GST on Journals where Services are Paid Directly through Cash or Bank

Invoice and credit memo can be posted from journals. GST calculation logic for journals will be same as GST calculation for documents.

GST calculation process has been explained in this document.

Create a general journal or a bank or cash payment voucher

  1. Choose the Search for Page or Report icon, enter General Journal, and then choose the related link.
  2. Select G/L Account in account type and G/L Account or Bank Account in balancing account type, and then select the cash or bank accounts.
  3. GST (CGST/SGST/UTGST/IGST) to be calculated on Direct Expenses (Services) being paid through cash or bank, any legal fees, telephone expenses, etc.

For example, there is an expense of INR 10,000 and 18% GST (i.e. 9% CGST and 9% SGST/UTGST in case of Intra-State or Intra-Union Territory transaction or 18% IGST in case of Inter-State transaction) has to be charged on expense amount.

  • GST calculation will appear in the Fact Box, as following:

    Component Amount
    GST Base Amount 10,000
    CGST 900
    SGST 900
    IGST 1800
  • GL Entries for Intra-State or Intra-Union Territory purchase of services where service provider is unregistered, will be as following:

    Particulars Amount
    Service Account 10000
    SGST/UTGST Receivable Account 900
    CGST Receivable Account 900
    Cash/Bank Account -10000
    SGST/UTGST Payable Account -900
    CGST Payable Account -900
  • GL Entries for Intra-state purchase of services where service provider is registered, will be as following:

    Particulars Amount
    Service Account 10000
    CGST Receivable Account 900
    SGST/UTGST Receivable Account 900
    Cash/Bank Account -11800

Tip

In case of Inter-State purchase of services, IGST will be applicable.

See Also

GST on Advance Payment to Vendor

Note

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