Recording GST in your books requires separating the tax from the value of goods, and tracking input tax (on purchases) and output tax (on sales) so you can compute the net payable.
This guide shows the typical GST journal entries.
What is GST accounting entries?
On a purchase, you record the base value plus input CGST/SGST/IGST as receivable. On a sale, you record the base value plus output tax as payable. At period-end, input tax is set off against output tax and the balance is paid.
Separate ledgers for input and output CGST, SGST and IGST keep this clean.
Example
Frequently asked questions
How do I record input tax credit?
Book the input GST on purchases to separate input CGST/SGST/IGST ledgers, which are then set off against output tax.
What entry is passed when GST is paid?
Debit the output tax ledgers, credit the input tax ledgers, and credit bank for the net cash paid.