Tax Payable Entry | GST Payable Entry | GST Paid | Tax Paid

Check closing balances of tax accounts at end of month.

1. Create an account 'Tax Payable' under 'Current Liabilities'

2. Create Journal transaction as follows:

Debit:
SGST. 20000
CGST. 20000
IGST. 5000
Credit:
Tax Payable

The total amount (45000) is automatically computed. Save this Journal. All balances of tax accounts are transferred to Tax Payable account. This is the amount that you owe to the government.

3. When you pay this tax to the government, make an Expense entry:

Paid To:
Tax Payable

Paid From:
Bank Current Account