GST Accounting Entries, How to pass accounting entries under GST: 
How to pass accounting entries under GST, How to pass GST Accounting Entries In India, GST Accounting Entries, How to pass accounting entries under GST, GST Accounting Entries in Tally, GST Accounting Entries in Sap, Examples of GST Entries, How to pass GST Entries, Entry for Purchase in GST, Entry for Sale in GST, GST Journal Entries, Entries to be passed in GST, Accounting ledgers which needs to be maintained by assesse under GST
Goods and service tax or GST will be one tax to subsume all below taxes.

(i) Taxes currently levied and collected by the Centre :
a. Central Excise duty
b. Duties of Excise (Medicinal and Toilet Preparations)
c. Additional Duties of Excise (Goods of Special Importance)
d. Additional Duties of Excise (Textiles and Textile Products)
e. Additional Duties of Customs (commonly known as CVD)
f. Special Additional Duty of Customs (SAD)
g. Service Tax
h. Central Surcharges and Cesses so far as they relate to supply of goods and services

(ii) State taxes that would be subsumed under the GST are :
a. State VAT
b. Central Sales Tax
c. Luxury Tax
d. Entry Tax (all forms)
e. Entertainment and Amusement Tax (except when levied by the local bodies)
f. Taxes on advertisements
g. Purchase Tax
h. Taxes on lotteries, betting and gambling
i. State Surcharges and Cesses so far as they relate to supply of goods and services.
Under Current scenario Separate accounts have to be maintained for excise, VAT, CST and service tax. To know How to pass Vat, Excise, Service Tax and TDS Entries under current Scenario Click Here

Under Current scenario Below mentioned accounts related to indirect taxes needs to be prepared by an organization.

• Excise payable a/c (for manufacturers)
• CENVAT credit a/c (for manufacturers)
• Output VAT a/c
• Input VAT a/c
• Input Service tax a/c
• Output Service tax a/c

GST Accounting Entries, How to Pass Accounting Entries Under GST

Under GST Regime Service tax, VAT, Excise will be maintained under one account and assesse will get benefit of setting of and availing Input credit at all levels.
Following are the Accounting ledgers which needs to be maintained by assesse under GST for recording in books of accounts apart from Purchase, Sales and other ledgers.

• Input CGST A/C
• Output CGST A/C
• Input SGST A/C
• Output SGST A/C
• Input IGST A/C
• Output IGST A/C
• Electronic Cash Ledger (Government GST portal to pay GST)

The Accounting entries can be divided into two Parts: One is Intra State (within State) and other is Inter State (other State).

Accounting Entries Under GST Regime

Lets take in to consideration below examples for GST Entries.

• GST Accounting Entries for Intra state Transactions (i.e within the State)

Mr. A purchased goods Rs. 2,00,000 locally (intrastate). He sold them for Rs. 3,00,000 in the same state. He paid legal consultation fees Rs. 10,000. He purchased furniture for his office for Rs. 40,000 from XYZ Furniture
(Assuming CGST @8% and SGST@8%)

Total Input CGST = 16,000+800+3,200 = Rs. 20,000
Total Input SGST = 16,000+800+3,200 = Rs. 20,000
Total output CGST = 24,000
Total output SGST = 24,000
Therefore Net CGST payable = 24,000-20,000 = 4,000
Net SGST payable = 24,000-20,000 = 4,000
Thus Output liability of Rs. 48,000 has bee adjusted with Input tax credit of Rs. 40,000. So, net tax liability of CGST is Rs. 4,000 and SGST Rs. 4,000.

• GST Accounting Entries for Inter state transactions (i.e Outside the State)

Mr. X purchased goods Rs. 3,00,000 from outside the State. He sold Rs. 3,00,000 locally. He sold Rs.2,00,000 outside the state. He paid telephone bill Rs. 10,000. He purchased an A/C for his office for Rs. 24,000 (locally)
Assuming CGST @8% and SGST@8%

Total CGST input =800+1920=2,720
Total CGST output =24,000
Total SGST input =800+1920=2,720
Total SGST output =24,000
Total IGST input =48,000
Total IGST output =32,000
Any IGST credit will first be applied to set off IGST and then CGST.  So out of total input IGST of Rs. 48,000, firstly it will be completely setoff against IGST. Then balance Rs.16,000 against CGST.
From the total liability Rs.80,000, only Rs. 26,560 is payable

• Entry for Purchase of Goods under GST : Example of booking input under GST

• Entry for Sale of Goods : Example of Booking Output liability under GST

Read the Section 35 of CGST Act,2017 of Bare Act – Accounts and other records
Read the Section 35 of CGST Act,2017 of Bare Act – Period of retention of accounts

• Example of GST Entry for expenditure incurred for business purpose

• Examples of GST Entry for Purchase of Asset:

• Entry for set off & Payment GST:

• To set off & Payment Output SGST 

Output SGST A/c. ——Dr.

To Input SGST A/c. ——Cr.

To Input IGST A/c.** ——- Cr.

To Electronic Cash ledger A/c. ——Cr.

(** Input IGST credit  is allowed for setting off Output SGST liability. But after setting of Output IGST liability, Output CGST liability. )

• To set off & Payment Output CGST 

Output CGST A/c. ——Dr.

To Input CGST A/c. —– Cr.

To Input IGST A/c.** ——- Cr.

To Electronic Cash ledger A/c. ——Cr.

(** Input IGST credit  is allowed for setting off Output CGST liability. But after setting of Output IGST liability. )

• To set off & Payment Output IGST 

Output IGST A/c. ——Dr.

To Input IGST A/c. —– Cr.

To Electronic Cash ledger A/c. —– Cr.

• GST Entry When GST TDS has been Deducted along with Income Tax TDS:

• To book Income (In case of Intrastate Transaction)

Debtor/Cash A/c. ———-Dr.

Income Tax TDS A/c. ——Dr.

CGST TDS A/c.  ————-Dr.

SGST TDS A/c.   ————-Dr.

To Income A/c. ————-Cr.

To CGST A/c.  —————Cr.

To SGST A/c.  —————Cr.

• To book Income (In case of Interstate Transaction)

Debtor/Cash A/c. ———-Dr.

Income Tax TDS A/c. ——Dr.

IGST TDS A/c.  ————-Dr.

To Income A/c. ————-Cr.

To IGST A/c.  —————Cr.