Accounting Ledgers and Entries in GST

Accounting Ledgers and Entries Under GST Regime

Accounting Ledgers and Entries in GST

Under the New GST accounting process, we will create the following new groups in tally or any other ERP.

1. “GST Output” Under Duties & taxes (Current Liability)
2. “GST Input” Under Duties & taxes (Current Liability)
3. “GST Cash Ledger” Under Balance from Revenue Authorities (Current Asset)
4. “GST Credit Ledger” Under Balance from Revenue Authorities (Current Asset)

 
Under the “GST Output” group, following new accounting ledgers will be created:

1. CGST Output
2. SGST Output
3. IGST Output
4. CGST RCM Output
5. SGST RCM Output
6. IGST RCM Output
 

Under the “GST Input” group, following new accounting ledgers will be created:

1. Input CGST
2. Input SGST
3. Input IGST
4. Input CGST RCM
5. Input SGST RCM
6. Input IGST RCM
7. Input CGST ISD HO
8. Input SGST ISD HO
9. Input IGST ISD HO
(Input Service Distributor (ISD) ledgers will be created only if Company has Head office and Branch Office and company has obtained GST ISD Registration Certificate and such ledgers will be created in head office books)

Under “GST Credit Ledger” group, following new accounting ledgers will be created:

1. CGST Credit Ledger
2. SGST Credit Ledger
3. IGST Credit Ledger

Under the “GST Cash” group, the following new accounting ledgers will be created:


1. CGST Cash Ledger
2. SGST Cash Ledger
3. IGST Cash Ledger

New Voucher Type 

“GST Cross Utilisation” can also be created to track the GST cross utilisation entries in the system or else you can pass such entries from Journal voucher.

Example:

1. Inter state Sale amounting Rs. 1,00,000 and IGST thereon Rs. 18,000.
2. Intra State Sale amounting Rs. 2,00,000 and CGST-SGST thereon Rs. 18,000 and Rs. 18,000 respectively.
3. Purchase Inter state amounting Rs. 1,50,000 and IGST thereon Rs. 27,000.
4. Purchase Intra State amounting Rs. 2,50,000 and CGST-SGST thereon Rs. 22,500 and Rs. 22,500 respectively.
5. Normal Business Expense invoice received Rs. 50,000 and IGST ITC thereon Rs. 9,000.
6. Normal Business Expense invoice received Rs. 75,000 and CGST-SGST thereon Rs. 6,750 & Rs. 6,750 respectively.
7. Motor vehicle service invoice Rs. 1,00,000 and IGST ITC thereon Rs. 18,000.
8. GTA Invoice received amounting Rs. 3,00,000.
9. Common service expense Invoice received Rs. 50,000 and IGST ISD thereon Rs. 9,000 (This service used by head office and branch office and combined expense invoice prepared by vendor in the name of head office)

 

Accounting Entries in GST for above: 

1. Party – Dr... 1,18,000
            To Sale…. 1,00,000
            To IGST Output …. 18,000
(Being inter state sales made and IGST liability booked)

2. Party – Dr... 2,36,000
            To Sale…. 2,00,000
            To CGST Output …. 18,000
            To SGST Output …. 18,000
(Being Intra state sales made and CGST and SGST Liability booked)


3. Purchase – Dr… 1,50,000
    Input IGST - Dr … 27,000
            To Vendor …. 1,77,000
(Being inter state purchases made and IGST ITC booked)


4. Purchase – Dr… 2,50,000
    Input CGST – Dr …. 22,500
    Input SGST – Dr …. 22,500
            To Vendor … 2,95,000
(Being Intra state purchases made and CGST SGST ITC booked)


5. Expense – Dr… 50,000
    Input IGST - Dr… 9,000
        To Vendor …. 59,000
(Being expense invoice booked and IGST ITC claimed)


6. Expense – Dr… 75,000
    Input CGST – Dr …. 6,750
    Input SGST – Dr …. 6,750
            To Vendor … 88,500
(Being Expense booked and CGST SGST ITC booked)


7. Motor Vehicle R&M expense – Dr… 1,00,000
    GST ITC Not available – Dr…. 18,000
            To Vendor … 1,18,000
(Being motor vehicle expense booked and ITC thereon transferred to credit not available)


8. GTA Expense – Dr… 3,00,000
    Input CGST RCM– Dr…. 27,000
    Input SGST RCM– Dr… 27,000
            To Vendor… 3,00,000
            To CGST RCM Output – Dr…. 27,000
            To SGST RCM Output – Dr… 27,000
(Being RCM expense booked and RCM GST liability booked and RCM input also booked)


