There is no defined rule of accounting for GST. On the General Journal Templates page, choose the Allow GST Difference check box for the relevant journal. Remember that the entry to GST Clearing results in a debit (decrease) in our overall GST liability to the Tax Office. For eg- GST paid on purchase of motor car is not allowed except for certain persons. 1. You must have valid inward (purchase) tax invoices for taking input tax credit. To know more about URD purchases, click here . I want to record the HST in the journal entry like this ... Debit office supplies (expense account) Debit HST taxes (expense account) Note : If it is a URD purchase of more than Rs. a.) Record Purchase Returns in GST You can record purchase returns or de-escalation of the purchase value (both local and interstate) against an earlier purchase transaction using a debit note. 5,000, you need to pay GST and then claim ITC. Let us learn a few basic rules of GST before creating accounting entries for it. To set the system up for manual GST entry in a sales and purchase journals. To do this: Ensure to enable the expense ledger with GST. Another issue is that you want to decrease the GST paid not increase the amount collected as you will not be able to reconcile your GST collected. Business-to-Business Sales (B2B) : When Company does the sale to a Registered customer, it is known as B2B sales. For a person to whom ITC is not allowed, accounting entry will be Car A/c Dr 5,00,000 To Bank A/c 5,00,000 They pick up the amount collected/paid from invoices/bills and recieve/spend money. GST related Journal Entries -Examples Sales Entries. Please note that there are some rules and restrictions on input tax credit and above entries will be made only for those purchases on which ITC is allowed. How to Enter Fixed Assets Entry and take Input Credit effect in TallyERP.9?, GST Fixed Assets Entry in TallyERP.9?, Recording Purchases under GST - Local, Interstate, and Fixed Assets The GST accounts in MYOB should be considered as control accounts and you should not journal entries to them. You can use either a purchase voucher , or a journal voucher , or a payment voucher to record the business expense. Adjustment entry Credit on URD purchases on which tax is to be paid on reverse charge Dr ITC CGST Ledger A/c Basic of GST Accounting. So, try to make separate invoices … There is no concept of centralized registration under GST. You can use the voucher mode of credit note to record the escalation of purchase value. 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