ENTRIES FOR PURCHASE

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

 

 

Example

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

 

 

 

ENTRIES FOR SALES

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

 

 

Example

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

 

 

Question

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?

View Answer

 

 

 

 

What is Profit earned in both schemes

View Answer

 

What is Entry for Purchase Sales in Normal Scheme

View Answer

 

 

 

 

 

 

 

 

 

What is Entry for Purchase Sales in Composition Scheme

View Answer
  1. Courses
  2. Free GST Certification Course

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 10 years. He also provides Accounts Tax GST Training in Delhi and Pune.