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

On 8th August 2017

CA.VENUGOPAL GELLA
 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 is
heavily dependent on technology
• GST will create a paradigm shift in how Small
Business “run their day to day business”
• Changes in the Accounting entries that one has
follow 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 from
place 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 - BS
Current 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 Supplies
Reporting
Nature Dr/Cr Ledger a/c Amount Amount
Table
B2B Dr Debtors A/c 1,41,600
Cr To Local B2B sales A/c 1,20,000 GSTR1>>
Cr To 9% Output CGST A/c 10,800 Table 4A
Cr To 9% Output SGST A/c 10,800
B2C S Dr Debtors A/c 1,41,600
Local Cr To Local B2C sales A/c 1,20,000 GSTR1>>
Cr To 9% Output CGST A/c 10,800 Table7A(1)
Cr To 9% Output SGST A/c 10,800
B2C S Dr Debtors A/c 1,41,600
Interstate Cr To Interstate B2C sales A/c 1,20,000 GSTR1>>
Cr To 18% Output IGST A/c 21,600 Table 7B(1)

B2C L (>2.5 Dr Debtors A/c 2,95,000

Lacs) Cr To Interstate B2C sales A/c 2,50,000 GSTR 1>>
Cr To 18% Output IGST A/c 45,000 Table 5A
 Exempt Supplies
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table

Outward Supply – Exempt

Inter-state Sale Dr Debtors A/c 1,20,000 GSTR-1 >>
– B2B Cr To Exempt B2B sales-Interstate A/c 1,20,000 Table 8A

Local Sale – B2B Dr Debtors A/c 1,20,000 GSTR-1 >>

Cr To Exempt B2B sales-Local A/c 1,20,000 Table 8B

Inter-state Sale Dr Debtors A/c 3,00,000 GSTR-1 >>

– B2C Cr To Exempt B2C sales-Interstate A/c 3,00,000 Table 8C
{No Transaction Limit}

Local Sale – B2C Dr Debtors A/c 1,20,000 GSTR-1 >>

Cr To Exempt B2C sales-Local A/c 1,20,000 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 Debtors A/c 1,20,000 GSTR-1 >>
Cr To Local RCM B2B sales A/c 1,20,000 Table 4B

Local Sale – B2C Dr Debtors A/c 1,41,600

Cr To Local B2C sales A/c 1,20,000 GSTR1 >>
Cr To 9% Output CGST A/c 10,800 Table 7A(1)
Cr To 9% Output SGST A/c 10,800

Inter-state Sale – Dr Debtors A/c 1,20,000 GSTR-1 >>

B2B Cr To Inter State RCM B2B sales 1,20,000 Table 4B
A/c

Inter-state Sale – Dr Debtors A/c 1,41,600 GSTR1 >>

B2C Cr To Interstate B2C sales A/c 1,20,000 Table 7B(1)
Cr To 18% Output IGSTA/c 21,600
 Outward Supply-Supplies through E-commerce
Operator
Reporting
Nature Dr/Cr Ledger a/c Amount Amount
Table
Local Sale – Dr Debtors A/c 1,41,600
B2B Cr To Local e-COM B2B sales A/c 1,20,000 GSTR-1 >>
Cr To 9% Output CGST A/c 10,800 Table 4C
Cr To 9% Output SGST A/c 10,800

Local Sale – Dr Debtors A/c 1,41,600 GSTR-1 >>

B2C S Cr To Local e-COM B2C sales A/c 1,20,000 Table 7A (1)
Cr To 9% Output CGST A/c 10,800 & 7A (2)
Cr To 9% Output SGST A/c 10,800

