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Accounting Entries under GST for different situations
On 8th August 2017
ICAI Webcast < http://estv.in/icai/08082017/>
1
Accounting Entries under GST for different
situations
CA.VENUGOPAL GELLA
On 8th August 2017
Scope
• Introduction.
• Configuration.
• List of ledgers to be created.
• Outward Supply.
• Inward Supply.
• Entry to be passed after filing GST Returns i.e. Closing Entries.
• Transition entries to be passed
Introduction
• Technology or software is the backbone of GST
• Success or failure of implementation of GST isheavily dependent on technology
• GST will create a paradigm shift in how SmallBusiness “run their day to day business”
• Changes in the Accounting entries that one hasfollow to comply with GST Law.
Configurations of
Accounting Systems
Master Setup
• Inventory Item configuration.
• Item Name
• HSN Code/SAC code
• Tax Rate
• Unit of measurement
Master Setup...
• Sales Account
• Percentage wise
• Customer / Vendors Accounts (Multiple GSTIN)
• Name
• Address
• State
• GSTN
• PAN
• Purchases Accounts (Rate wise)
• Tax ledger (credit, liability, cash for CGST/SGST/IGST)
Master Setup…
• Transaction Time
• Select
• Revenue ledger
• Party ledger
• Item
• Enter Amount
• Tax Type ,
• Can We Make Automation?
• Place of Supply (important if it is different fromplace of recipient)
Master Setup...
• Expenses Accounting, Capturing Input tax
• Advance ledgers – Receipt voucher
• Refund vouchers
• Unregistered purchases - Invoice
• Payment vouchers
• Outstanding more than 180 days
• Credit Note & Debit Note
“Invoicing Under”
• Composition supplier?
• Warranty / Free Samples?
• Tax Invoice v/s. Bill of Supply?
• Composite supply/Mixed Supply?
• Buy one get one offers?
• Works contractor
• on immovable?
• on movable/AMC?
• Transportation charges GST Rate?
“Invoicing Under” :“BILL To , SHIP TO” Case
• Supply state – Maharashtra
• Bill to state – Maharashtra
• Ship to state—Tamil Nadu
• In the above example, Supply state & “Bill To” state are only relevant.
• If both states are same CGST & SGST shall be levied otherwise IGST shall be levied.
List of ledgers to be created - BSCurrent Assets / Duties & Liabilities Duties and taxes (Current liabilities)
Input CGST A/c 9% Output CGST A/c*
Input SGST A/c 9% Output SGST A/c*
Input IGST A/c 18% Output IGST A/c*
Provisional ITC CGST Ledger A/c GST on Advance
Provisional ITC SGST Ledger A/c
Provisional ITC IGST Ledger A/c Current Liability
Electronic Credit CGST Ledger A/c Electronic Liability Ledger CGST A/c
Electronic Credit SGST Ledger A/c Electronic Liability Ledger SGST A/c
Electronic Credit IGST Ledger A/c Electronic Liability Ledger IGST A/c
Electronic Cash CGST Ledger A/c
Electronic Cash SGST Ledger A/c Sundry Creditors (Group in tally)
Electronic Cash IGST Ledger A/c Registered
Cash/ Bank A/c Unregistered
Composition(* For each % you can create separately)
List of ledgers to be created - PnL
Outward Supply - Sales A/c Inward Supply - Purchases A/c
Local B2B sales A/c Purchases A/c
Local B2C sales A/c Exempt purchases A/c
Interstate B2B sales A/c Expense A/c
Interstate B2C sales A/c Inward Supply - Purchases A/c
Export Sales Purchases A/c
