Question

Mr. Jobin is a registered dealer under GST in Noida. He deals with the products like Bamboo furniture which comes under the GST slab rate of 18%. He purchase the products from the local manufacturer as well as outside state. Also, his sales transaction mostly done outside the state. During the month of August 2020, he managed to do the following transaction for which journal entry are required to pass and compute his tax liability which he needs to pay after set off/adjustments.
Purchase Bamboo furniture from Mr. Tyagi who is a local manufacturer for Rs. 5,00,000 on 1.08.2020
Purchase Bamboo furniture from Mr. Sharma who is a manufacturer in Gurgaon for Rs. 2,00,000 on 3.08.2020. (IGST is applicable)
Sold Bamboo furniture for Rs. 7,00,000 to local customer on 6.08.2020
Sold Bamboo furniture to dealer in Chennai for Rs. 2,50,000 on 10.08.2020
He has paid legal consulation fee to CA Arun Tripathi Rs. 40,000 on 15.08.2020.
He paid telephone bill of Rs. 4000 on 27.08.2020
The GST rate applicable to Bamboo furniture is 18% and the same for the packaging material. Moreover, for the professional fee and utility bills also the rate is 18%.

Pass the necessary journal entry including the entry of set off and tax payment (if any). Compute the tax liability and show the set off and adjustment of tax in the form of table.

Please do it professionally

Answer 1

Transaction Summary:
Date	Transaction	Amount	CGST	SGST	IGST	Total Including GST
01.08.2020	Purchase	500,000	45,000	45,000		590,000
03.08.2020	Purchase	200,000			36,000	236,000
06.08.2020	Sales	700,000	63,000	63,000		826,000
10.08.2020	Sales	250,000			45,000	295,000
15.08.2020	Legal Constitution Fess	40,000	3,600	3,600		47,200
27.08.2020	Telephone Bill	4,000	360	360		4,720

Assumptions:

a) Telephone charges for Mr. Jobin so no ITC available

b) Invoice is received for legal consultation

Journal Entries:
01.08.2020	Purchase AC		5,00,000
	CGST			45,000
	SGST			45,000
		To Mr. Tyagi Account	5,90,000
	(Being Goods purchase from Mr. Tyagi on credit basis)

03.08.2020	Purchase AC		2,00,000
	IGST			36,000
		To Sharma Account
	(Being Goods purchase from Mr. Sharma on credit basis)

06.08.2020	Cash AC			8,26,000
		To CGST			63,000
		To SGST			63,000
		To Sales			7,00,000
	(Being Sales made to local customer)

10.08.2020	Cash AC			2,95,000
		To IGST			45,000
		To Sales			2,50,000
	(Being Sales made to customer)

15.08.2020	Legal Charges		40,000
	CGST			3,600
	SGST			3,600
		To Cash			47,200
	(Being legal charges paid to CA Arun Tripathi)

27.08.2020	Telephone Bill		4,000
	CGST			360
	SGST			360
		To Cash			4,720
	(Being Telephone bill paid)

Date	Transaction	Tax Impact	CGST	SGST	IGST
01.08.2020	Purchase	Paid	45,000	45,000
03.08.2020	Purchase	Paid			36,000
06.08.2020	Sales	Collected	63,000	63,000
10.08.2020	Sales	Collected			45,000
15.08.2020	Legal Constitution Fess	Paid	3,600	3,600
Net Amount Payable to Gov(Collected-Paid)	14,400	14,400	9,000

CGST			14400
SGST			14,400
IGST			9,000
	To Cash			37,800
(Being Tax paid to government)