B.com 4 th sem. computerised accounting system ( gst )
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- Computerized accounting systems use computers to process financial transactions according to GAAP and produce customized reports for users. This provides a modern alternative to manual accounting. - GST is an indirect tax imposed by the Indian government on supply of goods and services. There are various types of GST - IGST, CGST, SGST, UTGST - based on whether the supply is interstate or intrastate. - GST rates range from 0% to 28% across various goods and services. Taxable transactions and related input and output taxes affect the basic accounting equation of assets = liabilities + capital in the GST regime.
B.com 4 th sem. computerised accounting system ( gst )
- 1. TEACHER – PROF. NEETU BHATIA (MANOCHA) MCA, M.PHIL, PHD PPT FOR CLASS – B.COM 4TH SEM SUBJECT – COMPUTERISED ACCOUNTING SYSTEM TOPIC – COMPUTERISED TAX LIABILITY CALCULATION
- 2. Computerized Accounting System Computerized Accounting System is a modern substitute for manual accounting. Accounting as a subject has become so complex that it cannot be handled easily with pen & paper format. The computerized accounting system is an accounting data system that processes the financial transactions and transactions as per GAAP (Generally Accepted Accounting Principles) to produce reports as per user demands.
- 3. Goods and Service Tax (GST) GST stands for Goods and Service Tax. GST is an indirect tax imposed on the supply of goods and services by the state and central government. The GST has been defined as” a tax on supply of goods or services or both, except supply of alcoholic liquor for human consumption and petroleum products”. In India, the Goods and Service Tax (GST) came into force on 1stJuly 2017. It extends to the whole of India. GST is governed by 4 Central Acts and 29 state Acts. Most of the existing indirect taxes levied by the central and state governments have been subsumed in GST.
- 4. There are many types of GST: IGST CGST SGST UTGST
- 5. IGST- IGST means Integrated Goods and Service Tax imposed on interstate supply of goods or services and on import of goods or services or both. CGST - CGST means Central goods and Services Tax; It is imposed on intra-state supply of goods or services or both. It is the portion of tax on intra state supply charged by Central Government.
- 6. SGST – SGST means State goods and Service Tax. SGST is imposed on intra-state supply of goods or services or both. . It is the portion of tax on intra state supply charged by State Government. UTGST- UTGST means Union Territory Goods and Service Tax, imposed on supply of goods or services within a union territory. It is the portion of tax on intra state supply charged by a Union Territory Government
- 7. GST Rates: GST council recommended for a 5 slab tax rates for the supply of goods and services. The items falling under these slabs can be revised by GST council time to time. The present GST Rates are 0%, 5%, 12%, 18% and 28%. A list of GST rates and a few items falling under these rates are given below. 0% 5% 12% 18% 28% Buttermilk Dried fish Meat of bovine Malt, whether or Chewing gum animals not roasted Curd Crab meat Meat of goats Extracts, of neem Cocoa frozen butter, fat Eggs Concentrated Meat & edible Margarine Chocolate & milk and cream offal of poultry (excluding liquid chocolate margarine) products
- 8. 0% 5% 12% 18% 28% nuts Onion Coffee Raw cashew Glucose Custard powder Garlic Green tea Almond (in Pasta Paints and shell; dried) varnishes Cauliflower Black pepper Guavas, Vegetables, fruit, Mustard flour, mangoes and nuts and other meal, prepared vinegar or acetic Mixed Chilly powder Dried grapes Synthetic vinegar Smoking vegetables tobacco Green pepper Vanilla powder Wheat starch Instant tea Cement Coconut Groats and Fish liver oils Cashew nut, Preparations meal, of wheat and their roasted, saltdd or for use on the Dates Seeds of cumin Fruit juices Soya sauce Talcum
- 9. Service Rate of tax Transport of goods by rail 5% Transport of passengers by rail (other than sleeper class) 5% Services of goods transport agency in relation to 5% transportation of used household goods for personal use. Transport of passengers by air in economy class 5% Supply of tour operators’ services 5% Transport of passengers by air in other than economy class 12% Supply of Food/drinks in restaurant not having facility of 12% Services by way of admission or access to circus, Indian 18% classical dance including folk dance, theatrical performance, drama GST rates of services
