Accounting treatment in case of offset of tax liability - GST

-

Accounting treatment in case of offset of tax liability - GST


S. No.

Particulars

Debit (`)

Credit (`)

Reference

(I)

Transfer of output liability to E-liability ledgers upon filing of GSTR-1

 

 

Output SGST A/c

Dr.

****

 

B/S

 

Output CGST A/c

Dr.

****

 

B/S

 

Output IGST A/c

Dr.

****

 

B/S

 

Output Cess A/c

Dr.

****

 

B/S

 

    To E-liability Ledger CGST A/c

 

 

****

B/S

 

    To E-liability Ledger SGST A/c

 

 

****

B/S

 

    To E-liability Ledger IGST A/c

 

 

****

B/S

 

    To E-liability Ledger Cess A/c

 

 

****

B/S

 

(Being output liability transferred to E-liability ledgers upon filing of GSTR-1)

 

 

 

 

 

 

 

 

 

 

(II)

Transfer of ITC on Inward supply of goods or services or both), to Electronic Credit ledger upon filing of GSTR-2

 

 

E-credit Ledger CGST A/c

Dr.

****

 

B/S

 

E-credit Ledger SGST A/c

Dr.

****

 

B/S

 

E-credit Ledger IGST A/c

Dr.

****

 

B/S

 

E-credit Ledger Cess A/c

Dr.

****

 

B/S

 

    To CGST - Input A/c

 

 

****

B/S

 

    To SGST - Input A/c

 

 

****

B/S

 

    To IGST - Input A/c

 

 

****

B/S

 

    To Cess - Input A/c

 

 

****

B/S

 

(Being ITC on Inward supply of goods or services or both transferred (To the extent of claim for ITC but including Provisional Credit), to Electronic Credit ledger upon filing of GSTR-2)

 

 

 

(III)

Mismatched ITC identified and reversed.

 

 

Mismatch E-credit Ledger CGST A/c

Dr.

****

 

B/S

 

Mismatch E-credit Ledger SGST A/c

Dr.

****

 

B/S

 

Mismatch E-credit Ledger IGST A/c

Dr.

****

 

B/S

 

Mismatch E-credit Ledger Cess A/c

Dr.

****

 

B/S

 

    To E-credit ledger CGST A/c

 

 

****

B/S

 

    To E-credit ledger SGST A/c

 

 

****

B/S

 

    To E-credit ledger IGST A/c

 

 

****

B/S

 

    To E-credit ledger Cess A/c

 

 

****

B/S

 

(Being mismatched ITC identified and reversed)


 

 

 

(IV)

Mismatch ITC rectified by supplier

 

 

E-credit ledger CGST A/c

Dr.

****

 

B/S

 

E-credit ledger SGST A/c

Dr.

****

 

B/S

 

E-credit ledger IGST A/c

Dr.

****

 

B/S

 

E-credit ledger Cess A/c

Dr.

****

 

B/S

 

To Mismatch E-credit Ledger CGST A/c

 

 

****

B/S

 

To Mismatch E-credit Ledger SGST A/c

 

 

****

B/S

 

To Mismatch E-credit Ledger IGST A/c

 

 

****

B/S

 

To Mismatch E-credit Ledger Cess A/c

 

 

****

B/S

 

(Being credit transferred back to the E-credit Ledger, when mismatch ITC is rectified by the supplier)

 

 

 

 

(V)

Mismatch ITC not rectified by supplier

 

 

 Inward Supply/Expense/Vendor A/c

Dr.

****

 

P&L/B/S

 

To Mismatch E-credit Ledger CGST A/c

 

 

****

B/S

 

To Mismatch E-credit Ledger SGST A/c

 

 

****

B/S

 

To Mismatch E-credit Ledger IGST A/c

 

 

****

B/S

 

To Mismatch E-credit Ledger Cess A/c

 

 

****

B/S

 

(Being credit charged to the Expense or purchase or vendor, when mismatch ITC is not rectified by the supplier)

 

 

 

 

(VI)

On Deduction of tax by Govt. department etc. or  on collection of tax by E-Commerce Operator

 

 

E-cash ledger CGST A/c

Dr.

****

 

B/S

 

E-cash ledger SGST A/c

Dr.

****

 

B/S

 

E-cash ledger IGST A/c

Dr.

****

 

B/S

 

E-cash ledger Cess A/c

Dr.

****

 

B/S

 

    To Government/Ecommerce Operator A/c

 

 

****

B/S

 

(Being credit of TDS deposited by Government or E-commerce Operator recognised)

 

 

 

 

(VII)

Payment of tax through E-Cash Ledger if credit balance is not sufficient

 

 

E-cash ledger CGST A/c

Dr.

****

 

B/S

 

E-cash ledger SGST A/c

Dr.

****

 

B/S

 

E-cash ledger IGST A/c

Dr.

****

 

B/S

 

E-cash ledger Cess A/c

Dr.

****

 

B/S

 

To Bank A/c

 

 

****

B/S

 

(Being payment of tax made through E-Cash Ledger (if credit balance is not sufficient))

 

 

 

 

(VIII)

Adjustment entry upon filing of GSTR-3

 

 

E-liability ledger CGST A/c

Dr.

****

 

B/S

 

E-liability ledger SGST A/c

Dr.

****

 

B/S

 

E-liability ledger IGST A/c

Dr.

****

 

B/S

 

E-liability ledger Cess A/c

Dr.

****

 

B/S

 

    To E-credit ledger CGST A/c

 

 

****

B/S

 

    To E-credit ledger SGST A/c

 

 

****

B/S

 

    To E-credit ledger IGST A/c

 

 

****

B/S

 

    To E-credit ledger Cess A/c

 

 

****

B/S

 

    To E-cash ledger CGST A/c

 

 

****

B/S

 

    To E-cash ledger SGST A/c

 

 

****

B/S

 

    To E-cash ledger IGST A/c

 

 

****

B/S

 

    To E-cash ledger Cess A/c

 

 

****

B/S

 

(Being adjustment entry made upon filing of GSTR 3)

 

 

 

 


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