Sir please verify this ledger postig is correct in gst
Intra-state
1. Mr. X purchased goods Rs. 1,00,000 locally (intrastate)
2. He sold them for Rs. 1,50,000 in the same state
3. He paid legal consultation fees Rs. 5,000
4. He purchased furniture for his office for Rs. 12,000
Assuming CGST @5% and SGST@5%
S.No Account Name Debit Credit
1 Purchase A/c 100000.00
Input CGST A/c 5000.00
Input SGST A/c 5000.00
To Creditors A/c 1,10,000.00
2 Debtors A/c 1,65,000.00
To Sales A/c 1,50,000.00
To Output CGST A/c 7,500.00
To Output SGST A/c 7,500.00
3 Legal fees A/c 5,000.00
Input CGST A/c 250.00
Input SGST A/c 250.00
To Bank A/c 5,500.00
4 Furniture A/c 12,000.00
Input CGST A/c 600.00
Input SGST A/c 600.00
To ABC Furniture Shop A/c 13,000.00
Total Input CGST=5,000+250+600= Rs. 5,850
Total Input SGST=5,000+250+600= Rs. 5,850
Total output CGST=7,500
Total output SGST=7,500
Therefore Net CGST payable=7,500-5,850=1,650
Net SGST payable=7,500-5,850=1,650
S.No. Account Name Debit Credit
5 Output CGST A/c 7,500.00
Output SGST A/c 7,500.00
To Input CGST A/c 5,850.00
To Input SGST A/c 5,850.00
To Electronic Cash Ledger A/c 3,300.00
Thus due to input tax credit, tax liability of Rs. 15,000 is reduced to only Rs.3,300. Also, GST on legal fees (Services) is also adjusted which was not possible in current tax regime.
If there had been any input tax credit left it would have been carried forward to the next year.