We want to make provision for Audit Fee as on 31st March. However we shall get the bill for Audit Fee (Rs. 10,000 + GST 18% = 11,800/-) after 31st March. How should we pass the entries ?

1. You should make a provision of Audit Fee of Rs. 10,000/- on 31st March by passing the following entry under Transaction Type ‘T’ : –

Audit Fee : Dr. 10,000/-
Audit Fee Payable : Cr. 10,000/-

Note: When you pass the entry in trn. type ‘T’, it does not go in GST Return.

2. When you receive the bill for Rs. 11,800/- you may book the expenditure through GST Docs. Select “Yes” against A/c Head prompt to show A/c Head column. You should specify “Audit Fee Payable” in A/c Head column. The following entry will be generated: –

Audit Fee Payable : Dr. 10,000/-
CGST : Dr. 900/-
SGST : Dr. 900/-
XYZ & Co. (C.A.) : Cr. 11,800/-

Note: This entry will take part in GST Return and ITC of CGST / SGST shall be claimed.