Please refer to the refered subject. From 1st December'17, I have opted for composition, prior to that I was registered in regular.
A) How to make bill enteries purchased from a registered dealer from December,17
2) How to issue sales invoices.
If you have opted for composition scheme, you cannot take input tax credit and GST charged in your purchase invoices needs to be treated as expense.
You can book entire purchase invoice as purchase cost (including GST).
Entry should be:
Purchase A/c Dr. 1000
Party A/c Cr. 1000
For sales you have to create Bill of Supply.
Entry will be:
Party A/c Dr. 1000
Sales A/c Cr. 1000
At the end of month you need to pass tax entry.
Tax payable A/c Cr - 10
SGST A/c Dr - 5
CGST A/c Dr. - 5
Your tax will be expense for you.
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