GST Accounting Transaction with Example

#	Accounting entries for Outward Supplies
Sr	Transaction	Accounting Entry	Debit	Credit
1	Outward supplies (sales within the state – B2B)	Debtors A/c	Dr
		Outward Supplies – B2B (within the state) Output Tax Liability – CGST A/c Output Tax Liability – SGST A/c		Cr
2	Outward supplies (sales outside the state – B2B)	Debtors A/c	Dr
		Outward Supplies – B2B (within the state) Output Tax Liability – IGST A/c		Cr
3	Outward supplies (sales within the state – B2C)	Debtors A/c	Dr
		Outward Supplies – B2C (within the state) Output Tax Liability – CGST A/c Output Tax Liability – SGST A/c		Cr
4	Outward supplies (sales outside the state – B2C)	Debtors A/c	Dr
		Outward Supplies – B2C (within the state) Output Tax Liability – IGSTA/c		Cr
5	Debit Note (within the state – B2B)	Debtors A/c	Dr
		Outward Supplies – B2B (within the state)  Output Tax Liability – CGST A/c  Output Tax Liability – SGST A/c		Cr
6	Debit Note (outside the state – B2B)	Debtors A/c	Dr
		Outward Supplies – B2B (within the state)  Output Tax Liability – IGSTA/c		Cr
7	Debit Note (within the state – B2C)	Debtors A/c	Dr
		Outward Supplies – B2C (within the state)  Output Tax Liability – CGST A/c  Output Tax Liability – SGST A/c		Cr
8	Debit Note (outside the state – B2C)	Debtors A/c	Dr
		Outward Supplies – B2C (within the state)  Output Tax Liability – CGST A/c Output Tax Liability – SGST A/c		Cr
9	Crcredit Note within the state – B2B	Outward Supplies – B2B (within the state) Output Tax Liability – CGST A/c Output Tax Liability – SGST A/c	Dr
		Debtors A/c		Cr
10	Crcredit Note Outside the state – B2B	Outward Supplies – B2B (within the state)  Output Tax Liability – IGST A/c  Debtors A/c	Dr
		Debtors A/c		Cr
11	Crcredit Note within the state – B2C	Outward Supplies – B2C (within the state) Output Tax Liability – CGST A/c  Output Tax Liability – SGST A/c	Dr
		Debtors A/c		Cr
12	Crcredit Note Outside the state – B2C	Outward Supplies – B2C (within the state)  Output Tax Liability – IGST A/c	Dr
		Debtors A/c		Cr
13	Stock Transfer Within the State	Inter Branch Transfers A/c	Dr
		Outward Supplies – Stock Transfer A/c (within the state)		Cr
14	Stock Transfer Outside State	Inter Branch Transfers A/c	Dr
		Outward Supplies – Stock Transfer A/c (within the state) Output Tax Liability – IGST Stock Transfer A/c		Cr
15	Advance Received from Customer within the state	Cash or Bank A/c  GST on Advances – CGST A/c GST on Advances – SGST A/c	Dr
		Customers A/c  Output Tax Liability – CGST A/c  Output Tax Liability – SGST A/c		Cr
16	Advance Received from Customer outside the state	Cash or Bank A/c GST on Advances – IGST A/c	Dr
		Customers A/c  Output Tax Liability – IGST A/c		Cr
17	Customer Advance Adjusted subsequently – within the state	Output Tax Liability – CGST A/c  Output Tax Liability – SGST A/c	Dr
		GST on Advances – CGST A/c GST on Advances – SGST A/c		Cr
18	Customer Advance Adjusted subsequently – outside the state	Output Tax Liability – IGST A/c	Dr
		GST on Advances – IGST A/c		Cr
	Accounting entries for Inward Supplies
	Transaction	Accounting Entry	Debit	credit
19	Inward supplies (Purchases within the state – Registered)	Inward Supplies – Registered (within the state) A/c ITC Interim Recovery – CGST A/c  ITC Interim Recovery – SGST A/c	Dr
		Creditors A/c		Cr
20	Inward supplies (Purchases Outside the state – Registered)	Inward Supplies – Registered (outside the state) A/c ITC Interim Recovery – IGST A/c	Dr
		Creditors A/c		Cr
21	When input tax credit is taken – (Purchases within the state – Registered)	ITC Recovery – CGST A/c  ITC Recovery – SGST A/c	Dr
		ITC Interim Recovery – CGST A/c ITC Interim Recovery – SGST A/c		Cr
22	When input tax credit is taken – (Purchases Outside the state – Registered)	Input Tax Credit RA – IGST A/c	Dr
		Input Tax Credit (IRA) – IGST A/c		Cr
23	Inward Supplies – Composition Tax Payer	Inward Supplies – Composition Taxpayers A/c	Dr
		Creditors A/c		Cr
24	Inward Supplies – Non-GST Supplies	Inward Supplies – Non-GST A/c	Dr
		Creditors A/c		Cr
25	Inward Supplies – Exempted	Inward Supplies – Exempted A/c	Dr
		Creditors A/c		Cr
26	Inward Supplies – Nil Rated	Inward Supplies – Nil Rated A/c	Dr
		Creditors A/c		Cr
27	Inward Supplies – Unregistered Tax Payers (Reverse Charge)	Inward Supplies – Unregistered A/c  ITC Reverse Charge Recovery – CGST A/c ITC Reverse Charge Recovery – SGST A/c	Dr
		Creditors A/c  Reverse Charge Liability – CGST A/c  Reverse Charge Liability – SGST A/c		Cr
28	When input tax credit is availed on the reverse charge inward supplies	ITC Recovery – CGST A/c  ITC Recovery – SGST A/c	Dr
		ITC Reverse Charge Recovery – CGST A/c ITC Reverse Charge Recovery – SGST A/c		Cr
29	Reversal of Input tax credit for inward supplies within the state	ITC Reversal – CGST A/c ITC Reversal – SGST A/c GST ITC Interest Interim Account – CGST A/c GST ITC Interest Interim Account – SGST A/c	Dr
		ITC Recovery – CGST A/c ITC Recovery – SGST A/c GST ITC Interest Payable Account – CGST A/c GST ITC Interest Payable Account – SGST A/c		Cr
30	Recovery of Input tax credit after Reversal of Input tax credit for  inward supplies outside the state	ITC Recovery – IGST A/c GST ITC Interest Recovered Account – IGST A/c	Dr
		ITC Reversal – IGST A/c GST ITC Interest Interim Account – IGST A/c		Cr
	Accounting entries at the time of filing of the returns
	Transaction	Accounting Entry	Debit	Credit
31	At the time of utilization of Input Tax credit	Output Tax Liability – CGST A/c  Output Tax Liability – SGST A/c  Output Tax Liability – IGST A/c  Output Tax Liability – GST CESS A/c	Dr
		ITC Recovery – CGST A/c ITC Recovery – SGST A/c  ITC Recovery – IGST A/c ITC Recovery – GST CESS A/c		Cr
	For a finance person or indirect tax person, the heart is the chart of accounts or the ledger accounts and if we have this in place, the return filing and reconciliation will be simple.