Goods & services tax implication in tally ERP 9

 

Implementation of goods and services tax

When talking about GST big question arises “how GST applied”.

Goods and services tax is proposed system of indirect taxation in India. The concept behind the introduction to new tax regime, merging most of the existing taxes into a simple system of taxation.

 

Introduction of goods and services tax in India

It was introduced by 101 amendment in constitution act 2016 the chairman of the gst bill introduced by finance minister. It was held that gst would be comprehensive indirect tax for manufactures self-consumption of goods and services. Throughout India to replace the different tax levied by the central and state government goods and service tax would be levied and collected at each stage of sale or purchase of goods and services based on the input tax credit.  

Impact goods and services tax.

By following this method it has allowed business to register themselves to take benefit of the scheme and endeavor to government better collection of tax from the customers.

The business will be able to take benefit of claiming tax credit to the value of which they have paid on gst purchases of goods and services are not distinguished from one another the part will be attached till the goods and services reach to consumers who will pay GST tax.

 

Administration of indirect taxation in India

GST administration.

India being a federal country where center and state have power to levy and collect taxes through respective legislation. It was reason of a dual GST is implemented keeping in mind federalism.

 

Types of GST

                           Goods and services tax

CGST                                                     SGST

                                IGST

 

CGST – it is stand for central goods and services tax levy and collected by central government.

 

SGST – it stand for state goods and services tax and levy and collected by state government.

 

IGST – it is stand for integrated goods and services tax levy and collected by central government and share with state amount tax collected.

 

Goods & services tax implication in tally ERP 9

 

Here is step by step procedure to GST entries in tally.

step 1: create a new company or choose your exiting company.

step 2: press f11 key select inventory feature enable: maintain godown yes

             stock category  yes

then press f3 for selecting statutory and taxation enable: Goods and services option yes 

            set\alter gst option yes

 step 3:  Go back to gateway of tally then press f12 after that select invoice\ order entry enable : calculation for current subtotal yes

 

 

 step 4 : Go back to gateway of tally select a/c info---> ledgers 

1. purchase a/c  under  purchase a/c (gst option yes).

2. sales a/c        under  sales a/c    (gst option).

3 input CGST a/c under duties and taxes (gst option).

4. input SGST a/c under duties and taxes (gst option yes).

5. Input IGST a/c under duties and taxes (gst option yes).

6. Output CGST a/c under duties and taxes (gst option yes).

7. Output SGST a/c under duties and taxes (gst option yes).

8. Output IGST a/c under duties and taxes (gst option yes).

9. Debtors a/c(party's name) under sundry debtors.

10. Creditors a/c(party's name) under sundry creditors.

11. Bank a/c      under        bank accounts.

Step 5: Back to gateway select inventory info and create stock.

e.g. stock group - electronic
Stock category - HP.
Stock item - computer
Godown - Delhi.

step 6: Back to gateway of tally select inventory voucher then press f9 for purchase voucher for passing purchase entries.

press f8 for sales voucher for passing sales entries.

press f5 for payment voucher.

press f6 for receipt voucher.

step 6: Go back to gateway of tally -->display-->statutory report -->GST analysis.