GST & entries for GST &RCM

Question

Accepted Answer

GST refers to Goods and Services Tax. RCM stands for Reverse Charge Mechanism. Entries for GST and RCM are important for accounting purposes.

GST is a tax levied on the supply of goods and services.
Input tax credit can be claimed for GST paid on purchases.
Entries for GST include recording the tax collected and paid.
RCM is applicable when the supplier is not registered under GST.
RCM entries involve recording the tax liability and input tax credit.
Example: If a registered dealer purchases goods from an unregistered dealer, RCM applies and the registered dealer has to pay the tax.
Proper accounting for GST and RCM is crucial for compliance and avoiding penalties.

GST &amp; entries for GST &amp;RCM