-Hallo friends, Accounting Methods, in the article you read this time with the title Journal Entries for GST, we have prepared this article well for you to read and retrieve the information therein.
Hopefully the content of article posts Artikel, which we write this you can understand. Alright, happy reading.
Title : Journal Entries for GST
link : Journal Entries for GST
Journal Entries for GST
Journal Entries for GSTJournal Entries for GST - Hello Friend Accounting Methods, In the article you read this time with the title Journal Entries for GST, We have prepared this article for you to read and retrieve information therein. Hopefully the contents of postings Article GST, Article journal entries, Article tax, We write this you can understand. Alright, good read.
Title : Journal Entries for GST
link : Journal Entries for GST
Journal Entries for GST
As it is confirmed, GST will apply all most all India from 1st April 2016. You have to record it in your business books. All the journal entries of excise duties, VAT, Service Tax and other Indirect tax will stop. So, it is good time to learn the journal entries for GST and be prepare for passing it from next financial year.
From next year, Goods and services will be same from tax point of view. Both from start from its production point and then, upto retailer, it will be taxable. On the purchase of goods or services, you have to pay the GST input. and on the sales of goods or services, you have to pay GST Output. If your GST input will more than GST Output, you will get refund from central GST or State GST Department. If GST output will more than GST input, excess will be transferred either central or state GST Department.
For recording, you have to pass following journal entries of VAT.
From next year, Goods and services will be same from tax point of view. Both from start from its production point and then, upto retailer, it will be taxable. On the purchase of goods or services, you have to pay the GST input. and on the sales of goods or services, you have to pay GST Output. If your GST input will more than GST Output, you will get refund from central GST or State GST Department. If GST output will more than GST input, excess will be transferred either central or state GST Department.
For recording, you have to pass following journal entries of VAT.
1. When Goods or Services are bought and you have to pay both purchase value and Central GST input and State GST input or paid both, at that time, following journal entry will be passed.
Purchase Account or Expenses for Service Purchase Dr. (Value of Purchase) 100
Central GST Input Account Dr. ( GST on Purchase { Central Govt.}) 10
State GST Input Account Dr. ( GST on Purchase { State Govt. }) 10
Cash or Bank or Name of Creditor Account Cr. (Value of Purchase + Central GST input + State GST input) 120
Reason of this Journal Entry :
We have bought the goods or Service, it increases our current asset. Increase of asset will always debit. Both central GST and state GST input is also our current Asset or Negative Current Liability because We paid this to our creditor or supplier (for paying govt.). ( One of great benefit in GST, it will be fixed rate both input or output and in all state, so, credit can easily be easily given by Central or state govt. on every excess of input over output.
If we are final consumer, we need not show the GST Input account, its cost will be included in purchase account. So, purchase expense will increase and debit in our journal entry.
2. When Goods or Services are Sold and you have to receive both Sale Value and GST Output or received both, at that time, following journal entry will be passed
Cash or Bank or Name of Customer Account Dr. Rs. 220 (Value of Purchase + Central GST output + State GST Output)
Central GST Credit or Refund from Central Govt. Dr. 10
State GST Credit or Refund from State Govt. Dr. Rs. 10
Sale Account Cr. Rs. 200 (Value of Sale) ( Purchase of raw material Rs.100 including GST + cost of processing Rs. 100)
Central GST Output Account Cr. (GST on Sale) Rs. 20
State GST Output Account Cr. (GST on Sale) Rs. 20
Reason of this Journal Entry :
When we sell any goods we receive cash or bank. If we sell the goods on credit, we have to get money from our customer. So, Receivable money from our customer is just like given loan. So, it is also increase of our current asset. So, in case of cash sale, we will debit cash or bank account. In case of credit sale, we will debit to debtor or customer account. We will credit to sale account because in sale, we transfer the ownership of goods to other party. So, it is decrease of our current asset. So, sale account will be credit. All the amount of GST which we will receive on sale will not go to our pocket. It is the money of central and state Govt. Because Govt. can not get the money of tax from each part, so, we have obtained the tax on the behalf of Govt. So, both central GST output and State GST output it is increase in our current liability. So, this account will credit. We have already paid central GST input and State GST input, so, it will be receive as our income. Receivable income will be debit because it is our current asset.
I have tried to teach it through image. Hoe, it will be useful for you.
Thus Article Journal Entries for GST
that's all the article Journal Entries for GST this time, hopefully can give benefits to all of you. alright, see you in posting other articles.
You now read the article Journal Entries for GST with link address http://accountingmethode.blogspot.com/2016/10/journal-entries-for-gst.html
[ad_2]
Source link : Journal Entries for GST