Question

journal entry for 'purchased furniture for ₹2000 plus CGST and SGST @6% each​

Answer 1

Answer:

Furniture A/c . . . Dr - 2,000

Input CGST A/c . . . Dr - 120

Input SGST A/c . . . Dr - 120

• To cash A/c - 2,240

( Being furniture purchased )

Explanation:

Given that furniture is purchased for ₹2000

Calculating GST:

CGST @ 6% = 6% of ₹2000 = ₹120

SGST @ 6% = 6% of ₹2000 = ₹120

Total amount payable = ₹2000 + ₹120 + ₹120 = ₹2240

Additional Information:-

Let's understand about the concept of GST!

The full form of GST is Goods and Services Tax. It is a type of indirect tax which is applicable when we consume goods or services. It is a value added tax. It has been replaced by many custom duties and additional taxes.

There are three categories of GST:-

• CGST - Central Goods and Services Tax (levied on intra-state (within state) sale)
• SGST - State Goods and Services Tax (levied on intra-state sales)
• IGST - Integrated Goods and Services Tax (levied on inter-state (outside state) sale)

Note- The total GST in an intra-state sales comprises of both CGST and SGST where CGST = SGST and CGST + SGST = GST.

Types of GST :-

The two types of GST is input GST and Output GST.

• The tax payable by the person who has consumed goods or services is called Input GST.
• The tax receivable by the person who has provided goods or services is called output GST.