Entry for Purchase and Purchase Return with and without GST

Last updated at Dec. 16, 2024 by

Entry for Purchase Return is opposite of Purchase
We know that Purchase Entry is
Purchase Dr
To Party
 
So purchase Return entry will be
Party Dr
To Purchase Return
(Instead of purchase Return Account, some people use Purchase Account which is also correct
 
Similarly, Entry for Purchase Return with GST will be
Party Dr
To Purchase Return
To Input GST
 
Note
Input GST will be credited ,not Output because when we purchase, we take ITC. If we return goods, we reduce this ITC and not pay output)

 

Lets understand this with the help of examples

purchase and purchase Return.jpg

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Transcript

Purchase Rs 100000 from A Purchase Dr To A 100000 100000 100000 5000 Purchase Interstate 5% Dr Input IGST 5% Dr To A 105000 100000 2500 Purchase Local 5% Dr Input CGST 2.5% Dr To A 105000 2500 Input SGST 2.5% Dr Without GST With IGST 5% With CGST SGST Purchase Return 20000 to A A Dr To Purchase Return/Purchase 20000 20000 21000 20000 A Dr To Purchase Return/Purchase Interstate 5% To Input IGST 5% 1000 21000 20000 A Dr To Purchase Return/Purchase Local 5% 500 To Input CGST 5% To Input SGST 5% 500 Entry for Purchase and Purchase Return

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.