We have sold our old car for Rs. 3,00,000/-. The written down value of the said car is Rs. 2,50,000/-. We are supposed to pay GST on Rs. 50,000/- @ 18%. How should we pass the voucher entry ?

To pass this entry through GST Docs, you need to open two stock items in stock master, namely: –
1. Used Car (Sale)
2. Used Car (Profit Element)

In GST info window, check the “Advanced Columns” check box and mention the Car account in the column “Outward Supplies / Sale A/c Head” against both the above items.

You should mention ‘GST 18%’ against the item “Used Car (Profit Element)” and ‘Exempted’ against the item “Used Car (Sale)”.

When you make the sale document, you should enter the amounts as under: –
1. Car @ Rs. 2,50,000/-
2. Car (Profit Element) @ Rs. 50,000/-

Following entry will be generated: –
XYZ & Co. : Dr. 3,59,000/-
Car Account : Cr. 2,50,000/-
Car Account : Cr. 50,000/-
CGST : Cr. 4,500/-
SGST : Cr. 4,500/-

You may see the voucher by pressing Ctrl+F5. You will observe that ‘Exempted’ GST Class is attached with the row in which Rs. 2,50,000/- is credited and ‘GST 18%’ class is attached with the row in which Rs. 50,000/- is credited.

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