Inter State Dr Debtors A/c 1,18,000 GSTR-1 >>

Sale – B2C S Cr To Inter State e-COM B2C sales A/c 1,00,000 Table 7B (1)
Cr To 18% IGST A/c 18,000 & 7B (2)
Inter State Dr Debtors A/c 2,95,000 GSTR-1 >>
Sale – B2C L Cr To Inter State e-COM B2C sales A/c 2,50,000 Table 5B
Cr To 18% Output IGST A/c 45,000
 Outward Supply- Export & SEZ
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Outward Supply - For Exports
With payment Dr Debtors A/c 2,00,000 GSTR 1 >>
of duty Dr IGST Refund Due A/c. 36,000 Table 6A
Cr To Sales (export) A/c 2,00,000 With payment of
Cr To 18% Output IGST A/c 36,000 Duty
Without Dr Debtors A/c 1,25,000 GSTR 1 >>
payment of Cr To Sales (export) A/c 1,25,000 Table 6A
duty Under LUT or Bond
Outward Supply - For SEZ
With payment Dr Debtors A/c 2,00,000 GSTR 1 >>
of duty Dr IGST Refund Due A/c. 36,000 Table 6B
Cr To Sales (export) A/c 2,00,000 With payment of
Cr To 18% Output IGST A/c 36,000 Duty
Without Dr Debtors A/c 1,25,000 GSTR 1 >>
payment of Cr To Sales (export) A/c 1,25,000 Table 6B
duty Under LUT or Bond
 Advances Received from Customer
Nature Dr/Cr Journal Entry Amount Amount Reporting Table
Advance Dr Bank 11800 GSTR-1>>
received Cr To Advance Received 11800 Table-11A (1)

Invoice Same
Advances Received and Invoice Raised in the same month, the Tax would be levied on
Month
Supply no separate reporting for Advances is required.

Invoice not Dr GST on Advances 1800

raised in Cr To 9% Output CGST 900 GSTR-1>>
same Month Cr To 9% Output SGST 900 Table-11A (1)

Invoice raised Dr 18% IGST Output A 1800 GSTR-1>>

Subsequently Cr To GST on Advances 1800 Table-11B (2)
 Subsequent adjustment for advances
Nature Dr/Cr Journal Entry Amount Amount Reporting Table

B2B Dr Debtors A/c 1,41,600

Cr To Local B2B sales A/c 1,20,000 GSTR1 >>
Cr To 9% Output CGST A/c 10,800 Table 4A
Cr To 9% Output SGST A/c 10,800
Receipt Dr Bank 1,29,800
Cr To Debtors A/c 1,29,800 -

Advance Dr Advance Received 11,800 GSTR-1 >>

Adjusted Cr To Debtors A/c 11,800 Table-11B (1)
Dr 9% Output CGST A/c 900 GSTR-1 >>
Dr 9% Output SGST A/c 900 Table 11B (1)
Cr To GST on Advances 1800
 Credit Note / Debit Note
Nature Dr/Cr Journal Entry Amount Amount Reporting Table

Credit Note Dr Local B2B sales A/c 1,20,000

B2B Dr 9% Output CGST A/c 10,800 GSTR 1 >>
Dr 9% Output SGST A/c 10,800 Table 9B
Cr To Debtors A/c 1,41,600
Credit Note Dr Local B2C sales A/c 1,20,000
B2C L Dr 9% Output CGST A/c 10,800 GSTR 1 >>
Dr 9% Output SGST A/c 10,800 Table 9B
Cr To Debtors A/c 1,41,600
Credit Note Dr Local B2C sales A/c 1,20,000 GSTR 1 >>
B2C S Dr 9% Output CGST A/c 10,800 Table 10
Dr 9% Output SGST A/c 10,800 Adjustments to
Cr To Debtors A/c 1,41,600 Past sales
Debit Note Dr Debtors A/c 1,41,600
Cr To Local B2B sales A/c 1,20,000 GSTR 1 >>
Cr To 9% Output CGST A/c 10,800 Table 9B
Cr To 9% Output SGST A/c 10,800
Inward Supply
 Inward Supply- Registered Dealer
Nature Dr /Cr Ledger a/c Amount Amount Reporting Table

Purchase – Dr Purchases/Exepnses-B2B A/c 1,00,000

B2B Dr Input CGST A/c 14,000 GSTR-2>>
Dr Input SGST A/c 14,000 Table-3
Cr To Creditor A/c 1,28,000

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 – Dr Purchases/Expenses -RCM 50,000

RCM 9(3) Dr Input CGST A/c 1,250
Dr Input SGST A/c 1,250 GSTR-2>>
Cr To Creditor A/c 50,000 Table-4A
Cr To 2.5% Output CGST A/c 1,250
Cr To 2.5% Output SGST A/c 1,250

