⚡ GST Accounting • Step-by-Step

GST Journal Entries

Complete guide with practical examples for profit-case scenarios.

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receipt

Example Ledger

ABC Pvt. Ltd. sold goods with these details:

Value Before GST₹ 1,00,000
CGST @ 9%₹ 9,000
SGST @ 9%₹ 9,000
Invoice Value₹ 1,18,000
calculate

GST Summary

Output GST
₹ 18,000
Input GST (ITC)
₹ 12,000
Net GST Payable
₹ 6,000

Detailed Journal Entries

Particulars Debit (₹) Credit (₹) Explanation
1. When Goods Sold (Invoice Raised)
Debtors A/c Dr. 1,18,000 - To record sales along with output CGST & SGST
To Sales A/c - 1,00,000
To Output CGST A/c
To Output SGST A/c		 - 9,000
9,000
2. When Goods Purchased (Stock Entry)
Purchases A/c Dr.
Input CGST A/c Dr.
Input SGST A/c Dr.		 1,00,000
6,000
6,000		 - To record purchases along with input CGST & SGST (ITC Available)
To Creditors A/c - 1,12,000
3. When Payment Made to Supplier
Creditors A/c Dr. 1,12,000 - Payment made to vendor
To Bank A/c - 1,12,000
Key Takeaways
  • Always pass entries on invoice date (not on payment date).
  • ITC should be availed only if goods/services are received and eligible.
  • Reconcile GSTR-2B, GSTR-3B and Books regularly.
Flow of Transaction
1. Sale of Goods: Goods sold to customer with GST invoice.
2. Purchase of Goods: Goods purchased from supplier with GST invoice.
3. Payment of GST: Net GST paid to Government through GST Portal.
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