{"id":7014,"date":"2025-08-12T10:02:53","date_gmt":"2025-08-12T10:02:53","guid":{"rendered":"https:\/\/margbooks.com\/blogs\/?p=7014"},"modified":"2026-01-17T06:15:00","modified_gmt":"2026-01-17T06:15:00","slug":"how-to-prepare-a-gst-journal-entry-for-input-and-output-gst","status":"publish","type":"post","link":"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/","title":{"rendered":"How to Prepare a GST Journal Entry for Input and Output GST?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1c6e70;color:#1c6e70\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1c6e70;color:#1c6e70\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#What_is_a_GST_Journal_Entry\" title=\"What is a GST Journal Entry?\">What is a GST Journal Entry?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#Why_Are_GST_Journal_Entries_Important\" title=\"Why Are GST Journal Entries Important?\">Why Are GST Journal Entries Important?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#Input_GST_vs_Output_GST_%E2%80%93_Know_the_Difference\" title=\"Input GST vs Output GST \u2013 Know the Difference\">Input GST vs Output GST \u2013 Know the Difference<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#How_to_Record_GST_Journal_Entry_for_Purchases_Input_GST\" title=\"How to Record GST Journal Entry for Purchases (Input GST)\">How to Record GST Journal Entry for Purchases (Input GST)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#How_to_Record_GST_Journal_Entry_for_Sales_Output_GST\" title=\"How to Record GST Journal Entry for Sales (Output GST)\">How to Record GST Journal Entry for Sales (Output GST)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#Adjusting_Input_GST_Against_Output_GST\" title=\"Adjusting Input GST Against Output GST\">Adjusting Input GST Against Output GST<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#Manual_Entries_vs_GST_Billing_Software\" title=\"Manual Entries vs GST Billing Software\">Manual Entries vs GST Billing Software<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#Why_Choose_MargBooks_for_GST_Accounting\" title=\"Why Choose MargBooks for GST Accounting?\">Why Choose MargBooks for GST Accounting?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#Key_features_include\" title=\"Key features include:\">Key features include:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/margbooks.com\/blogs\/how-to-prepare-a-gst-journal-entry-for-input-and-output-gst\/#Final_Thoughts\" title=\"Final Thoughts\">Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>GST, or Goods and Services Tax, has revolutionised the way businesses in India handle taxation. But for many, the real challenge begins when it&#8217;s time to prepare a GST Journal Entry. If you\u2019re managing accounts manually or even using outdated systems, recording GST correctly can feel overwhelming.<\/p>\n\n\n\n<p>In this guide, we\u2019ll walk you through everything you need to know about recording input GST and output GST, along with practical examples and tips. Plus, we\u2019ll show how tools such as online billing software and platforms, MargBooks, can simplify the entire process.<\/p>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get GST Billing Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_GST_Journal_Entry\"><\/span><strong>What is a GST Journal Entry?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A GST Journal Entry is an accounting record that helps businesses track the tax they\u2019ve paid on purchases (input GST) and the tax they\u2019ve collected from sales (output GST). These entries ensure that you&#8217;re compliant with GST laws and are ready for return filing without last-minute confusion.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Are_GST_Journal_Entries_Important\"><\/span><strong>Why Are GST Journal Entries Important?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Maintaining accurate GST entries is not just good accounting practice with <a href=\"https:\/\/margbooks.com\/billing-software.html\">online billing software<\/a>, it\u2019s essential for smooth business operations. Here\u2019s why:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Helps track GST liabilities and input credits<br><\/li>\n\n\n\n<li>Ensures transparency in accounting records<br><\/li>\n\n\n\n<li>Prepares you for audits and return filings<br><\/li>\n\n\n\n<li>Minimises the risk of penalties for non-compliance<br><\/li>\n\n\n\n<li>Keeps your books organised and reliable<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Input_GST_vs_Output_GST_%E2%80%93_Know_the_Difference\"><\/span><strong>Input GST vs Output GST \u2013 Know the Difference<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before diving into entries, let\u2019s clarify these two key terms:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Input GST<\/strong>: This is the tax you pay on business purchases. You\u2019re eligible to claim this amount as Input Tax Credit (ITC).