Accounting Ledgers and Entries Under GST Regime
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 CGST2. 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 Ledger2. 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... 1,18,000To 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… 8,500Input 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… 8,500To 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… 18,000CGST 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,
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.
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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