GST in Tally Prime

GST

(Goods and Service Tax)

GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017.

                     In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India.

GST is one indirect tax for the entire country.

 Old Tax Method

Components of GST-

There are 5 taxes applicable under this system-

CGST: 

Collected by the Central Government on an intra-state sale (Eg: transaction happening within Maharashtra)

SGST: 

Collected by the State Government on an intra-state sale (Eg: transaction happening within Maharashtra)

IGST: 

Collected by the Central Government for inter-state sale (Eg: Maharashtra to Tamil Nadu)

UTGST: 

Union Territory Goods & Services Tax – Applicable if you are in union territory in replacement with SGST.

Cess : 

Applicable on certain items in addition to the above GST.

Collect GST Taxes:

Define GST Taxes:

Intra state-:

1) State to State Sale/ Purchase       👉         CGST & SGST (Both)

Ex-Up to Up Sale/Purchase

Inter State-:

2) State to other State (Not Local) Sale/Purchase     👉          IGST (Only)

Ex-Up to Gujrat Sale/Purchase

GST Tax Rate

There are five slabs fixed for GST Rates - 0%, 5%, 12%, 18% and 28%

Common Nil Rated or 0% GST Products:

Milk, eggs, curd, buttermilk, Fresh vegetables and fruits, Un-branded wheat and rice, un-branded flour, Puja Items

 

Items under GST 5% 

Frozen Vegetables and fruits, branded wheat and rice, branded flour, hand-made safety matches, cotton, cotton fabrics, Footwear below Rs.500 etc.

Items under GST 12% 

Butter, Cheese, Dry fruits, mobile phones, ayurvedic products etc.

Items under GST 18% 

Biddi wrapper leaves, biscuits, footwear exceeding Rs. 500, man-made fibre, hair oil, soap, toothpaste etc.

 

Items under GST 28%

Biris, LED TV, AC, Cars, tobacco products, cement etc.

GSTIN (GST Identification Number)

GSTIN, or Goods and Services Tax Identification Number, is a 15-digit alpha-numeric code that your firm gets after being registered under the GST regimen of India. If the annual turnover of your business exceeds the threshold limit or the firm does inter-state business, you should mandatorily apply for the firm’s GSTIN. 

Structure of GSTIN

GSTIN number is a 15-digit code representing several particulars about the business, including its PAN number, state of business, etc. Following is the breakdown of the GSTIN structure:

 

1) First two digits indicate the state where the business is located.

2) Following ten digits are the PAN number of the business or its owner.

3) Next digit is the entity number under the same PAN number.

4) The 14th number is ‘Z’ by default.

5) The last number is a check code that helps in detecting errors.

HSN/SAC Code

HSN/SAC Code HSN (Harmonized System of Nomenclature) is developed by the World Customs Organization (WCO). These codes are used to classify the goods and are accepted across the world. HSN codes help in filling the GST returns, import and export of goods.

They are similar in the countries that are under the WCO. 6-digit HSN codes are typically used for the goods. However, some countries use 8-digit codes to sub classify goods.

Mobile Telephone HSN Code  :851712

GST

Gateway of Tally

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F11 Feature

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Enable and Goods and services Tax (GST)         ?    YES

Default Ledger

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Stock Items

Gateway of Tally

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Create

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Inventory Master

Stock Item

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Samsung J2

Under- King Mobile Shop

Unit- Nos

Statutory Information

GST Applicable                     - Applicable

Set/Alter GST Details           ?  Yes  

Types of Supply                    -Goods