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Accounting of Goods and Services Tax (GST) 12.7

E. Journal entries of transactions on which GST (CGST and SGST or IGST) is paid but Input
Credit is not allowed.
If Input Credit of GST Paid is not allowed, GST Paid is an expense and is debited to Expense or
Asset Account.
S.No. Transaction Journal Entry
1. Food and Beverages Expenses Business Promotion Expenses A/c ...Dr.
(Such as Restaurant Bill) To Cash/Bank A/c
2. Repairs to Building Repairs to Building A/c ...Dr.
[Including GST]
To Cash/Bank A/c

F. Journal entries of transactions on which GST (CGST and SGST or IGST) is paid under
Reverse Charge.
It means that the GST is not levied (charged) by the seller but is paid by the purchaser directly in
the Government Account and is allowed Input Credit of GST Paid under Reverse Charge.
S.No. Transaction Journal Entry
Payment of Fee to Lawyer, for use of Professional Fee A/c ...Dr.
copyright To Cash/Bank A/c
Input CGST A/c ...Dr.
Input SGST A/c ...Dr.
To Cash/Bank A/c