Purchases- Dr Purchases/Expenses -URD 50,000

URD Dr Input CGST A/c 3,000
C2B – 9(4) Dr Input SGST A/c 3,000 GSTR-2>>
Cr To Creditor A/c 50,000 Table-4B
Cr To 6% Output CGST A/c 3,000
Cr To 6% Output SGST A/c 3,000
 Inward Supply- URD Contd….
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table

RCM Liability end of Dr Input CGST A/c 3,000

the day Dr Input SGST A/c 3,000
As per Notification Cr To 6% Output CGST A/c 3,000
No.8/2017-Central Cr To 6% Output SGST A/c 3,000
Tax (Rate), purchases {Purchases are normally booked GSTR-2
up to 5k is exempted without payment of taxes. Day Table-4B
every day. end the taxes are calculated and
liability is created}

Dr Expenses
Dr Input IGST A/c 50,000
Import of Services GSTR-2
Cr To Creditor A/c 6,000 50,000
Table-4C
Cr To 12% IGST A/c 6,000
 Inward Supply- Import

Nature Dr/Cr Ledger a/c Amount Amount Reporting Table

Import of Dr 50,000
Purchases
Goods Dr 6,000 GSTR-2
Input IGST
Cr 50,000 Table-5A& 5B
To Creditor A/c
Cr 6,000
To 12% IGST A/c
{ Track Bill of Entry }
 Inward Supply- (Composition/Nil/ Nontaxable)

Nature Dr/Cr Ledger a/c Amount Amount Reporting Table

Purchase from Dr Purchases/Expenses a/c 1,000 GSTR-2>>

Composition Dealer Cr To Creditors a/c 1,000 Table-7 (2)

Exempted / NIL / Dr Purchases/Expenses a/c 1,000 GSTR-2>>

NON-Taxable Cr To Creditors a/c 1,000 Table-7 (3/4/5)
Purchase
 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 Dr Creditor a/c 1,00,000 GSTR-2>>

Unregistered Cr To Bank 1,00,000 Table-10A (1)
Vendor

Payment Voucher Dr Input CGST-RCM 2,500 GSTR-2>>

Dr Input SGST- RCM 2,500 Table-10A (1)
Cr To 2.5% Output CGST A/c 2,500 GSTR – 3 5A (1)
Cr To 2.5% Output SGST A/c 2,500

URD Purchase Dr Purchases a/c 1,00,000 GSTR-2>>

against advance Cr To Creditor 1,00,000 Table-4B
 Inward Supply- ISD related

Nature Dr/Cr Ledger a/c Amount Amount Reporting Table

ISD Purchase of Dr Expenses-B2B A/c 1,00,000 GSTR-6>>
SERVICES Dr Input CGST A/c 14,000 Table-3
Dr Input SGST A/c 14,000 (of ISD)
Cr To Creditor A/c 1,28,000
ISD Purchase of Dr Expenses-B2B A/c 1,28,000 GSTR-6>>
MATERIALS Cr To Creditor A/c 1,28,000 Table-3
(No Credit can be availed) (of ISD)
ISD Credit Transfer GSTR-2>>
(Head Office) Dr Branch Office A/c 28,000 Table-8A
Cr To Input CGST A/c 14,000 (of Branch)
Cr To Input SGST A/c 14,000 OR
GSTR-6>>
Table-5
(of ISD)
Journal Entries after filing GST Returns
 Upon filing of GSTR -1

Reporting
Nature Dr/Cr Ledger a/c Amount Amount
Table
Transfer to Dr 9% Output CGST A/c 21,600
Liability Dr 9% Output SGST A/c 21,600 GSTR-1
Ledger Dr 18% Output IGST A/c 54,000 Adjustment
entry
Cr To Electronic Liability Ledger CGST A/c 21,600
Cr To Electronic Liability Ledger SGST A/c 21,600
Cr To Electronic Liability Ledger IGST A/c 54,000
 Upon filing of GSTR -2
Nature Dr/Cr Ledger a/c Amount Amount Reporting Table
Transfer to Dr Electronic Credit CGST Ledger A/c 9,450
Credit Dr Electronic Credit SGST Ledger A/c 9,450 GSTR 2
Ledger Dr Electronic Credit IGST Ledger A/c 7,500 Adjustment
Dr Expenses A/c { T1,T2,T3} 2,000 entry
Cr To Input CGST A/c 9,450
Cr To Input SGST A/c 9,450
Cr To Input IGST A/c 9,500