Exempt Sales {B2B / B2C + Local / Inter State}
RCM Sales {B2B / B2C + Local / Inter State}
eCom Sales {B2B / B2C + Local / Inter State}
Outward Supply
Outward Supply- Taxable SuppliesNature Dr/Cr Ledger a/c Amount Amount
Reporting
Table
B2B Dr
Cr
Cr
Cr
Debtors A/c
To Local B2B sales A/c
To 9% Output CGST A/c
To 9% Output SGST A/c
1,41,600
1,20,000
10,800
10,800
GSTR1>>
Table 4A
B2C S
Local
Dr
Cr
Cr
Cr
Debtors A/c
To Local B2C sales A/c
To 9% Output CGST A/c
To 9% Output SGST A/c
1,41,600
1,20,000
10,800
10,800
GSTR1>>
Table7A(1)
B2C S
Interstate
Dr
Cr
Cr
Debtors A/c
To Interstate B2C sales A/c
To 18% Output IGST A/c
1,41,600
1,20,000
21,600
GSTR1>>
Table 7B(1)
B2C L (>2.5
Lacs)
Dr
Cr
Cr
Debtors A/c
To Interstate B2C sales A/c
To 18% Output IGST A/c
2,95,000
2,50,000
45,000
GSTR 1>>
Table 5A
Exempt Supplies
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Outward Supply – Exempt
Inter-state Sale
– B2B
Dr
Cr
Debtors A/c
To Exempt B2B sales-Interstate A/c
1,20,000
1,20,000
GSTR-1 >>
Table 8A
Local Sale – B2B Dr
Cr
Debtors A/c
To Exempt B2B sales-Local A/c
1,20,000
1,20,000
GSTR-1 >>
Table 8B
Inter-state Sale
– B2C
Dr
Cr
Debtors A/c
To Exempt B2C sales-Interstate A/c
{No Transaction Limit}
3,00,000
3,00,000
GSTR-1 >>
Table 8C
Local Sale – B2C Dr
Cr
Debtors A/c
To Exempt B2C sales-Local A/c
1,20,000
1,20,000
GSTR-1 >>
Table 8D
RCM Supplies Sec 9(3)
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Outward Supply - Sales attracting RCM – Sec 9(3)
Local Sale – B2B Dr
Cr
Debtors A/c
To Local RCM B2B sales A/c
1,20,000
1,20,000
GSTR-1 >>
Table 4B
Local Sale – B2C Dr
Cr
Cr
Cr
Debtors A/c
To Local B2C sales A/c
To 9% Output CGST A/c
To 9% Output SGST A/c
1,41,600
1,20,000
10,800
10,800
GSTR1 >>
Table 7A(1)
Inter-state Sale –
B2B
Dr
Cr
Debtors A/c
To Inter State RCM B2B sales
A/c
1,20,000
1,20,000
GSTR-1 >>
Table 4B
Inter-state Sale –
B2C
Dr
Cr
Cr
Debtors A/c
To Interstate B2C sales A/c
To 18% Output IGSTA/c
1,41,600
1,20,000
21,600
GSTR1 >>
Table 7B(1)
Outward Supply-Supplies through E-commerce Operator
Nature Dr/Cr Ledger a/c Amount AmountReporting
Table
Local Sale –
B2B
Dr
Cr
Cr
Cr
Debtors A/c
To Local e-COM B2B sales A/c
To 9% Output CGST A/c
To 9% Output SGST A/c
1,41,600
1,20,000
10,800
10,800
GSTR-1 >>
Table 4C
Local Sale –
B2C S
Dr
Cr
Cr
Cr
Debtors A/c
To Local e-COM B2C sales A/c
To 9% Output CGST A/c
To 9% Output SGST A/c
1,41,600
1,20,000
10,800
10,800
GSTR-1 >>
Table 7A (1)
& 7A (2)
Inter State
Sale – B2C S
Dr
Cr
Cr
Debtors A/c
To Inter State e-COM B2C sales A/c
To 18% IGST A/c
1,18,000
1,00,000
18,000
GSTR-1 >>
Table 7B (1)
& 7B (2)
Inter State
Sale – B2C L
Dr
Cr
Cr
Debtors A/c
To Inter State e-COM B2C sales A/c
To 18% Output IGST A/c
2,95,000
2,50,000
45,000
GSTR-1 >>
Table 5B
Outward Supply- Export & SEZ
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Outward Supply - For Exports
With payment
of duty
Dr
Dr
Cr
Cr
Debtors A/c
IGST Refund Due A/c.
To Sales (export) A/c
To 18% Output IGST A/c
2,00,000
36,000
2,00,000
36,000
GSTR 1 >>
Table 6A
With payment of
Duty
Without
payment of
duty
Dr
Cr
Debtors A/c
To Sales (export) A/c
1,25,000
1,25,000
GSTR 1 >>
Table 6A
Under LUT or Bond
Outward Supply - For SEZ
With payment
of duty
Dr
Dr
Cr
Cr
Debtors A/c
IGST Refund Due A/c.
