Tutorial Summary
- 1 GST basics for Accountants
- 2 GST Tax structure
- 3 GST in tally ERP 9
- 4 How to enter sale entry
- 5 How to enter Local Sales under GST rules in tally erp 9 ?
- 6 How to record a local sales transaction
- 7 View GST details
- 8 Printed Invoice Format under GST rule
- 9 How to enter Interstate Sales voucher entry in tally under GST
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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.
How to Issue final Gst invoice against advance payment.
hi
Previously we had customization for printing on pre-printed paper.
But now even after we updated to GST, my printing customization is still there. the sales invoice print is still coming in old customized format.
how to overwrite it with the GST Format.
Please help.
very helpfull site
hi
Previously we had customization for printing on pre-printed paper.
But now even after we updated to GST, my printing customization is still there. the sales invoice print is still coming in old customized format.
how to overwrite it with the GST Format.
Please help.
Dear Sir,
I am trying to print different HSN CODE with same tax rate in single invoice but in print preview there is only one. request yo to kindly guide me. how to print different HSN code with same tax rate in single invoice.
sir
Potential Mistake in the amount for GST !!
Please give me reason
Antony.D
can you send invoive format in excel on my mail id?
Dear Sir
Sir
Error occur in TALLY ERP 9
“Potential Mistake in the amount for GST !!”
Please give the suggestion to rectify the problem.
Note : Sales Invoice Printout time this comment “Potential Mistake in the amount for GST !!”
Thank You
D.Antony
good invoice
Sir how to print rate inclusive of gst tax in sales invoice?
how to create mrp based tax invoice in gst tally