9. Common Service expense – Dr… 50,000
    Input IGST ISD HO– Dr…. 9,000
            To Vendor … 59,000
(Being expense booked and IGST ISD ITC booked, and assumed 500 input pertains to head office and rest pertains to Branch office)

After the above entries, the following are the summary which will be automatically appeared in tally under the respective group

S. No.

CGST

SGST

IGST

 

 

 

 

From Entry No. 1

0

0

18,000

From Entry No. 2

18,000

18,000

0

From Entry No. 8

27,000

27,000

0

GST Output NCM

18,000

18,000

18,000

GST Output RCM

27,000

27,000

0

Total Output as shown in tally under GST Output group

45,000

45,000

18,000

 

 

 

 

From Entry No. 3

0

0

27,000

From Entry No. 4

22,500

22,500

0

From Entry No. 5

0

0

9,000

From Entry No. 6

6,750

6,750

0

From Entry No. 9

0

0

9,000

From Entry No. 8

27,000

27,000

0

GST Input  NCM

29,250

29,250

45,000

GST Input RCM

27,000

27,000

0

Total Input as shown in tally under GST Input group

56,250

56,250

45,000

 

ISD Entries in HO

Branch office a/c– Dr… 8,500
Input IGST – Dr… 500
        To Input IGST ISD HO… 9,000
(Being IGST ISD Input received from entry no. 9 and distributed between Branch office and Head office in the assumed ratio)

ISD Entries in Respective Branch Office

Input IGST – Dr… 8,500
        To Head Office A/c… 8,500
(Being IGST Input booked in Branch office books which was received from HO through ISD, then normal treatment will be happened to this input) 

           

At Month end, Cross utilization entries will be made under GST Cross utilisation Voucher type:

In the Books of HO

IGST Output– Dr… 18,000
CGST Output– Dr… 18,000
SGST Output- Dr… 500
            To Input IGST A/c… 36,500
(Being as per ranking, full IGST credit is utilised against liability of IGST and remaining for CGST, 

36,500 come from above table i.e. 45000 total IGST Input minus 9,000 Bifurcated separately add 500 portion of head office input in total ISD Input)


Note: Input CGST can’t be utilised in this case as no CGST liability and IGST liability are outstanding for adjustment

SGST Output– Dr… 17,500
            To Input SGST… 17,500
(Being as per ranking, SGST credit is utilised against liability of SGST)

 

After above cross utilisation entries, following are the summary of GST credits available under NCM at month end which will be transferred to GST credit ledger

S. No.

CGST

SGST

IGST


NCM GST Output

18,000

18,000

18,000

Less: ITC Adjusted under cross utilisation

18,000

(IGST ITC used)

500 (IGST ITC used) + 17,500 (SGST ITC used)

18,000

(IGST ITC used)

Net Output to pay with cash

0

0

0

 

 

 

 

S. No.

CGST

SGST

IGST

 

 

 

 

NCM GST Input

29,250

29,250

36,500

Less: ITC Utilised

0

(Not used as no IGST & CGST Liability are pending)

17,500

(Used in SGST Liability)

36,500

(Utilised in IGST, CGST and then SGST Liability)

Net ITC Available

29,250

11,750

0



Now balance ITC available will be transferred to GST Credit ledger in our books and the same will be matched with portal credit ledger.

 

CGST Credit Ledger– Dr… 29,250
SGST Credit Ledger– Dr… 11,750
        To Input CGST… 29,250
        To Input SGST… 11,750
(Being balance in CGST and Input SGST will be transferred to CGST and SGST credit ledger and at month-end Input CGST and Input SGST for a particular month will be zero as a balance of such unused ITC will be transferred to Credit ledger)

Note: All GST Input and Output ledger in our books will be Zero after cross utilisation entries in books and Transfer entries of unutilised ITC into credit ledger.

Further, Credit ledger in books will be matched with portal Credit ledger.

RCM Case (GTA service availed):


CGST Cash Ledger- Dr... 27,000
SGST Cash Ledger– Dr… 27,000
            To HDFC Bank … 54,000
(Being Cash deposited in GST cash ledger from our bank for payment of RCM liability)


CGST RCM Output– Dr… 27,000
SGST RCM Output– Dr… 27,000
            To CGST Cash Ledger... 27,000
            To SGST Cash Ledger... 27,000
(Being RCM liability paid with GST cash amount)


CGST Cash Ledger– Dr… 27,000
SGST Cash Ledger– Dr… 27,000
            To Input CGST... 27,000
            To Input SGST... 27,000
(Being RCM credit added to GST cash ledger)


Note: after above, Cash ledger in books will be matched with portal cash ledger



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