How to enter Local purchase & Interstate Purchase under GST in tally erp 9

 

In this session we will learn How to enter purchase or Inward supply under GST in Tally ERP 9. We have chosen two types of purchase for this tutorial. 

  1. Local Purchase :As per GST rule Local purchase is the movement of goods and services within the state that is Intra-State is called local Purchase. For local purchase CGST & SGST is applicable.
  2. Interstate Purchase : It is the movement of goods and services between two states, Which means the buyer and seller exists in two different states of India. This type of purchase attracts IGST only.

Example For GST Local Purchase 

V-Traders ( Delhi) Purchases 100 Coir Mattress  ( HSN CODE – 94041000 ) Bharath Traders ( Delhi) @ 150/ Mattress + 18 % GST on 01-08-2017.

Lets enter this local purchase in Tally ERP 9.

Activate GST in Tally ERP 9

To activate GST, Go to

Gateway Of Tally > F11 Features > F3: Statutory & Taxation 

Activate the following options

Enable Goods and Service Tax ( GST) :Yes

Set/Alter GST Details : Yes ( Do not set rate at this level)

Enter the details as shown below.

GST activation

Know more About Activation Of GST in Tally

Setup GST rates for purchase voucher entry

You can setup GST rate at various level of Tally, at company level ,stock group level,stock item level,ledger group level,ledger level etc. In this tutorial we are setting GST at stock item level.

To set up GST rate at stock item level Go to

Gateway of Tally > Inventory Info > Unit of Measure > Create

Here we can choose No ( Number ) as unit.and UQC is NOS-NUMBERS

create unit for stock item

Now let’s create stock item coir mattress

To do this go to

Gateway of Tally > Inventory Info > Stock Item > Create

  GST in tally erp 9, how to setup/configure gst in tally ?

Enter the details as shown in the below image

stock item creation

Set/alter GST Details : Yes, Press enter GST rate details  as shown below

GST details for stock item

If all the options shown above are not visible to you Press F12 :Configure Button and enable the options you want.

When you add tax type , enter integrated tax as 18 % as per our example, the Central tax and state tax will shown automatically.

Press enter to save all the screens o create stock item

Know How to setup GST rates

Create Purchase Ledger

To create a purchase ledger, you have to go to

Gateway of Tally>Accounts info > Ledger > Create

Let’s name this Purchase ledger as Purchase-GST,  Enter the details as shown below and save the screen to create purchase ledger.

Purchase ledger creation for GST

Create GST tax ledger CGST & SGST for Local purchase

Now we need tax ledgers for purchase entry. As mentioned earlier local purchase attracts Central tax ( CGST) and State Tax ( SGST) You have to create these tax ledgers, to do this go to,

Gateway of Tally> Accounts Info> Ledger> Create

Enter the CGST details as shown below

Name : CGST

Under: Duties&taxes

Type of duty/tax :Central Tax

cgst-ledger creation

In the same manner create SGST Ledger also

Create SGST Ledger

Create Suppliers  (Sundry Creditors) Ledger for Local Purchase.

For local purchase the supplier should be in the same state of the buyer,Let’s create the supplier ledger Bharath Traders as per this tutorial.

To do this go to

Gateway of Tally>Accounts Info> Ledger > Cretae

Enter the details as shown below.

Name : Bharath Traders

Under: Sundry Creditors

State : Delhi ( This should be accurate for gst purchase entry )

Supplier ledger creation for gst purchase

set/alter GST details : Yes, press enter key ,the GST Details screen will pop-up

Registration type : select the GST registration type of Supplier whether composition , consumer , Regular or unregistered. let’s select it as a regular dealer.

Is a e-commerce operator : No

GSTIN/UIN : GSTIN of the supplier. see below image.

GST details in party ledger creation

Press enter and save all screens.

How to enter Local purchase under GST

As per GST rules a transaction is said to be Local purchase ,only when the buyer and seller are in the same state, also the transaction attract state tax and central tax. Let’s see how a local purchase transaction is entered.

  How to enter sales of mixed supply under gst in tally erp 9?
  1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase.
  2. Enter the date by pressing F2 Date button.
  3. Enter the supplier invoice number from the purchase bill
  4. Select Party account name ,here bharath traders
  5. Select the purchase ledger we had created.
  6. Enter name of item,here coir mattress
  7. Enter Quantity & rate, the total amount automatically calculated, Press enter key twice.
  8. Select the Central tax ledger and State Tax Ledger. The tax amount will be calculated automatically.

Local purchase voucher entry screen

 

You can view the tax details by clicking A: Tax Analysis. Click F1: Detailed to view the tax break-up.

Tax analysis report

Interstate Purchase under GST

A business is buying goods or service from another state is called interstate purchase. For example National enterprise from KERALA is buying Auto spare parts from Maya Traders DELHI. This is a case of interstate purchase for National enterprises.

Let’s take the following example for Interstate purchase voucher entry.

V-Traders ( Delhi) Purchases 1000 Coir Mattress  ( HSN CODE – 94041000 ) Vignesh Traders ( Tamil Nadu) @ 155/ Mattress + 18 % IGST on 01-12-2017.

For interstate transactions apart from above we need two new ledgers

Create Supplier Ledger for Interstate purchase

This is like normal ledger creation but you have to take care of the state of the supplier, this should be correct other wise the report will not be accurate.

Go to Gateway of Tally> Accounts Info>Ledger create

Supplier ledger creation interstate  purchase

Enter GST details as below

gst details for interstate suppliers

Press enter and save all screens

Create IGST Ledger

To create IGST Ledger, go to

Gateway of Tally>Accounts Info > Ledger >Create

Name : IGST

Under : Duties & Taxes

Type of duty/tax : GST

Tax type : Integrated tax

IGST Ledger creation

Press enter and accept the screen.

Purchase ledger creation for Interstate purchase voucher entry

To create purchase ledger for interstate purchase go to

Gateway of Tally> Accounting Info >Ledger >Create

Enter the details as shown below

Name: Purchase IGST (Let’s name this ledger as purchase IGST)

Under: Purchase Account.

Is GST Applicable : Applicable

set/alter GST Details ?: No

Type of supply : Goods

  What is particulars section in GSTR-1 of Tally ERP 9?

Purchase ledger for IGST

Interstate GST is the tax attracted by interstate purchase.

How to enter interstate purchase voucher ?

  1. Change the date by  pressing F2 shot cut keys
  2. Enter supplier Invoice number
  3. Enter party account name
  4. Enter Purchase ledger
  5. Enter name of item, Quantity & Rate
  6. Press enter twice to select tax ledger & select IGST tax ledger as created earlier.The tax amount is calculated automatically.

The final screen look like this

Interstate purchase voucher entry

Click on Tax analysis to know tax details

Interstate purchase tax analysis

 

How to enter Local purchase & Interstate Purchase under GST in tally erp 9
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