GST
Goods and Services Tax, is a consumption tax levied on the supply of goods and
services in India. It replaced several indirect taxes that were previously levied by the
central and state governments. Here are some basic points about GST:
1. Types of GST: GST is categorized into several types based on the nature of
transactions:
CGST (Central Goods and Services Tax): Collected by the Central Government on
intra-state supplies of goods and services.
SGST (State Goods and Services Tax): Collected by the State Government on intra-
state supplies of goods and services.
IGST (Integrated Goods and Services Tax): Collected by the Central Government on
inter-state supplies of goods and services, and imports.
2. GST Rates: Goods and services are taxed at different rates under GST, which are
broadly classified into four slabs: 5%, 12%, 18%, and 28%. Some goods and services
are also taxed at 0% (Nil rate) or are exempted.
3. GST Council: The GST Council, chaired by the Union Finance Minister of India,
consists of finance ministers from states and is responsible for making
recommendations on GST rates, exemptions, and other related matters.
4. Benefits: GST aims to simplify the tax structure, eliminate the cascading effect of
taxes, promote ease of doing business, and create a unified national market.
5. Registration: Businesses with an annual turnover above a specified threshold
must register under GST. This threshold varies for different categories of states and
businesses.
6. Compliance: Registered businesses are required to file monthly, quarterly, or
annual GST returns, depending on their turnover.
7. Implementation: GST was implemented in India on July 1, 2017, replacing various
indirect taxes like VAT, service tax, excise duty, etc.
Understanding these basics can provide a foundational knowledge of how GST
functions in India's tax system.
GST (GOODS AND SERVICES TAX):-
1. INTER STATE
2. INTERA STATE
3. UNITED TERITORY
GST USES TRADE GOODS / SERVICE
1. INTER STATE (ONE STATE TO ANOTHERE STATE)
IGST (INTEGRATED GST) (STATE TO STATE)
DILIP PURCASHE PRINTER @20000 FROM (JITENDRA) MAHARASTRA 18% GST ON CREDIT
PRINTER A/C DR. 20000
IGST A. /C DR 3600
TO JITENDRA 23600
PAYMENT
JITENDRA A/C DR. 23600
CASH /BANK 23600
SALE ENTRY
-------
2. INTRA STATE (UNDER STATE)
CGST (CENTRAL GST) 50%
SGST (STATE GST) 50%
DILIP SALE PRINTER OF 21000 TO JITENDRA GST18% ON CREDIT
JITENDRA A/C DR
TO PRINTER A/C
TO CGST
TO SGST
3. UTGST
GST ENTRY IN TALLY
HSN CODE
GST OPTION ENABLE
GATEWAY OF TALLY > F11 > GST “YES”
FILL DETAIL
GSTIN NUMBER
SELECT STATE CAREFULLY
SALECT GST APPLY DATE CAREFULL
DATE RELATED PROBLEM AND WHEN GST NOT CALCULATE IN VOUCHER THAN APPLY
THIS STEPS
STEP 1:- VIEW GST APLICABLE DATE
STEP 2:- CHECK GST LEDGER
STEP 3:- PARTY LEDGER > GST NUMBER > AND STATE > REGISTER &UNREGISTER
STEP 4:- DATE OF VOUCHER
STEP 5:- CHECK GST DETAIL IN ITEM (TAXABLE, GST RATE)
STEP 6:- ALT + F2 AND CHECK FINANCIAL YEAR
GST LEDGER CREATE
CGST > UNDER (DUTIES & TAX) > TYPE OF DUTY (GST) > TAX TYPE (CENTRAL TAX)
SGST > UNDER (DUTIES & TAX) > TYPE OF DUTY (GST) > TAX TYPE (STATE TAX)
IGST > UNDER (DUTIES & TAX) > TYPE OF DUTY (GST) > TAX TYPE (INTEGRATED TAX)
PARTY LEDGERR:-
PURCHASE
PARTY NAME > SUNDRY CREDITOR > STATE > GSTIN NUMBER > SET/ALTER GST DETAIL
“YES”
SALE
PARTY NAME > SUNDRY DEBTOR> STATE > GSTIN NUMBER > SET/ALTER GST DETAIL
“YES”
ITEM CREATE:-
SET /ALTER GST DETAIL “YES”
AND FILL GST DETAIL
GST RATE ON ITEM AND GOODS
1. 0% GST (Nil Rate):
o Some essential items such as fresh fruits, vegetables, milk, grains, and
books.
