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In normal course business we sells goods and service as a combination or bundle.Such as combination of goods or combination of services or combination of both goods and services as part of the primary goods. For example A Insurance policy is selling along with a Two wheeler. Here primary or predominant part of sale is Two wheeler Secondary or ancillary part is Insurance service. These Kind of naturally bundled sale is called composite sale or composite supply as per GST rule. The primary part of this kind of sale is called Principal supply and the
How to find out the tax rate of Composite sale?
As per GST law, each and every taxable products and service has its own rate. But in the case of a composite sale we sell more than goods/services as a part of principal supply ,In single bill we sell different product and services or its combinations.Hence the rate of principal supply is applicable to all products and services in a composite sale bill. So to fix the tax rate of composite sale you must know the principle supply. As per GST rule section 2(90) of CGST Act defines principle supply as “the supply which constitutes the predominant element of composite supply and to which any other supply forming a part of that composite supply is ancillary”. But if you are finding difficulty to find out the principal supply you can bill each products or services in a different invoice.
Composite supply in Tally ERP 9
Earlier we had a detailed tutorial on GST sale entry. We recommend to read this post to get an idea about how to enter gst sale voucher in tally erp 9. In this tutorial we describe how to enter composite supply or composite sale under gst.
Example : ABC Ltd sells the following items to SLV Constructions along with Transportation charges.
1000 No TMT Steel Rebar 12MM @ 400/No
300 Bundles Steel footing 1.45 m 12 MM @ Rs 1450 Bundles.
Transportation Charges Rs 3000.00
Follow the below steps as described in our previous post GST Sale voucher entry
- Activate GST in Tally ERP 9
- Create Sales Ledger for GST
- Create Party Ledger for GST
- Create the GST tax ledger CGST, SGST & IGST
- Create Stock item for GST
- Set GST rates & HSN SAC Codes
- Create a service ledger transportation for composite supply, This is the secondary supply or ancillary supply ledger to participate in the composite sale or supply.
How to create secondary supply service ledger for composite supply.
Go to Gateway of Tally > Accounts Info. > Ledgers > Create .
Name: Transportation charges
Under: Indirect Expense.
Is GST Applicable? – Not Applicable . A new option will appear “Include in assessable value calculation “.
Include in assessable value calculation for : GST .
Appropriate to : Goods (If the principal supply is goods then select goods here,If the principal supply is service then select service.
4. Press Ctrl+A to accept.
Now we are ready to enter the composite supply in tally erp 9.
How to enter composite Supply /Sale ?
- Go to Gateway of Tally> Accounting Voucher > F8 Sales
- Select the date of voucher entry by pressing F2 Date
- Party A/c Name: SLV Constructions.
- Sales Ledger: Select the sales ledger you want to post the transaction.
- Enter name of items, rate ,amount & enter twice
- Now select Transportation charges, TAx ledger ,for local sale CGST & SGST and for interstate sale IGST Ledger.
- The final sale voucher of composite supply look like this.
Press enter key to save the composite sale voucher.
View GST details from sale voucher
You can get the gst tax details from sale voucher by pressing shortcut key ALT+A, (A : Tax Analysis)
Now click detailed button or ALT+F1 to get the detailed tax analysis report as shown below.
Hope you got how to enter a composite supply sale voucher in tally erp 9.