GST Accounting Entries for Sales and Purchases

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In this topic you can learn how to post GST accounting entries for sales and purchase transactions with an example.

Example for Local Purchases

ABC company has purchased 4 qty of HP laptops from local X company each @ Rs.25,000 with GST of 18%.

GST Local Inward Supplies (Within state)

HP Laptops A/c Dr     1,00,000

SGST A/c Dr                  9,000

CGST A/c Dr                 9,000

To X Company A/c     1,18,000

Example for Local Sales

ABC company has sold 4 qty of HP laptops to local Y company each @ Rs.30,000 with GST of 18%.

GST Local Outward Supplies (Within state)

Y Company A/c Dr    1,41,600

To HP Laptops A/c    1,20,000

To SGST A/c               10,800

To CGST A/c              10,800

Example for Inter-State Purchases

ABC company (Hyderabad) has purchased 4 qty of HP laptops from XYZ company (Bangalore) each @ Rs.25,000 with GST of 18%.

GST Inter-State Inward Supplies Entry

HP Laptops A/c Dr     1,00,000

IGST A/c Dr                 18,000

To XYZ Company A/c  1,18,000

Example for Inter-State Sales

ABC company (Hyderabad) has sold 4 qty of HP laptops to Balu Tranders (Bangalore) each @ Rs.30,000 with GST of 18%.

GST Inter-State Outward Supplies Entry

Balu Traders A/c Dr   1,41,600

To HP Laptops A/c    1,20,000

To IGST A/c               21,600

Source : https://www.waytosimple.com/tax/gst/gst-accounting-entries-for-sales-and-purchases/

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