To Sales (export) A/c
To 18% Output IGST A/c
2,00,000
36,000
2,00,000
36,000
GSTR 1 >>
Table 6B
With payment of
Duty
Without
payment of
duty
Dr
Cr
Debtors A/c
To Sales (export) A/c
1,25,000
1,25,000
GSTR 1 >>
Table 6B
Under LUT or Bond
Advances Received from CustomerNature Dr/Cr Journal Entry Amount Amount Reporting Table
Advance
received
Dr
Cr
Bank
To Advance Received
11800
11800
GSTR-1>>Table-11A (1)
Invoice Same
MonthAdvances Received and Invoice Raised in the same month, the Tax would be levied on
Supply no separate reporting for Advances is required.
Invoice not
raised in
same Month
Dr
Cr
Cr
GST on Advances
To 9% Output CGST
To 9% Output SGST
1800
900
900
GSTR-1>>Table-11A (1)
Invoice raised
Subsequently
Dr
Cr
18% IGST Output A
To GST on Advances
1800
1800
GSTR-1>>Table-11B (2)
Subsequent adjustment for advances
Nature Dr/Cr Journal Entry Amount Amount Reporting Table
B2B Dr
Cr
Cr
Cr
Debtors A/c
To Local B2B sales A/c
To 9% Output CGST A/c
To 9% Output SGST A/c
1,41,600
1,20,000
10,800
10,800
GSTR1 >>
Table 4A
Receipt Dr
Cr
Bank
To Debtors A/c
1,29,800
1,29,800 -
Advance
Adjusted
Dr
Cr
Advance Received
To Debtors A/c
11,800
11,800
GSTR-1 >>
Table-11B (1)
Dr
Dr
Cr
9% Output CGST A/c
9% Output SGST A/c
To GST on Advances
900
900
1800
GSTR-1 >>
Table 11B (1)
Credit Note / Debit NoteNature Dr/Cr Journal Entry Amount Amount Reporting Table
Credit Note
B2B
Dr
Dr
Dr
Cr
Local B2B sales A/c
9% Output CGST A/c
9% Output SGST A/c
To Debtors A/c
1,20,000
10,800
10,800
1,41,600
GSTR 1 >>
Table 9B
Credit Note
B2C L
Dr
Dr
Dr
Cr
Local B2C sales A/c
9% Output CGST A/c
9% Output SGST A/c
To Debtors A/c
1,20,000
10,800
10,800
1,41,600
GSTR 1 >>
Table 9B
Credit Note
B2C S
Dr
Dr
Dr
Cr
Local B2C sales A/c
9% Output CGST A/c
9% Output SGST A/c
To Debtors A/c
1,20,000
10,800
10,800
1,41,600
GSTR 1 >>
Table 10
Adjustments to
Past sales
Debit Note Dr
Cr
Cr
Cr
Debtors A/c
To Local B2B sales A/c
To 9% Output CGST A/c
To 9% Output SGST A/c
1,41,600
1,20,000
10,800
10,800
GSTR 1 >>
Table 9B
Inward Supply
Inward Supply- Registered Dealer
Nature Dr /Cr Ledger a/c Amount Amount Reporting Table
Purchase –
B2B
Dr
Dr
Dr
Cr
Purchases/Exepnses-B2B A/c
Input CGST A/c
Input SGST A/c
To Creditor A/c
1,00,000
14,000
14,000
1,28,000
GSTR-2>>
Table-3
Optional : Allow the accountant to take full Input tax credit regardless of T1,T2,T3;
this can be handled at the time of file GSTR -2
Inward Supply- URD
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Purchases –
RCM 9(3)
Dr
Dr
Dr
Cr
Cr
Cr
Purchases/Expenses -RCM
Input CGST A/c
Input SGST A/c
To Creditor A/c
To 2.5% Output CGST A/c
To 2.5% Output SGST A/c
50,000
1,250
1,250
50,000
1,250
1,250
GSTR-2>>
Table-4A
Purchases-
URD
C2B – 9(4)
Dr
Dr
Dr
Cr
Cr
Cr
Purchases/Expenses -URD
Input CGST A/c
Input SGST A/c
To Creditor A/c
To 6% Output CGST A/c
To 6% Output SGST A/c
50,000
3,000
3,000
50,000
3,000
3,000
GSTR-2>>
Table-4B
Inward Supply- URD Contd….Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
RCM Liability end of
the day
As per Notification
No.8/2017-Central
Tax (Rate), purchases
up to 5k is exempted
every day.
