In 2011, introduction of Goods and Services Tax (GST) was mentioned by the Union Finance Minister in his budget speech, but its implementation was delayed due to lack of consensus among the states and center on aspects relating to limiting fiscal autonomy of the states. However, it is expected to be implemented most probably by 2016. As soon as it is implemented, there would be a requirement of proper accounting system. But how far are we prepared towards that end from an accounting point of view? This paper focuses on those aspects. In short, GST becomes payable as soon as there is a transaction of goods or services. But how it can be recorded precisely without the help of any prescribed register is to be carefully examined. Moreover, the idea of reverse taxation further adds to the complication. As GST has not yet been introduced, it is not clear what would be the exact nuances of law in this regard. However, in this paper, the service tax rules and central excise rules have been taken as the base for depicting the transaction