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
 

 

 

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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.