You must perform the following steps before you manually enter GST in a sales or purchase journal. While recording a sales transaction, you can easily enter the discount rate or amount for each stock item. To consider discounts for GST sales, you have to create a discount ledger and then select it in the invoice. To Sales A/c. If provincial sales tax (PST) is charged in the place of supply, calculate the GST on the price without the PST. However, this has since been withdrawn vide Circular No. How to calculate the GST/HST. Sales journal entries should also reflect changes to accounts such as Cost of Goods Sold, Inventory, and Sales Tax Payable accounts. Rate. To consider discounts for GST Sales, you have to create a discount ledger and then select it in the invoice. GST Sales with Discount at the Item Level While recording a sales transaction, you can easily enter the discount rate or amount for each stock item. Debtors A/c _____Dr. CBIC Clarifications. To Sales A/c. To set the system up for manual GST entry in a sales and purchase journals. ... on Credit on 01/04/2020 with Packing Charges of Rs.500, Delivery Charges with Rs.300 and there is a Discount of Rs.400 on total Sales value . To CGST Payable A/c. To IGST Payable A/c. GST is calculated by considering the discount entered for each stock item after you enable the cash/ trade discount option in invoice. B. Inter-State Supplies. It does more than record the total money a business receives from the transaction. Under the GST law, the set-off of input credit is allowed in the following order:-GST Set Off Chart Discount allowed by a seller is discount received for the buyer. A sales journal entry records a cash or credit sale to a customer. 92/11/2019-GST dated 07.03.2019, CBIC had clarified on taxability of various offer of discounts / incentives, viz, free samples and gifts , buy one get one free offer, discounts including ‘buy more, save more’ offers , secondary discounts etc.. The following examples explain the use of journal entry for discount allowed in real-world events. An example of a sales discount is for the buyer to take a 1% discount in exchange for paying within 10 days of the invoice date, rather than the normal 30 days (also noted on an invoice as "1% 10/ Net 30" terms). If you know your place of supply and type of supply, you can use the GST/HST calculator to calculate the amount of GST/HST to charge. 3. Vide Circular No. To SGST Payable A/c. On the Purchases & Payables Setup page, choose the Allow GST Difference check box. For instance, let's assume that a company purchases goods and the supplier's sales invoice is $28,000 with terms of 1/10, net 30 . This is called Recording Sales of Composite Supply under GST (Expenses Apportioning). Repeat step 1 for the Sales & Receivables Setup page. Desktop HCL Infinity (GST-18%) 1 Nos. While posting a journal entry for discount allowed ... it ↓ reduces the actual amount to be received from sales. Some suppliers offer discounts of 1% or 2% from the sales invoice amount, if the invoice is paid in 10 days instead of the usual 30 days. Set Off of Input Credit Against Out Tax Liability of GST. Simplifying the entry with the help of modern rules of accounting. Name of Product: Qty. Value. Site best viewed at 1024 x 768 resolution in Internet Explorer 10+, Google Chrome 49+, Firefox 45+ and Safari 6+