Enter sales voucher under gst & printing invoice format in tally erp 9

GST is the latest tax reformation in India. GST  has subsumed many existing Indirect taxes.In this chapter we will discuss about how to enter a sale entry with gst in tally erp 9. GST sales voucher creation is almost similar to VAT entry in tally. Before we go let’s have some basics of GST.

GST basics for Accountants

GST is an indirect tax levied on goods and services. earlier we had to charge VAT on goods and service tax on services.Now after GST implementation a single tax has come into existence which charges on every addition of value during the process of sale.That is from manufacturer to the end retailer charges GST on the value or profit or margin he adds.The below table will explain how GST work on value addition.

In every stage of the supply chain, you see the seller adds his margin on the base value.for example

Distributor Added Rs 100 on base value and sold for 1298 Including 18% GST. Here effectively;The Distributor need to pay GST on Rs 100.That is Rs 18. How ?

When Distributor buying goods from manufacturer he paid Rs 180 as tax. The distributor can deduct this amount when he is paying tax.

Distributor collected GST                            =  198

Less GST on purchase from manufacturer =  180

Net Tax to be paid to department                =    18

Effectively the Distributor added Rs 100 as margin, this the value addition and he paid tax on 18% of 100 = 18

GST Tax structure

Basically there are two types of sale in GST. Local sale and Interstate sale. Local sale is the sale within a state. Where as interstate sale is the sale happening  between two states.

A Registered seller or  dealer selling products or service within his state,He has to charge State GST & Central GST. We cal it in short as SGST & CGST.

A registered seller or dealer selling products or services to dealer registered in another state attract Integrated GST or IGST.

In short Local sale attract SGST & CGST where as interstate sale attract IGST.

GST in tally ERP 9

Tally provides you a hassle free GST Implementation since Tally ERP 9 realease 6. The latest version when writing this document is Release 6.1.0 .It is always recommend to use latest version as they are updating gst options frequently.

Recommend reading : How to upgrade to Tally ERP 9, Realese 6.

How to enter sale entry

Once you activate GST in your company, you can record the sale of goods and services that attract GST using a sales voucher. In this tutorial you will learn the following

• Local sales
• Printed invoice format
• Interstate sales

How to enter Local Sales under GST rules in tally erp 9 ?

We discussed what is a local sale above.It is the sale of goods and services within the state by a registered user.The sale of goods or services to customers in the same state attract central tax and state tax. Let’s consider the below example of local sale.

Example of GST local sale : National enterprises sold 14 No Dell Personal Computer @ 27500/ No & 8 No HP Pavilion All-in one Computer @ 29900 to  Anand Traders  GST @ 18 % and both registered in Karnataka.

Let’s do this tally erp 9

Activate GST in Tally ERP 9

The first stage of gst sale entry is the activation of GST .To do this go to

Gateway of Tally >F11 Features>F3:Statutory

Enable Goods and service tax (GST) : Yes

Set/alter GST Details: Yes

Enter GSTIN/UIN and other details.

You will get more details about activating GST Here

Set up GST rate & HSN SAC code

In GST each and every products and services has its own gst rate and HSN/SAC codes .You have set the GST rates and HSN Codes in tally erp 9. Based on your business type and products you are dealing you can set GST rates at various levels of tally erp 9.

Set GST/HSN Sac code if most of the products have same HSN & Tax rate.

If a Group of products have same HSN and tax rate set the HSN/Tax rate at stock group level.

If a few items have different HSN/Tax rate set tax rate at stock item level.

Here in our example computers have similar tax rate and HSN Code,We can set the rate at company level

To set GST rate at company level

Go to Gateway of Tally >F11 Features>F3:Statutory

Set/alter GST details: Yes

In the GST Details screen you will find the same option  Set/alter GST details: Yes

You will get another screen where you can define HSN/SAC & Tax rate.

If you did not find HSN/SAC in the screen press F12 configuration, you will find options to activate HSN/SAC options

Press enter & save all screens.

Learn more about GST rates & HSN/SAC settings in tally erp 9 here

Create sales ledger for GST

To create sales ledger for GST sales entry posting go to

Gateway of Tally>Accounting Info> Ledger >Create

Enter name of the sales ledger

Under : Sales Account

Is GST Applicable : Applicable

Set/alter GST Details: No, Here you don’t need to set GST details ,Because we have already set gst rate at company level.

Type of Supply: Goods, In our example the supply is computer not any service so select goods.

Learn More about creating sales ledger for gst here

Create party ledger for GST

To create party ledger go to

Gateway of Tally>Accounts Info> Ledger >Create

Make sure that you have entered the right state of the buyer in the ledger creation screen

Set alter gst details :Yes

Press enter key and save.

You will get more details about creating party ledger for gst here

Creating GST tax ledger

To create CGST tax ledger ,go to 

Gateway of Tally>Accounts Info> Ledger >Create

Enter name : CGST

Under : Duties & taxes

Types of Duty tax : GST,Central tax

To create SGST tax ledger ,go to 

Gateway of Tally>Accounts Info> Ledger >Create

Enter name : SGST

Under : Duties & taxes

Types of Duty tax : GST,State tax

To create IGST tax ledger ,go to 

Gateway of Tally>Accounts Info> Ledger >Create

Enter name : IGST

Under : Duties & taxes

Types of Duty tax : GST,Integrated tax

Here I am adding IGST ledger creation screen shot.

You will get more idea about GST Tax ledger creation here

Creating Stock item for GST

To create stock item go to

Gateway of Tally> Inventory Info>Stock item >Create

Enter the name of the product.

Select the unit of measurement for the product. If you have not created a unit create one by pressing Alt+C. You can learn more about unit of measurement creation here.

You can set GST rate at stock item level if you want. This will help if you have different tax rate and hsn for each products.

Type of supply: Goods

You can learn more about creating stock items for GST here

How to record a local sales transaction

To record local sale

1.  Go to Gateway of Tally > Accounting Vouchers > F8: Sales.

Select Date by pressing F2 or date button.

Party A/c Name: Anand Traders

Select the sales ledger we have created

Select items quantity and rate, after selecting the products

Hit enter key twice to get tax ledger, select the tax ledge both CGST & SGST

 

View GST details

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

6.    In the sales invoice, press Alt+P to print the invoice in the required format.

For multiple copies: Press Alt+P and then Alt+C to select the number of copies.

Printed Invoice Format under GST rule

As per GST guidelines, details such as the applicable taxes and tax rates, and the GSTIN/UIN of the company and the customer will be captured. Depending on your requirements, you can include additional details in your invoice by clicking F12: Configure.

How to enter Interstate Sales voucher entry in tally under GST

Sale of goods or services to a customer in another state attract integrated tax.

To record an interstate sale

●     Follow the steps used for recording a local sales transaction. The only difference is that you have to select the integrated tax ledger instead of central tax and state tax.

Depending on the location of the party, you can record a local or interstate sales transaction with the applicable GST rates, and print the invoice.