Purchase Entry with GST

                                        Purchase Entry of GST 

 

Tax Under GST (Goods and Service Tax)

• Input CGST
• Input SGST
• Input IGST
• Input IGST

Accounting entries under GST

How to pass accounting entries in GST

GST entries in tally can be understand through the example.

Example 1: Intra-state

Question:- Mr. Ram purchased goods Rs. 60000/- locally. He purchased machine for Rs. 12,000/-Suppose the rate of CGST @8% and SGST@8% in the particular goods.

The entries will be-

Now firstly we learn purchase Entry. Then the entry of sale.

Purchase Entry:-

1.    Ram purchase Goods Rs. 60000/-    

  The following entry we will do in Journal voucher i.e- F7

1	Purchase A/c………………….  Dr.	60000
	Input CGST A/c……………….. Dr.	4800
	Input SGST A/c………………...Dr.	4800
	To Mr. Ram A/c…………………………..Cr.		69600

2	Machine A/c……….……………………. Dr.	12000
	Input CGST A/c…………………………. Dr.	960
	Input SGST A/c………………...................Dr	960
	ABC and comp…………………..………………Cr.		13920

 Input CGST- Central Goods and service tax. Input CGST we create this ledger because we paid the tax to the dealer and now it is his responsibility to paid tax to the central government.

Input SGST:- State Goods and service tax. It is the liability to paid tax to the state government.

Purchase Goods from another state:-

Example- A company which is situated in delhi Purchase Furniture form Gujrat, Rs. 120000/- From the comp. XY ltd. The rate of IGST will be 18%.

2	Furniture A/c……….……………………. Dr.	120000
	Input CGST A/c…………………………. Dr.	21600
	XY ltd.		141600

Input IGST:- Integrated Goods and Services Tax. The total tax go to the Gujrat Government because we are purchase goods from gujrat and our company situated in delhi. This Integrated goods purchase.

Sundry Creditors:- who is the given to utility to company or person are called sundry creditors. In other words we can say creditor are those person or the company to whom we purchase goods and service.

Purchase Entry of GST in tally

Create the following ledger in tally

1.    Input CGST A/c         (Duties and taxes) 2.    Input IGST  A/c          (Duties and taxes) 3.    Ram A/c                     (Sundry creditor)  4.    Machine A/c              (Fixed Assets) 5.    Abc and comp. A/c  (sundry Creditor) 6.    Warehouse charge  (indirect Exp) 7.    XY ltd                          (Sundry creditor)

Gateway of tally> Accounting info>Ledger>Create> Input CGST> under (Duties & Taxes)> Type of Duty> Select GST> Tax Type> Select Central tax > then press Alt+A (the ledger will save automatically)

Gateway of tally> Accounting info>Ledger>Create> Input SGST> under (Duties & Taxes)> Type of Duty> Select GST> Tax Type> Select State tax> then press Ctrl+A (the ledger will save automatically)

Gateway of tally> Accounting info>Ledger>Create>Mr. Ram> under(sundry creditors)> fill all the required detail, PAN no, GST no etc

Gateway of tally>Accounting info>Ledger>Create>Machine> under (Fixed Assets) > then press Ctrl+A

Gateway of tally> Accounting info>Ledger>Create>Abc& comp.> under (sundry creditors)

Gateway of tally>Accounting info>Ledger>Create>Purchase> under(Purchase A/c) > then press Ctrl+A

Gateway of tally> Accounting info>Ledger>Create>XY ltd.> under (sundry creditors)

Gateway of tally> Accounting Voucher>F7

Gateway of tally> Accounting Voucher>F5

The Jouranl and payment voucher of Machine Account will be pass same as the purchase Entry.
Total input CGST   =4800+960=5760.

Total Output CGST=4800+960=5760.

Total input IGST     =21600