Question

How to set off gst in adjustments of financial statements 1?

Answer 1

hey!

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ŃŐŤÉ:-

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• Any IGST credit will first be applied to set off IGST and then CGST. Balance if any will be applied to setoff SGST.

Question:-

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1. So out of total input IGST of Rs. 24,000, firstly it will be completely setoff against IGST. Then balance Rs.8,000 against CGST.

• From the total Rs.40,000, only Rs. 13,280 is payable.

So the setoff entries will be:-

Setoff against CGST output

1 Output CGST ………………Dr. 9,360

To Input CGST A/c 1,360

To Input IGST A/c 8,000

2 Setoff against SGST output

Output SGST ………………Dr. 1,360

To Input SGST A/c 1,360

3 Setoff against IGST output

Output IGST ………………Dr. 16,000

To Input IGST A/c 16,000

4 Final payment

Output CGST A/c ……………Dr. 2,640

Output SGST A/c ……………Dr. 10,640

To Electronic Cash Ledger A/c

hope.help u!!

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