Accounting Treatment of GST in India -Part 2

Accounting Treatment of GST in India -Part 2

-Hallo friends, Accounting Methods, in the article you read this time with the title Accounting Treatment of GST in India -Part 2, we have prepared this article well for you to read and retrieve the information therein.

Hopefully the content of article posts accounting, which we write this you can understand. Alright, happy reading.

Title : Accounting Treatment of GST in India -Part 2
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Accounting Treatment of GST in India -Part 2

Accounting Treatment of GST in India -Part 2
Accounting Treatment of GST in India -Part 2 - Hello Friend Accounting Methods, In the article you read this time with the title Accounting Treatment of GST in India -Part 2, We have prepared this article for you to read and retrieve information therein. Hopefully the contents of postings Article accounting, Article GST, We write this you can understand. Alright, good read.

Title : Accounting Treatment of GST in India -Part 2
link : Accounting Treatment of GST in India -Part 2

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Accounting Treatment of GST in India -Part 2



Welcome "Accounting Treatment of GST  in India -Part 2". In this part, we will treat GST when outward or inward supply is out of same state. This is called inter-State sale. So, whole GST will go to Central govt. under IGST.

Example

Mr. A  purchased goods Rs. 2,50,000 from outside the State
He sold Rs.50,000 outside the state
He paid internet bill  Rs. 2,000

Assuming CGST @9% and SGST@9%

When purchase is out of state 

1 Purchase A/c Dr. 2,50,000
Input IGST A/c Dr. 45000
       
 Creditors A/c  Cr. 295000

When Sale is out of state 


2. Debtors A/c Dr. 59000
              Sales A/c Cr. 50000
         Output IGST A/c Cr. 9000

When Local Service Received 

3. Internet Expenses A/c  Dr. 2000
Input CGST A/c  Dr. 180
Input SGST A/c  Dr. 180
             Bank A/c Cr. 2360


Total CGST input =180=1,360
Total CGST output =nil
Total SGST input =180=180
Total SGST output =nil
Total IGST input =45000        
Total IGST output =9000

Output CGST Nil
Input credit = 180
input credit IGST for CGST 4500
=======================
Amount Receivable Rs. 4680
======================

Net Balance Received from Tax Department

Electronic Cash Ledger account Dr. 40500
Output IGST Account Dr. 4500
Input IGST Account Cr. 45000

Electronic Cash Ledger account Dr. 4680
Output CGST account Dr. nil
Input CGST Account Cr.4680




Thus Article Accounting Treatment of GST in India -Part 2

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