a.) 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. You must have valid inward (purchase) tax invoices for taking input tax credit. I want to record the HST in the journal entry like this ... Debit office supplies (expense account) Debit HST taxes (expense account) To know more about URD purchases, click here . JOURNAL ENTRIES . So, try to make separate invoices … There is no defined rule of accounting for GST. Let us learn a few basic rules of GST before creating accounting entries for it. 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 On the General Journal Templates page, choose the Allow GST Difference check box for the relevant journal. 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 You can use either a purchase voucher , or a journal voucher , or a payment voucher to record the business expense. The GST accounts in MYOB should be considered as control accounts and you should not journal entries to them. Note : If it is a URD purchase of more than Rs. You must perform the following steps before you manually enter GST in a sales or purchase journal. 1. Adjustment entry Credit on URD purchases on which tax is to be paid on reverse charge Dr ITC CGST Ledger A/c Remember that the entry to GST Clearing results in a debit (decrease) in our overall GST liability to the Tax Office. Ensure to enable the expense ledger with GST. There is no concept of centralized registration under GST. They pick up the amount collected/paid from invoices/bills and recieve/spend money. Business-to-Business Sales (B2B) : When Company does the sale to a Registered customer, it is known as B2B sales. To do this: The corporation is registered for the GST/HST (although it doesn't make close to the $30,000 threshold I thought it was best to register) I purchased office supplies (in Ottawa, Ontario) so I paid HST (13%). A recap of the transaction shows the following journal entries will be posted when the purchase is recorded: To correct the tax code allocation, enter a new journal entry to: debit the GST paid on Purchases by $4000 using the CAP or GCA tax code, and; credit the GST Paid on Purchases by $4000 using the GST tax code. 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. 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. 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