GST TDS Accounting Entries
Here we will discuss GST TDS Accounting entries. Refer Video Lecture by CA Satbir Singh in Hindi
Suppose following invoice is issued by (A Ltd ) Supplier to recipient (ABC Public Sector undertaking / Govt public Sector undertaking) for Taxable Goods and Services on 01.10.2018
([ It is assumed that supply is inter state supply hence IGST will be charged and TDS @ 2% will be deducted under IGST, If it is intra state Supply then CGST and SGST will be charged and TDS will be deducted under CGST 1% and SGST 1% )
S.No | Invoice Particulars | Amount (Rs.) |
1 | Base value of Invoice | 10,00,000 |
2 | IGST Charged on Invoice @ 18% | 1,80,000 |
3 | Total Invoice Value | 11,80,000 |
Entry on Issue of Invoice
Following entry will be made in Books of A Ltd
Particulars | Dr | CR |
ABC Public Sector undertaking A/c Dr | 1180000 | |
To IGST Payable A/C | 180000 | |
To Outward Supply (Inter state) | 1000000 | |
( Being Invoice No… Dated…) |
Value on which GST TDS will be deducted
Rate and Type of TDS {Section 51(1) of CGST Act 2017 }
1. Interstate= 2% IGST
2. Intrastate= 1% CGST +1 %SGST
[ Note TDS shall be deducted on basic value excluding GST charged on the invoice for supply of goods, services or both. {Explanation to Section 51 (1)} ]
S.No | Invoice Particulars | Amount (Rs.) |
1 | Base value of Invoice | 10,00,000 |
2 | IGST Charged on Invoice | 1,80,000 |
3 | Total Invoice Value | 11,80,000 |
4 | TDS to be deducted by ABC Public Sector undertaking (Rs 10 Lacs X 2%) | 20,000 |
Entry in A Ltd books when TDS is deducted by ABC Public Sector undertaking
Particulars | Dr | CR |
CGST TDS Receivable Account A/c Dr | ||
UT/SGST TDS Receivable Account A/c Dr | ||
Or | ||
IGST TDS Receivable Account A/c Dr | 20000 | |
To ABC Public Sector undertaking A/c / Sundry Debtors Account | 20000 | |
( Being TDS deducted on Invoice No… Dated…) |
Acceptance of GST TDS on GST Portal by Supplier
When GST TDS Payment is made by Recipient and Accepted by the supplier ( A Ltd) , after end of the month then GST TDS will be credited into the Electronic Cash Ledger of supplier
Particulars | Dr | CR |
Electronic Cash Ledger A/c Dr | 20000 | |
To CGST TDS Receivable Account A/c | ||
To UT/SGST TDS Receivable Account A/c | ||
Or | ||
To IGST TDS Receivable Account A/c | 20000 | |
( Being TDS accetpted on GST Portal and credited into Electronic Cash Ledger on GST Portal against Invoice No ………… Dated ) |
Utilization of GST TDS by the Supplier
A Ltd will use the amount available in Electronic Cash Ledger to pay its GST Liabilities
Particulars | Dr | CR |
IGST Payable A/c Dr | 20000 | |
CGST Paybale A/c Dr ( if Any) | ||
SGST Payable A/c Dr (if Any) | ||
To Electronic Cash Ledger A/c | 20000 | |
( Being IGST Liability discharged from Electronic Cash Ledger) |
Important Point :
Always Tally your
- Electronic Cash Ledger as appearing in your Books of Accounts and on GST Portal
- Electronic Credit Ledger as appearing in your Books of Accounts and on GST Portal
- Electronic Liability Register as appearing in your Books of Accounts and on GST Portal
Other websites for Certification Courses like this one
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CBEC Circular No 65/39/2018-DOR : Guidelines for TDS by DDO under GST
Attention all DDO’S : TDS under GST w.e.f 01.10.2018 : Circular
Applicability of GST TDS on Inter State Supply ?
Separate GST registration for tax deductor required
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