Basis Dr Provisional ITC CGST A/c 900

mismatch Dr Provisional ITC SCGT A/c 900
Report Dr Provisional ITC IGST A/c 900 GSTR 2
Cr To Electronic Credit CGST Ledger A/c 900 Adjustment
Cr To Electronic Credit SGST Ledger A/c 900 entry
Cr To Electronic Credit IGST Ledger A/c 900
 Inward Supply-
Upon filing of GSTR -2 Contd…

Nature Dr/Cr Ledger a/c Amount Amount Reporting Table

Not attended Dr Purchase/Expense a/c 900 Mismatch Report

by supplier Cr To Provisional ITC XGST* A/c 900 Adjustment
Entry

Rectified by Dr Electronic Credit XGST Ledger A/c 900 Mismatch Report

supplier Cr To Provisional ITC XGST A/c 900 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 Dr Electronic Cash CGST Ledger A/c 1,000
to cash ledger Dr Electronic Cash SGST Ledger A/c 1,000
Dr Electronic Cash IGST Ledger A/c 1,000 Not Applicable
Cr To Bank A/c 3,000

TDS / TCS Dr Electronic Cash Ledger Auto

Cr To Govt / eCom Operator populated Not Applicable
 Inward Supply-
Upon filing of GSTR -3

Nature Dr/Cr Ledger a/c Amount Amount Reporting Table

Transfer to Dr Electronic Liability Ledger CGST A/c 21,600

Credit Ledger Dr Electronic Liability Ledger SGST A/c 21,600
Dr Electronic Liability Ledger IGST A/c 55,800 Adjustment
Cr To Electronic Credit CGST Ledger A/c 13,950 entry
Cr To Electronic Credit SGST Ledger A/c 13,950
Cr To Electronic Credit IGST Ledger A/c 7,500
Cr To Electronic Cash CGST Ledger A/c 6,750
Cr To Electronic Cash SGST Ledger A/c 26,850
Cr To Electronic Cash IGST Ledger A/c 30,000
 Transition Entries

Accounting for Transitional

Provisions & Data need to have
for filling TRAN-1 & TRAN -2
 Migration Entry 140(1)
PRE GST POST GST

Particulars Rs
Cenvat Credit in last Excise Returns 150 Particulars Rs
Input Credit available to CGST Credit 150
Input Tax Credit available in last VAT 250 Ledger
returns
Tax incidence of Non submitting of (175) Input Credit available to SGST Credit 75
statutory forms (C form to be submitted for Ledger (250-175)
sale value of Rs.5,000/- )(5.5%-2%)
Electronic Credit CGST Ledger Dr 150
Electronic Credit SGST Ledger Dr 75
To CENVAT Credit A/c 150
To Input Vat A/c 75
38
 Migration Entry 140(2)

PRE GST

Particulars Rs
Cenvat Credit available for Capital Goods 250
Input Tax Credit availed so far 125
Balance credit not availed 125

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 goods Entry to be passed for taking credit
Party Account A/c Dr XXX CGST Credit Liability A/c XX
Transitional Discount A/c Dr XX To Transitional discount A/c XX
To Sales @ 12% A/c XXX
To CGST Liability ledger A/c XX
To SGST Liability ledger A/c XX
 Trader 140(3) Deemed Credit

IGST Deemed Credit Deemed credit % on sale

Supply Value GST Rate Type of tax CGST paid
Paid rate value 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 Up on TRAN – 2

Party Account A/c Dr 548 Electronic Credit CGST Ledger A/c 12

Transitional Discount A/c Dr 12 To Transitional discount A/c 12
To Sales @ 12% A/c 500
To CGST Liability ledger A/c 30
To SGST Liability ledger A/c 30
Thank You
venu@vnv.ca

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