Page 82 - ISCDEBK-XI

12.6 Double Entry Book Keeping—ISC XI

D. Journal entries when Output GST is reversed, i.e., cancelled:

S.No. Transaction and Explanation Journal Entry
1. Sales Return (a) For intra-state Credit Sale
Explanation: Output GST, i.e., GST Charged Sales Return A/c ...Dr.
on sale is cancelled, i.e., reversed. Goods Output CGST A/c ...Dr.
were sold within the state, i.e., Intra-state, Output SGST A/c ...Dr.
both CGST and SGST were charged and To Debtor’s A/c
credited to Output CGST Account and (b) For intra-state Cash Sale
Input SGST Account, which now are Sales Return A/c ...Dr.
reversed. Goods were sold outside the Output CGST A/c ...Dr.
state, i.e., Inter-state, IGST was charged Output SGST A/c ...Dr.
and credited to Output IGST Account, To Cash/Bank A/c
which now is reversed.
(c) For inter-state Credit Sale
Sales Return A/c ...Dr.
Output IGST A/c ...Dr.
To Debtor’s A/c
(d) For inter-state Cash Sale
Sales Return A/c ...Dr.
Output IGST A/c ...Dr.
To Cash/Bank A/c
2. Cash Discount Allowed (a) If Goods and/or Services or Both were intra-state
Explanation: GST is levied on Taxable Cash A/c/Bank A/c ...Dr.
Value which is after all discounts including Discount Allowed A/c ...Dr.
Cash Discount. [On amount of Cash Discount]
Output CGST A/c ...Dr.
Output SGST A/c ...Dr.
To Sundry Debtors
(b) If Goods and/or Services or Both were inter-state
Cash A/c/Bank A/c ...Dr.
Discount Allowed A/c ...Dr.
[On amount of Cash Discount]
Output IGST A/c ...Dr.
To Sundry Debtors
3. Rebate Allowed (a) If Goods and/or Services or Both are intra-state
Explanation: Rebate is reduction in Sale Rebate A/c ...Dr.
Value allowed because of reasons other Output CGST A/c ...Dr.
than for which Trade Discount is allowed. Output SGST A/c ...Dr.
[GST is reversed on amount of Rebate]
To Sundry Debtors
(b) If Goods and/or Services or Both are inter-state
Rebate A/c ...Dr.
Output IGST A/c ...Dr.
[GST is reversed on amount of Rebate]
To Sundry Debtors