Someone tweeted me, "Can QuickBooks' Profit and Loss report show the Income includes the GST
GST is a liability nature account; it should be in
the Balance Sheet report under Other Current Liability account type.
If you are not a GST Register Company, you should
not charge your customer GST and keep it as an income.
When there is a GST charged on an invoice the double entry is:
Dr. Accounts Receivable (in Balance Sheet report)
Cr. Sales (in Profit and Loss report)
Cr. Tax Payable (GST) (in Balance Sheet report)
In some cases, when the company is not a GST
Register Company, they may like to class the GST incurred as a GST expense instead
of lump the GST amount into Cost of Goods Sold account. In this case, the
accountant will be able to find out how much Input Tax they have
incurred for the period.