2. 5% GST:
o Items such as packaged foods, footwear below Rs. 1000, cream,
skimmed milk powder, branded paneer, frozen vegetables, coffee,
tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines,
stents, lifeboats, and cashew nuts.
3. 12% GST:
o Items such as frozen meat products, butter, cheese, ghee, dry fruits in
packaged form, animal fat, sausage, fruit juices, namkeen, ketchup &
sauces, ayurvedic medicines, tooth powder, agarbatti, and cell
phones.
4. 18% GST:
o Items such as biscuits, flavoured refined sugar, pasta, cornflakes,
pastries and cakes, preserved vegetables, jams, sauces, soups, ice
cream, instant food mixes, mineral water, tissues, envelopes, tampons,
note books, steel products, printed circuits, camera, speakers and
monitors.
5. 28% GST:
o Items such as chewing gum, molasses, chocolate not containing
cocoa, waffles and wafers coated with chocolate, pan masala,
aerated water, paint, deodorants, shaving creams, after shave lotions,
hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater,
dishwasher, weighing machine, washing machine, ATM, vending
machines, vacuum cleaner, shavers, hair clippers, automobiles,
motorcycles, aircraft for personal use, yachts, and revolvers.
SERVICES
1. 5% GST:
o Transport services (railways, air transport), small restaurants (non-AC),
tour operator services, and economy class air travel.
2. 12% GST:
o Business class air ticket, hotels with tariff between Rs. 1,000 and Rs.
7,500, and restaurant services including AC and liquor serving
establishments.
3. 18% GST:
o Restaurants inside five-star hotels, telecom services, IT services, financial
services, room tariffs between Rs. 7,500 and Rs. 10,000, outdoor
catering, and work contracts.
4. 28% GST:
o Five-star hotels, cinema tickets, betting and gambling,
Purchase capital goods
Ledger of fixed assets fixed assets GST applicable Set GST details Capital
goods.
Supply goods and services in same invoice
Make item (Laptop)
Installation Charges (indirect income) Fill GST Details and select services.
Sales invoice with additional charges
Make freight ledger Indirect Exp.
Impact of discount in sales invoice
GST On Reverse Charge When purchase from unregister dealer
Purchase
Tax liability
Payment
Increase input tax credit
Treatment of Reverse Charge
On 31/5/23 Company availed legal Services from Advocate Rahul Jain amounting
of 55000
GOT F11 GST details.
Make Party ledger Party Name Creditor Registration type Unregistered/
Consumer
Legal Service ledger indirect Exp. GST applicable F12 set the option is
reverse charge applicable “Yes”
Now pass entry in purchase voucher
Legal Charges A/c dr 55000
To Rahul Jain A/c 55000
GOT Display more report Statutory report GST Other report Reverse
charge supplies Purchase from unregistered dealer.
Reverse Charge Supplies Alt + J Journal voucher Increase in tax liability
Purchase from unregistered dealer.
GST on Reverse charge A/c dr. (Current Assets) 9900
To CGST 4950
TO SGST 4950
(Being increase in tax liability)
55000
INCREASE IN TAX LIABILITY
Reverse Charge Supplies Alt + J Journal voucher Increase in tax liability
Purchase from unregistered dealer.
GST on Reverse charge A/c dr. (Current Assets) 9900
To CGST 4950
TO SGST 4950
(Being increase in tax liability)
Select rate and
taxable value
imp.
Increase input tax credit Journal voucher Alt + J Increase input tax credit
Purchase from unregistered dealer.
