What is Closing Balance under GST
This post explains about Closing Balance, relevance of closing balance in GST
Closing Balance
Closing Balance is 'The positive or negative amount remaining in an account at the conclusion of an accounting period that will be carried forward to the next period'. A closing balance is the amount remaining in an account within your chart of accounts, positive or negative, at the end of an accounting period or year end.
Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts. An "income summary" account may be used to show the balance between revenue and expenses, or they could be directly closed against retained earnings where dividend payments will be deducted from. This process is used to reset the balance of these temporary accounts to zero for the next accounting period.
Relevance of Closing Balance in GST:
Closing balance of the credit in the last returns:
The closing balance of the CENVAT credit/VAT in the last returns filed under the existing law can be taken as credit in electronic credit ledger. Such credit would be available only when returns for the previous last six months have been filed under the existing law. In order to claim this credit, declaration in form GST TRAN 1 is required to be furnished on the common portal within ninety days from the appointed day i.e. the day on which the GST law would come into force.
The information on Closing Balance is detailed above. Comment below your thoughts on Closing Balance
Learn Exports Imports Free, Click here
Click here to know GST rate of your goods or service
Power to collect statistics, Section 151 of CGST Act, 2017
Goods and services tax compliance rating, Sec 149 of CGST Act, 2017
Section 146 of CGST Act, 2017 Common Portal
Section 145 of CGST Act, 2017 Admissibility of micro films, facsimile copies of documents
Job work procedure, Section 143 of CGST Act, 2017
Section 139 of CGST Act, 2017 Migration of existing taxpayers
Section 135 Presumption of culpable mental state, CGST Act, 2017
Liability of officers and certain other persons, Section 133 of CGST Act, 2017
Sec 132 of CGST Act, 2017 Punishment for certain offences
Section 129 of CGST Act, 2017 Detention, seizure and release of goods and conveyances in transit
Section 124 Fine for failure to furnish statistics, CGST Act, 2017
Sec 122 Penalty for certain offences, CGST Act, 2017
Term Refunds Mechanism under GST
What is Refund to International Tourist under GST
Term Refund processing backend system under GST
What is Recovery by sale of movable or immovable property under GST
What is entry tax in lieu of octroi (ETILOO) under GST
Term RBI on T+1 basis under GST
Term Provisional Identification Number(PID)under GST
Term provisional assessment under GST
Migration of existing taxpayers under GST
How to get exemption of Sales Tax under exports.
What happens if overseas buyer not paid export bills discounted.
What happens if proper tracking of goods not effected in export import business?
What happens if your buyer rejects cargo? What are the major problems if consignee not taken delivery of cargo?
How to get export order from foreign buyers?
How to get RCMC from Export Promotion Councils
How to hide invoice value of original contract under high sea sale transactions
How to know the quality, quantity or contents of goods before import customs clearance
How to import to India from Democratic Republic of the Congo?
How to export from India to Democratic Republic of the Congo?
Documents required for Export from Democratic Republic of the Congo
Customs procedures for Democratic Republic of the Congo Export
Registration required to export from Democratic Republic of the Congo
Documents needed for Democratic Republic of the Congo import