GST accounting entries: sales, purchases and monthly set-off
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Updated 03 Oct 2026
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AI summary
How GST moves through your books, from the invoice to the GST payment.
6 sections
Ledgers you need (Alt+L)
| Ledger | Group |
|---|---|
| Output CGST, Output SGST, Output IGST | Duties & Taxes |
| Input CGST, Input SGST, Input IGST | Duties & Taxes (or Current Assets) |
| Electronic Cash Ledger | Current Assets (optional, for advance GST deposits) |
Sale within the state: ₹1,00,000 + 18% GST (F8)
Customer A/c Dr 1,18,000
To Sales A/c 1,00,000
To Output CGST A/c 9,000
To Output SGST A/c 9,000For a sale to another state, credit Output IGST ₹18,000 instead.
Purchase within the state: ₹60,000 + 18% GST (F9)
Purchase A/c Dr 60,000
Input CGST A/c Dr 5,400
Input SGST A/c Dr 5,400
To Supplier A/c 70,800Month-end set-off (F7)
Use input credit against output tax in the legal order: IGST credit first, then CGST and SGST (see GST Fundamentals).
Output CGST A/c Dr 5,400
Output SGST A/c Dr 5,400
To Input CGST A/c 5,400
To Input SGST A/c 5,400Pay the balance by the GSTR-3B due date (F5)
Output CGST A/c Dr 3,600
Output SGST A/c Dr 3,600
To Bank A/c 7,200Check
After the set-off and payment, Output and Input ledgers should show nil, or only credit carried forward. The balance must match the GSTR-3B figures. Any gap means a missed or wrong entry.
PreviousTDS accounting entries for payer and receiver Next in Journal Entry Library Reverse charge (RCM) entries
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