By CMA . R GOPAL MFM., M.Phil., FCMA , Practicing Cost Accountant

1. The Institute of Cost Accountants of IndiaERODE CHAPTERAccountingTreatments for GST5th august 2017--6.00 p.m to 9.00 p.m. By CMA. R GOPAL MFM., M.Phil., FCMA, Practicing Cost Accountant

2. Purchases Entry(without GST entry) • Purchases a/c Dr …….. • .. • .. • To sundry creditors a/c ………..

3. Purchases made locally(with GST entry) • Purchases a/c Dr …….. • .ITC CGST A/C Dr …… • .ITC SGST A/C Dr …….. • To Sundry Creditors a/c ……….. (CGST Vs. SGST will be divided equally based on rate)

4. Purchases made Inter-state(with GST entry) • Purchases a/c Dr …….. • ITC IGST A/C Dr …… • To Sundry Creditors a/c ………..

5. Purchases made Outside India(IMPORT) (with GST entry) • Purchases a/c Dr …….. • ITC IGST-RCM—NM--A/C Dr …… • To Sundry Creditors a/c ……….. • To IGST payable a/c ………. • (First pay GST. Then claim the Input under reverse credit mechanism on next month)

6. Purchases made withUnregistered dealer • Purchases a/c Dr …….. • ITC IGST-RCM—NM--A/C Dr …… • To Sundry Creditors a/c ……….. • To IGST payable a/c ………. • (First pay GST. Then claim the Input under reverse credit mechanism on next month) • ****** Return back period is six months

7. Sales Entry(without GST entry) • Sundry debtors a/c Dr • .. • .. • To sales

8. Local sales • Sundry debtors a/c Dr ………. • To SGST a/c ……………. • To CGST a/c ……………. • To sales ……………

9. Inter-state sales • Sundry debtors a/c Dr ………. • To IGST a/c ……………. • To sales ……………

10. Up-country sales(Export) • Sundry Debtors A/c _ __Dr. • IGST (90%)Refund Receivable A/c Dr. • IGST (10%)Refund Receivable A/c Dr. • To Sales A/c • To IGST Payable A/c

11. Export Under Bond /LUT • (Clear goods without payment of duty and claim the refund of Input credits): • CGST Refund Receivable A/c _ Dr. • SGST Refund Receivable A/c _ Dr. • IGST Refund Receivable A/c _ Dr. • To CGST Input Credit A/c (unutilized input credit) • To SGST Input Credit A/c (unutilized input credit) • To IGST Input Credit A/c (unutilized input credit) • In this case, the exporter has to record sale without charging any tax and determine the unutilized input credit of inputs for claiming the refund

12. Sales made with unregistered dealer (Re-sale is continued) • Sundry Debtors or cash A/c _ __Dr. • To Sales A/c • (Enquiry will be made to the seller, if transaction with unregistered dealer) & • Another Entry:- •  Profit and Loss a/c Dr. …… • To IGST a/c …………. • (No refund; but penalty will be imposed)

13. Inter-state Sales with ultimate customer • (Not for commercial purpose & sale to ultimate customer & No chance for re-sale) • Sundry Debtors A/c _ __Dr. • To Sales A/c ………… • To IGST A/c …………..

14. Local Sales with ultimate customer • (Not for commercial purpose & sale to ultimate customer & No chance for re-sale) • Sundry debtors a/c Dr ………. • To SGST a/c ………. • To CGST a/c ……………. • To sales ……………

15. Expenses met locally • Expenses a/c Dr. • Input CGST a/c Dr. • Input SGST a/c Dr. • To sundry creditors for expenses

16. Expenses met with other states • Expenses a/c Dr. • Input IGST a/c Dr. • To sundry creditors for expenses

17. Expenses met with other country IMPORT • Expenses a/c Dr. • Input IGST—RCM--NM a/c Dr. • To sundry creditors for expenses • To IGST payable a/c

18. Expenses met with Unregistered dealer • Expenses a/c Dr. • Input IGST—RCM--NM a/c Dr. • To sundry creditors for expenses • To IGST payable a/c

19. EXPENSES NON-ENTITLEMENT OF INPUT TAX CREDIT • o Food and beverages • o Outdoor catering • o Beauty treatment o Health services • o Cosmetic and plastic surgery • o Membership of a club • o Health and fitness centre • o Life & Health insurance • o Travel benefit to employees - LTC

20. Entry for the above(if GST not paid) • Expenses a/c Dr. • Profit and loss a/c Dr. • To sundry creditors for expenses • To IGST payable a/c • (Input credit under RCM is not allowed)

21. Entry for the above(if GST is paid) • Expenses a/c Dr. • To sundry creditors for expenses • To IGST payable a/c • (Input credit under RCM is not allowed)

22. NON-ENTITLEMENT OF INPUT TAX CREDIT FOR EXPENSES INCURRED • · After the expiry of one year from the date of issue of tax invoice relating to such supply of goods and / or services. •  Motor vehicles, except when they are supplied in the usual course of business or providing the following taxable services viz., Transportation of passengers, transportation of goods, imparting training on motor driving skills •  Goods and services provided in relation to the following below when such goods and / or services are used primarily for personal use or consumption of any employee; •  Goods and/ or services acquired by the principal in the execution of works contract for construction of immovable property, other than plant and machinery.

23. Asset purchased local (Invoice date) • Fixed asset a/c Dr …….. • CG-ITC CGST A/C Dr …… • CG-ITC SGST A/C Dr …….. • To Creditors of bank or cash a/c ….. • Claim:-(5% points per quarter or part thereof)

24. Asset purchasedInterstate --(Invoice date) • Fixed asset a/c Dr …….. • CG-ITC IGST A/C Dr …… • To Creditors or cash or bank a/c …….. • Claim:-(5% points per quarter or part thereof)

25. Asset imported (Invoice date) • Fixed asset a/c Dr …….. • CG-ITC IGST-RCM—NM--A/C Dr …… • To Sundry Creditors a/c ……….. • To CG-IGST payable a/c ………. • Claim:-(5% points per quarter or part thereof)

26. Asset sold(date of sales made) • Debtors or cash or bank Dr ……. • To Fixed asset a/c ………… • (Remaining CG-ITC cannot be transferred and kept it as unclaimed & write off as expenses) • (Regarding purchaser:-- No CG-ITC for second hand capital goods)

27. Advances received • By bank • TO Tax SGST on advance • TO Tax CGST on advance

28. Advances paid • SGST advance • CGST advance • To bank

29. input tax credit shall not be available • “construction” includes re-construction, renovation, additions or alterations or repairs, to the extent of capitalisation, to the said immovable property; • (i) land, building or any other civil structures; • (ii) telecommunication towers; and • (iii) pipelines laid outside the factory premises.

30. Other Balance sheet items

31. 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. )

32. 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. )

33. To set off & Payment Output IGST • Output IGST A/c. ——Dr. • To Input IGST A/c. —– Cr. • To Electronic Cash ledger A/c. Cr.

34. Recent cases on advance recd • CASE:---1 First Bill Issued then Amount Received • CASE 2:---Payment Received in Advance • CASE 3 Partial Payment Received in Advance • CASE 4 Lump sum Payment Received in Advance • (For all four cases refer class room materials issued for circulation to members)

35. ……. • Thanks • Query please?