Is GST charged to cost? The consumption tax is treated in several ways: 1. The consumption tax payable on the sales of goods is included in the "taxes and surcharges" account, directly included in the current profit and loss, not included in the cost. 2. Self produced and self used taxable consumer goods. If it is used for construction in progress, the consumption tax is included in the cost of the project. 3. If the entrusted processing materials that need to pay consumption tax are collected and used for direct sales, the consumption tax collected and paid by the entrusted party shall be recorded in the cost of "entrusted processing materials". If the entrusted processing materials are recovered and used for the continuous production of taxable consumer goods, and the deduction is allowed according to the regulations, the account of "taxes payable - consumption tax payable" shall be debited according to the consumption tax collected and paid by the entrusted party. Credit the "accounts payable", "bank deposit" and other subjects, and pay the consumption tax when the taxable consumer goods to be processed on a commission basis are produced and sold. 4. Import taxable consumer goods. The consumption tax payable in the import process shall be included in the cost of the material. According to the Provisional Regulations of the People's Republic of China on Consumption Tax: Article 1 Units and individuals that produce, process and import consumer goods specified in these Regulations within the territory of the People's Republic of China, as well as other units and individuals designated by the State Council to sell consumer goods specified in these Regulations, are taxpayers of consumption tax and shall pay consumption tax in accordance with these Regulations. Article 2 The taxable items and tax rates of consumption tax shall be subject to the Table of Consumption Tax Items and Tax Rates attached to these Regulations. The adjustment of consumption tax items and tax rates shall be decided by the State Council. Article 3 Where taxpayers concurrently engage in taxable consumer goods with different tax rates (hereinafter referred to as taxable consumer goods), the sales volume and sales volume of taxable consumer goods with different tax rates shall be accounted for separately; If the sales amount and sales quantity are not accounted for separately, or taxable consumer goods with different tax rates are sold as complete sets of consumer goods, the higher tax rate shall apply. Article 4 Taxable consumer goods produced by taxpayers shall be taxed at the time of sale by taxpayers. Taxable consumer goods produced by taxpayers for their own use and used for the continuous production of taxable consumer goods shall not be taxed; If it is used for other purposes, tax shall be paid when it is transferred for use. For taxable consumer goods processed on a commission basis, unless the commissioned party is an individual, the commissioned party shall collect and remit the tax when delivering the goods to the commissioned party. For taxable consumer goods processed on a commission basis and used by the entrusting party for the continuous production of taxable consumer goods, the tax paid is allowed to be deducted according to regulations. Imported taxable consumer goods shall be taxed at the time of import declaration.