When you buy goods or services worth at an 18% GST rate , your journal entry will look like this: Account Head Purchase A/c Input CGST (9%) Input SGST (9%) To Creditor / Bank A/c $11,800 Key Components
Ensure the correct code is mentioned to justify the 18% rate. 18 - Purchase GST Entrypdf
These are Assets (Current Assets). Since you can offset this tax against your future sales tax, it is not an expense. When you buy goods or services worth at