Since GST is in place and has replaced old indirect taxation from 1 st July, 2017, new concept of RCM (Reverse Charge Mechanism) for buying from unregistered dealer and GST on advance received from the customer has made difficulties for most of the accountant. I have tried to cover all the scenario which helps to understand the exact flow of entries in the books.
Now a days every accountant is required to ensure correct accounting of the GST in the books which will would help at the month end to compile all the information for the purpose of the GST Return Filling and ERP plays an important role towards the same.
Main Body :
Every accountant is willing to know what should be correct flow accounting in GST which will help them to provide the information for GST return purpose and the Software Plays a key role for providing the correct information for return filling purpose and I have tried to provide the correct flow of accounting in GST which will be definitely be helpful for all the accountant.
The pain for GST accounting is RCM and Advance received from the customer otherwise all the entries which we used to do in the VAT regime is the same in the GST.
Obligation of GST on RCM and Advance received from the customer needs to fulfilled by paying to government by “Electronic Cash Ledger Only”
As threshold limit for registration in GST is very low i.e. 20 Lakhs (Rs. 10 Lakhs for north east area) therefore every registered person is required to understand the correct flow of accounting in GST which was not the earlist while situation.
Registered person should comply with the GST and ERP should be able to provide the correct information and flow or accounting for all return filling purposes.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018