Dr
Dr
Cr
Cr
Input CGST A/c
Input SGST A/c
To 6% Output CGST A/c
To 6% Output SGST A/c
{Purchases are normally booked
without payment of taxes. Day
end the taxes are calculated and
liability is created}
3,000
3,000
3,000
3,000
GSTR-2
Table-4B
Import of Services
Dr
Dr
Cr
Cr
Expenses
Input IGST A/c
To Creditor A/c
To 12% IGST A/c
50,000
6,000 50,000
6,000
GSTR-2
Table-4C
Inward Supply- Import
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Import of
Goods
Dr
Dr
Cr
Cr
Purchases
Input IGST
To Creditor A/c
To 12% IGST A/c
{ Track Bill of Entry }
50,000
6,000
50,000
6,000
GSTR-2
Table-5A& 5B
Inward Supply- (Composition/Nil/ Nontaxable)
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Purchase from
Composition Dealer
Dr
Cr
Purchases/Expenses a/c
To Creditors a/c
1,000
1,000
GSTR-2>>
Table-7 (2)
Exempted / NIL /
NON-Taxable
Purchase
Dr
Cr
Purchases/Expenses a/c
To Creditors a/c
1,000
1,000
GSTR-2>>
Table-7 (3/4/5)
Inward Supply- Advances paid to Vendors
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Advances Paid to
Registered Vendor Regular Payment entry
Advance Paid to
Unregistered
Vendor
Dr
Cr
Creditor a/c
To Bank
1,00,000
1,00,000
GSTR-2>>
Table-10A (1)
Payment Voucher Dr
Dr
Cr
Cr
Input CGST-RCM
Input SGST- RCM
To 2.5% Output CGST A/c
To 2.5% Output SGST A/c
2,500
2,500
2,500
2,500
GSTR-2>>
Table-10A (1)
GSTR – 3 5A (1)
URD Purchase
against advance
Dr
Cr
Purchases a/c
To Creditor
1,00,000
1,00,000
GSTR-2>>
Table-4B
Inward Supply- ISD related
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
ISD Purchase of
SERVICES
Dr
Dr
Dr
Cr
Expenses-B2B A/c
Input CGST A/c
Input SGST A/c
To Creditor A/c
1,00,000
14,000
14,000
1,28,000
GSTR-6>>
Table-3
(of ISD)
ISD Purchase of
MATERIALS
Dr
Cr
Expenses-B2B A/c
To Creditor A/c
(No Credit can be availed)
1,28,000
1,28,000
GSTR-6>>
Table-3
(of ISD)
ISD Credit Transfer
(Head Office) Dr
Cr
Cr
Branch Office A/c
To Input CGST A/c
To Input SGST A/c
28,000
14,000
14,000
GSTR-2>>
Table-8A
(of Branch)
OR
GSTR-6>>
Table-5
(of ISD)
Journal Entries after filing GST Returns
Upon filing of GSTR -1
Nature Dr/Cr Ledger a/c Amount AmountReporting
Table
Transfer to
Liability
Ledger
Dr
Dr
Dr
Cr
Cr
Cr
9% Output CGST A/c
9% Output SGST A/c
18% Output IGST A/c
To Electronic Liability Ledger CGST A/c
To Electronic Liability Ledger SGST A/c
To Electronic Liability Ledger IGST A/c
21,600
21,600
54,000
21,600
21,600
54,000
GSTR-1Adjustment
entry
Upon filing of GSTR -2Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Transfer to
Credit
Ledger
Dr
Dr
Dr
Dr
Cr
Cr
Cr
Electronic Credit CGST Ledger A/c
Electronic Credit SGST Ledger A/c
Electronic Credit IGST Ledger A/c
Expenses A/c { T1,T2,T3}
To Input CGST A/c
To Input SGST A/c
To Input IGST A/c
9,450
9,450
7,500
2,000
9,450
9,450
9,500
GSTR 2
Adjustment
entry
Basis
mismatch
Report
Dr
Dr
Dr
Cr
Cr
Cr
Provisional ITC CGST A/c
Provisional ITC SCGT A/c
Provisional ITC IGST A/c
To Electronic Credit CGST Ledger A/c
To Electronic Credit SGST Ledger A/c
To Electronic Credit IGST Ledger A/c
900
900
900
900
900
900
GSTR 2
Adjustment
entry
Inward Supply-Upon filing of GSTR -2 Contd…
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Not attended
by supplier
Dr
Cr
Purchase/Expense a/c
To Provisional ITC XGST* A/c
900
900
Mismatch Report
Adjustment
Entry
Rectified by
supplier
Dr
Cr
Electronic Credit XGST Ledger A/c
