Check sibling questions


Normal Scheme

We get Input of Purchase, so we show Input in Purchase entry

Entry is 


Purchase Dr

Input CGST Dr

Input  SGST Dr

To Party



For Composition Scheme

We do not get any Input

So we pass Purchase Entry including tax


Purchase Dr

To Party




Purchase Made 20000+500 CGST+500 GST from A


Entry in Normal Scheme will be

Purchase  Dr     20000

Input  CGST Dr   500

Input SGST Dr     500

To A                   21000



Entry in Composition Scheme will be



Purchase  Dr     21000

To A                   21000





In Normal Scheme, we charge GST From Customer

So in Entry, we show tax separately


Party Dr

To Sales

To Output CGST

To Output SGST





In Composition Scheme, we do not charge GST From Customer

So in Entry, we do not show tax 


Party Dr

To Sales




Sales Made 40000 (Including 5% tax)

Entry in Normal Scheme



Party Dr  40000

To Sales             38095

To Output CGST  952

To Output SGST   952




Entry in Composition Scheme


Party Dr   40000

To Sales             40000




A Person purchases goods form Wholesaler at 100000+5% GST

He sells same for Rs 150000 to customer (tax inclusive)

What is tax Payable under Normal scheme or Composition Scheme?

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What is Profit earned in both schemes

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What is Entry for Purchase Sales in Normal Scheme

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What is Entry for Purchase Sales in Composition Scheme

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.