               
Frieght paid   paid to BASIC CGST SGST IGST TOTAL
1 Transaction in March 6 MR. E ₹ 500       ₹ 500
              PAY RCM @ 5%
Advocate Fees   Paid to BASIC CGST SGST IGST TOTAL
1 Transaction in March 7 MR. F ₹ 100       ₹ 100
              PAY RCM @18%
               
Expensses with GST lavied   paid to BASIC CGST SGST IGST TOTAL
For E.g  Repair Exp. 8 MR. G ₹ 600 ₹ 54 ₹ 54   ₹ 708
( Party is registered )              
               
Expensses without GST   Paid to BASIC CGST SGST IGST TOTAL
For E.g Repair exp 9 MR. H ₹ 400 NA NA NA ₹ 400
( party is not registerd)              

 

ACCOUNTING ENTRIES  in Books of Mr. X
Accouting Entry for Sales to Mr.A 1. Mr. A Dr.   3540  
  to sales a/c   3000
  to CGST payable   270
  to SGST payable   270
Accounting Entry for Sales to Mr. B 2. Mr. B                     Dr.     2360  
  to sales a/c   2000
  to IGST payable   360
Accouting Entry for Purchase made from Mr. C 3. Purchase   A/c   dr. 1700  
  IGST receivable   dr. 306  
  to Mr. C   2006
Accouting Entry for Purchases Made from Mr. D 4. Purchase   A/c   Dr. 1600  
  CGST receivable   dr. 144  
  SGST receivable   dr. 144  
  to Mr. D   1888
Frieght paid to Mr.E 5. Frieght exp.          Dr.     500  
  to Mr. E   500
RCM on Freight need to be discharged by Mr. x in Cash/
Bank
  RCM – CGST              dr. 12.5  
RCM – SGST              dr. 12.5  
to Cash/ Bank   25
(payment of RCM)
Advocate Fees paid to Mr. F 6. Adv. Fee.               Dr.     100  
  to Mr. F   100
RCM on Advocate fees  need to
be discharged by Mr. x in Cash/ Bank
  RCM – CGST              dr. 9  
RCM – SGST              dr. 9  
to Cash/ Bank   18
(payment of RCM)
Accounting Entry for Repair exp. Since invoice from Mr. G is GST levied. So we have taken
ITC.
7.      Repair   Exp.                Dr. 600  
  CGST receivable dr. 54  
  SGST receivable dr. 54  
  to Mr. G   708
Repair exp paid to Mr. H . Since Mr. H is unregistered so He has not levied GST 8.      Repair exp.              Dr. 400  
  to Mr. H   400
Final payment of CGST & SGST & IGST 9             FINAL ADJUSTMENT
  SGST payable          dr. 270  
to SGST receivable   198
to Cash/ Bank   72
    IGST payable          dr. 360  
    to IGST receivable   306
    to Cash/ Bank   54
    CGST payable        dr. 270  
    to CGST receivable   198
    to Cash/ Bank   72

 

RCM CGST A/C & RCM SGST A/C WILL HAVE DEBIT BALANCE ON ASSET SIDE. This will be Cash/ Bank Balance & it will be available to use against outward liability of next month.

CA HARSHIL SHETH | H A SHETH & ASSOCIATES | 9879831157 | CA.HARSHILSHETH@GMAIL.COM

FORM GSTR – 3B

Let’s find out how GSTR 3b of March for Mr. X will look like

Year 2018 MONTH MARCH

 

3.1    DETAILS OF OUTWARD SUPPLIES AND INWARD SUPPLIES LIABLE TO REVERSE CHARGE

NATURE OF SUPPLIES TOTAL TAXABLE
VALUE
INTEGRATED TAX CENTRALTAX STATE/UT TAX CESS
1 2 3 4 5 6
(A) OUTW ARD TAXABLE SUPPLIES (OTHER THAN ZERO RATED ,
NIL RATED AND EXEMPTED)
5000.00 360.00 270.00 270.00  
(B) OUTW ARDTAXABLE SUPPLIES (ZERO RATED)          
(C) OTHER OUTW ARD SUPPLIES (NIL RATED,EXEMPTED)          
(D) INW ARD SUPPLIES(LIABLE TO REVERSE CHARGE) 600.00   21.50 21.50  
(E) NON-GST OUTW ARD SUPPLIES          

 

4.   ELIGIBLE ITC

DETAILS INTEGRATED TAX CENTRAL TAX STATE/UT TAX CESS
1 2 3 4 5
(A) ITC AVAILABLE (WHETHER IN FULL OR PART)        
(1) IMPORT OF GOODS        
(2) IMPORT OF SERVICES        
(3) INW ARD SUPPLIES LIABLE TO REVERSE
CHARGE(OTHER THAN 1 & 2 ABOVE)
  21.50 21.50  
(4) INW ARD SUPPLIES FROM ISD        
(5) ALL OTHER ITC 306.00 198.00 198.00  
(B) ITC REVERSED        
(1) AS PER RULE 42 &43 OF CGST RULE        
(2) OTHERS        
(C) NET ITC AVAILABLE (A) – (B) 306.00 219.50 219.50  
(D) INELIGIBLE ITC        
(1) AS PER SECTION 17(5)        
(2) OTHERS        

 

12

Please check net payable is
IGST Rs. 54
CGST Rs. 72
SGST Rs. 72
And same accounting entries we have passed.

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