- 10. Input Tax and Out Put Tax The taxable event under GST is Supply of goods or Services or both. Supply may be Inward supply and Outward supply. The GST paid on inward supply is called Input tax. In other words the GST on purchase of goods and services is known as Input Tax. Input tax shall be specifically named as Input IGST or Input CGST or Input SGST. The tax collected from outward supply of goods is called Output Tax. In other words the GST on sale of goods and services is known as Output Tax. The output tax may be specifically named as Output IGST/Output CGST/Output SGST Taxes Output CGST Output SGST Output IGST Input CGST X Input SGST X Input IGST
- 11. Identification of Debit and Credit aspects in GST regime The accounts to be debited and credited for business transactions with GST is explained in the following illustration Illustration 1 Identify the debit and credit aspects of the following transactions . Ramu started business with cash Rs. 22000 Purchased furniture for cash from Tamilnadu Rs. 7000, IGST 350 Sold goods on credit to Ravi Rs. 4000, CGST Rs.100 and SGST Rs.100 Received rent Rs.500 5.Paid insurance Rs. 750 Received cash from Ravi Rs.4200
- 12. Aspects Type of Increase/ Dr./Cr. Transactions Account Decrease 1. Started business 1.Cash Asset Increase Dr. with cash 2.Capital Capital Increase Cr. 2.Purchased furniture 1.Furniture Asset Increase Dr. 2 Input IGST Asset Increase Dr. 3.Cash Asset Decrease Cr. 3.Goods sold to Ravi 1.Ravi (Debtors) Asset Increase Dr. 2. Local Sales Income Increase Cr. 3.Out put CGST Liability Increase Cr. 4.Output SGST Liability Increase Cr. 4.Received rent 1.Cash Asset Increase Dr. 2.Rent Income Increase Cr. 5.Paid insurance 1.Insuranc Expense Increase Dr. premium 2.Cash Asset Decrease Cr.
- 13. Accounting Equation in GST regime Various Input and Output taxes affect basic accounting equation. Input taxes are considered as current assets and output taxes are considered as current liabilities. Let’s examine the following illustration. Illustration I: Prepare a statement proving the accounting equation from the following transactions. •Local purchase on credit from Global Furniture 40 Table @ Rs.2000, CGST-2. 5% & SGST-2.5% •Bought machinery for Rs. 60,000 •Purchased postal stamp for Rs. 200 •Paid salary Rs.8000 •Received commission Rs.7200(after deducting 10%TDS)
- 14. Illustration 2: Samudra Traders is a registered dealer at Kochi. Their transactions during the month of November 2017 are given below Nov 1. Purchased from Lulu mal Kochi, goods for cash worth Rs.80,000/- GST 12% 2. Credit purchases from Almas traders Aluva 5% GST goods worth Rs.1,00,000/- 4. Cash sales to Mr.Basith 12% GST goods for Rs.25000/- 5. Returned to Almas goods worth Rs.10000/- 6. Sold on credit to Anna traders Chennai,5% GST goods for Rs.60,000/-
- 15. 9. Credit purchases from Gowda&co, Mysore,18%GST goods for Rs.140000/- 12. Sold for cheque goods worth Rs.40000/- GST12% 15. Bought 18% furniture from Nilambur furnitures for cash Rs.40000/- 18.Recieved goods returned by Anna Traders worth Rs.8000/- 20.Purchased Machinary fom Coimbatore for Rs.120000/- GST@12%,Paid by cheque
- 16. Date Particulars LF Debit Credit 2017Nov1 Local Purchase a/c 80000 Input CGST a/c 4800 Input SGST a/c 4800 Cash a/c 89600 2 Local Purchase a/c 100000 Input CGST a/c 2500 Input SGST a/c 2500 Almas traders a/c 125000 4 Cash a/c 28000 Local Sales a/c 25000 Output CGST a/c 1500 Output SGST A/C 1500 SAMUDRA TRADERS JOURNAL
- 17. 5 Almas traders a/c 10500 Local Purchase a/c 10000 Input CGST a/c 250 Input SGST a/c 250 6 Anna traders a/c 63000 Interstate Sales a/c 60000 Output IGST a/c 3000 9 Interstate Purchase a/c 140000 Input IGST a/c 25200 Gowda&co, a/c 165200 SAMUDRA TRADERS JOURNAL
- 18. SAMUDRA TRADERS JOURNAL 12 Bank a/c 44800 Local Sales a/c 40000 Output CGST a/c 2400 Output SGST A/C 2400 15 Furniture a/c 40000 Input CGST a/c 3600 Input SGST a/c 3600 Cash a/c 47600 18 Interstate Sales a/c 8000 Output IGST a/c 400 Anna traders a/c 8400 20 Machinery a/c 120000 Input IGST a/c 14400 Bank a/c 134400
- 19. THANK YOU