To Provisional ITC XGST A/c
900
900
Mismatch Report
Adjustment
Entry
* XGST here shall mean CGST or SGST or IGST as applicable
Inward Supply-On Payment of Taxes
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Transfer amount
to cash ledger
Dr
Dr
Dr
Cr
Electronic Cash CGST Ledger A/c
Electronic Cash SGST Ledger A/c
Electronic Cash IGST Ledger A/c
To Bank A/c
1,000
1,000
1,000
3,000Not Applicable
TDS / TCS Dr
Cr
Electronic Cash Ledger
To Govt / eCom Operator
Auto
populated Not Applicable
Inward Supply-Upon filing of GSTR -3
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Transfer to
Credit Ledger
Dr
Dr
Dr
Cr
Cr
Cr
Cr
Cr
Cr
Electronic Liability Ledger CGST A/c
Electronic Liability Ledger SGST A/c
Electronic Liability Ledger IGST A/c
To Electronic Credit CGST Ledger A/c
To Electronic Credit SGST Ledger A/c
To Electronic Credit IGST Ledger A/c
To Electronic Cash CGST Ledger A/c
To Electronic Cash SGST Ledger A/c
To Electronic Cash IGST Ledger A/c
21,600
21,600
55,800
13,950
13,950
7,500
6,750
26,850
30,000
Adjustment
entry
Accounting for Transitional
Provisions & Data need to have
for filling TRAN-1 & TRAN -2
Transition Entries
Migration Entry 140(1)
38
Particulars Rs
Cenvat Credit in last Excise Returns 150
Input Tax Credit available in last VATreturns
250
Tax incidence of Non submitting ofstatutory forms (C form to be submitted forsale value of Rs.5,000/- )(5.5%-2%)
(175)
PRE GST POST GST
Particulars Rs
Input Credit available to CGST CreditLedger
150
Input Credit available to SGST CreditLedger
75(250-175)
Electronic Credit CGST Ledger Dr 150Electronic Credit SGST Ledger Dr 75
To CENVAT Credit A/c 150To Input Vat A/c 75
Migration Entry 140(2)
Particulars Rs
Cenvat Credit available for Capital Goods 250
Input Tax Credit availed so far 125
Balance credit not availed 125
PRE GST
Electronic Credit CGST Ledger Dr 125
To Input CENVAT A/c 125
Trader 140(3) Deemed Credit
Conditions:
• Used or intended to be used for taxable supply
• Eligible for credit under GST
• Goods should be excisable and not exempt or nil rate
• Pass on all the benefit to customer
• Documents evidencing procurement is available
Entry to be passed for sale of such goodsParty Account A/c Dr XXXTransitional Discount A/c Dr XX
To Sales @ 12% A/c XXXTo CGST Liability ledger A/c XXTo SGST Liability ledger A/c XX
Entry to be passed for taking creditCGST Credit Liability A/c XX
To Transitional discount A/c XX
Trader 140(3) Deemed Credit
Supply Value GST Rate Type of tax CGST paidIGST Paid
Deemed Credit rate
Deemed credit value
% on sale value
10000 5% CGST 250 0 40% of CGST 100 1.00%
10000 12% CGST 600 0 40% of CGST 240 2.40%
10000 18% CGST 900 0 60% of CGST 540 5.40%
10000 28% CGST 1400 0 60% of CGST 840 8.40%
10000 5% IGST 0 500 20% of IGST 100 1.00%
10000 12% IGST 0 1200 20% of IGST 240 2.40%
10000 18% IGST 0 1800 30% of IGST 540 5.40%
10000 28% IGST 0 2800 30% of IGST 840 8.40%
Example for above
Particulars Amount
Base Price 500
Add: CGST at 6 % 30
Add: SGST at 6% 30
Total Commercial Value 560
Less: Discount Eligible Credit at 40% of CGST i.e., Rs.30 (12)
Selling Price 548
On Sale
Party Account A/c Dr 548Transitional Discount A/c Dr 12
To Sales @ 12% A/c 500To CGST Liability ledger A/c 30To SGST Liability ledger A/c 30
Up on TRAN – 2
Electronic Credit CGST Ledger A/c 12To Transitional discount A/c 12