<br><\/li>\n\n\n\n<li><strong>Output GST<\/strong>: This is the tax you charge customers when you sell goods or services.<\/li>\n<\/ul>\n\n\n\n<p>The beauty of GST is that you can offset the tax paid (input) against the tax collected (output) and pay only the difference.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Record_GST_Journal_Entry_for_Purchases_Input_GST\"><\/span><strong>How to Record GST Journal Entry for Purchases (Input GST)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Let\u2019s say you purchase goods worth \u20b91,00,000 and the GST applicable is 18% (divided into 9% CGST and 9% SGST). Here&#8217;s how to pass the journal entry:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debit Purchase Account with \u20b91,00,000<br><\/li>\n\n\n\n<li>Debit Input CGST Account with \u20b99,000<br><\/li>\n\n\n\n<li>Debit Input SGST Account with \u20b99,000<br><\/li>\n\n\n\n<li>Credit Supplier or Creditor Account with \u20b91,18,000<\/li>\n<\/ul>\n\n\n\n<p>In case of inter-state purchase, where IGST is applicable at 18%, you\u2019d:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debit Purchase Account with \u20b91,00,000<br><\/li>\n\n\n\n<li>Debit Input IGST Account with \u20b918,000<br><\/li>\n\n\n\n<li>Credit Supplier with \u20b91,18,000<\/li>\n<\/ul>\n\n\n\n<p>This entry captures your total purchase and breaks down the GST component for future credit claims.<\/p>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get Online Billing Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Record_GST_Journal_Entry_for_Sales_Output_GST\"><\/span><strong>How to Record GST Journal Entry for Sales (Output GST)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now, suppose you sell products worth \u20b92,00,000 and charge 18% GST. The entry would look like this:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debit Customer (Debtor) Account with \u20b92,36,000<br><\/li>\n\n\n\n<li>Credit Sales Account with \u20b92,00,000<br><\/li>\n\n\n\n<li>Credit Output CGST Account with \u20b918,000<br><\/li>\n\n\n\n<li>Credit Output SGST Account with \u20b918,000<\/li>\n<\/ul>\n\n\n\n<p>If you\u2019re making an inter-state sale and IGST applies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debit Customer Account with \u20b92,36,000<br><\/li>\n\n\n\n<li>Credit Sales Account with \u20b92,00,000<br><\/li>\n\n\n\n<li>Credit Output IGST Account with \u20b936,000<\/li>\n<\/ul>\n\n\n\n<p>This reflects your revenue and the GST you owe to the government.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Adjusting_Input_GST_Against_Output_GST\"><\/span><strong>Adjusting Input GST Against Output GST<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>At the end of your GST filing period (usually monthly), you\u2019ll need to adjust the GST paid on purchases against the GST collected on sales. This is where the Input Tax Credit (ITC) mechanism kicks in.<\/p>\n\n\n\n<p>Let\u2019s assume:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Input GST = \u20b918,000<br><\/li>\n\n\n\n<li>Output GST = \u20b936,000<br><\/li>\n<\/ul>\n\n\n\n<p>To adjust:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debit Output CGST and SGST Accounts with \u20b99,000 each<br><\/li>\n\n\n\n<li>Credit Input CGST and SGST Accounts with \u20b99,000 each<br><\/li>\n<\/ul>\n\n\n\n<p>The remaining GST payable is:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Debit Output CGST and SGST Accounts with \u20b99,000 each<br><\/li>\n\n\n\n<li>Credit Bank Account with \u20b918,000<br><\/li>\n<\/ul>\n\n\n\n<p>This entry clears your GST liability for the period by paying the balance after claiming input credit.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Manual_Entries_vs_GST_Billing_Software\"><\/span><strong>Manual Entries vs GST Billing Software<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Preparing GST journal entries manually works if you have very few transactions. But as your business grows, so do the invoices, and errors.<\/p>\n\n\n\n<p>Here\u2019s why switching to <a href=\"https:\/\/margbooks.com\/gst-billing-software.html\"><strong>GST billing software<\/strong><\/a>, MargBooks, is a smart move:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Automatically calculates and records input and output GST<br><\/li>\n\n\n\n<li>Reduces the risk of incorrect entries or tax mismatches<br><\/li>\n\n\n\n<li>Generates GST-compliant invoices with just a few clicks<br><\/li>\n\n\n\n<li>Prepares GSTR reports for timely filing<br><\/li>\n\n\n\n<li>Tracks your input tax credit in real-time<br><\/li>\n\n\n\n<li>Works seamlessly as an online billing software, accessible anywhere<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Choose_MargBooks_for_GST_Accounting\"><\/span><strong>Why Choose MargBooks for GST Accounting?