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InterviewSolution
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State whether the following statements are True or False with reason:GST paid on the purchase of goods Input tax A/c should be debited. |
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Answer» This statement is True. Reasons: GST is abbreviated from Goods and Service Tax. GST is levied by the government on the purchases of Goods and Services at a specified rate. Since it is imposed on purchases of goods and services, it increases its cost. GST is added to the purchase price. Purchases are always debited and hence GST i.e. Input tax account is also debited along with purchases. In the case of sales of goods and services, the output tax account is credited. |
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