Categorizing GST for Accounting Purposes

The video tutorial explains the categorization of GST for accounting purposes, focusing on input and output GST. It provides examples of GST accounting for both intrastate and interstate transactions, detailing how to calculate GST and pass journal entries. The tutorial also covers GST on sales, illustrating the differences between intrastate and interstate sales. Finally, it introduces the concept of set off, where input GST is considered an asset and output GST a liability until they are offset.

What is the primary difference between input GST and output GST?

• Input GST is paid on purchases, while output GST is collected on sales.

• Input GST is applicable only for services, while output GST is for goods.

• Input GST is for interstate transactions, while output GST is for intrastate transactions.

• Input GST is collected on sales, while output GST is paid on purchases.

In an intrastate purchase, how is GST divided?

• Equally as SGST and IGST

• Entirely as CGST

• Equally as CGST and SGST

• Entirely as IGST

What is the total GST amount payable on a purchase of goods worth 5000 with an 18% tax rate in an intrastate transaction?

• 1800

• 900

• 450

• 1350

For an interstate purchase, which type of GST is applicable?

• Only CGST

• CGST and SGST

• Only SGST

• IGST

How is GST accounted for in an interstate sale?

• As output CGST and SGST

• As output IGST

• As input IGST

• As input CGST and SGST

What is the journal entry for sales without GST?

• Creditors account debit to sales account

• Sales account debit to creditors account

• Debtors account debit to sales account

• Sales account debit to debtors account

What is considered an asset in GST accounting until it is set off?

• Neither input nor output GST

• Input GST

• Both input and output GST

• Output GST