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 | ||||||||
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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