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>MargBooks is one of India\u2019s leading online billing software solutions tailored for GST compliance. Whether you\u2019re running a retail shop, wholesale business, or a service-based setup, MargBooks simplifies all your accounting and tax needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_features_include\"><\/span><strong>Key features include:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Auto-entry of GST on every purchase and sale<br><\/li>\n\n\n\n<li>Built-in HSN\/SAC code library<br><\/li>\n\n\n\n<li>One-click GSTR-1, GSTR-3B, and GSTR-2A\/2B reports<br><\/li>\n\n\n\n<li>Smart ITC tracking and adjustment<br><\/li>\n\n\n\n<li>Multi-user cloud access<br><\/li>\n\n\n\n<li>Intuitive dashboard for real-time tax insights<br><\/li>\n<\/ul>\n\n\n\n<p>No more worrying about late fees or clerical errors. MargBooks does the heavy lifting so you can focus on running your business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><strong>Final Thoughts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Getting your GST journal entries right is more than just an accounting task, it\u2019s the foundation for smooth tax compliance. Whether you\u2019re managing a small startup or a growing enterprise, accurate entries for input and output GST are non-negotiable.<\/p>\n\n\n\n<p>While manual entries are doable, they\u2019re not scalable or foolproof. That\u2019s where a reliable GST billing software, <a href=\"https:\/\/margbooks.com\/\">MargBooks<\/a>, truly shines. With automation, real-time data, and hassle-free compliance features, MargBooks helps you stay ahead of deadlines and avoid costly mistakes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>GST, or Goods and Services Tax, has revolutionised the way businesses in India handle taxation. But for many, the real challenge begins when it&#8217;s time to prepare a GST Journal Entry. If you\u2019re managing accounts manually or even using outdated systems, recording GST correctly can feel overwhelming. In this guide, we\u2019ll walk you through everything [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8976,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[38],"tags":[86,1093,54,201],"class_list":["post-7014","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","tag-gst-billing-software","tag-gst-compliance","tag-online-accounting-software","tag-online-billing-software"],"blocksy_meta":[],"blog_post_layout_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal-150x150.jpg",150,150,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal.jpg",1200,576,false]},"categories_names":{"38":{"name":"GST","link":"https:\/\/margbooks.com\/blogs\/category\/gst\/"}},"tags_names":{"86":{"name":"gst billing software","link":"https:\/\/margbooks.com\/blogs\/tag\/gst-billing-software\/"},"1093":{"name":"GST compliance","link":"https:\/\/margbooks.com\/blogs\/tag\/gst-compliance\/"},"54":{"name":"online accounting software","link":"https:\/\/margbooks.com\/blogs\/tag\/online-accounting-software\/"},"201":{"name":"online billing software","link":"https:\/\/margbooks.com\/blogs\/tag\/online-billing-software\/"}},"comments_number":"0","wpmagazine_modules_lite_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal-150x150.jpg",150,150,true],"cvmm-medium":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal-300x300.jpg",300,300,true],"cvmm-medium-plus":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal-305x207.jpg",305,207,true],"cvmm-portrait":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal-400x576.jpg",400,576,true],"cvmm-medium-square":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal-600x576.jpg",600,576,true],"cvmm-large":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal-1024x576.jpg",1024,576,true],"cvmm-small":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal-130x95.jpg",130,95,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/Journal.jpg",1200,576,false]},"_links":{"self":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/7014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/comments?post=7014"}],"version-history":[{"count":2,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/7014\/revisions"}],"predecessor-version":[{"id":7018,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/7014\/revisions\/7018"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media\/8976"}],"wp:attachment":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media?parent=7014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/categories?post=7014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/tags?post=7014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}