GST TDS Accounting Entries in Supplier Books

GST TDS Accounting Entries

Here we will discuss GST TDS Accounting entries.

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)

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 Dr		180000
To  Outward Supply (Inter state)		1000000
( Being Invoice No… Dated…)

Vale on which GST TDS will be deducted

Rate and Type of TDS {Section 51(1)}

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) , 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 Dr
To UT/SGST TDS Receivable Account A/c Dr
Or
To IGST TDS Receivable Account A/c Dr		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)

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