Complete details about GST and types with tally prime

GST (Goods and services tax)

  • Before GST, VAT (Value added tax) was applicable,
  • Government of india started collecting GST on 1st July 2017.
  • Tax collected from the firm or company that deals in the goods and services is called GST.
 
As we know there are two types of businesses.
  • one who deals in goods and
  • other one who deals in services.

When a firm or company apply for a GST 

After specified turnover(Total sale), a firm or company need to register for a gst number.

GST Number

It is also known as GSTIN (Goods and Services tax identification number)
 
GST number has 15 digits.
 
Example:
GSTIN number of CAPSCOM TECHNOLOGY Pvt. Ltd.
05AAGCC7402F1Z2
  • Where first two digit is state code : 05
  • Next 10 characters are PAN number : AAGCC7402F
  • Next 1 digit signifying number of registeration : 1
  • and Next 2 character having default value and checksum : Z2

GST slabs on Goods

  • Exempted (Tax free) items
    Grains like Rice, Eggs, Stamp paper, newspaper, bread, salt, vegetables, etc.
  • 5% GST items
    Sugar, Tea, Sweets, spices, Gas, Coal, Cycle, Juices, LPG, etc.
  • 12% GST items
    Namkeen, Color book, Combs, Pencils, Ghee, LED lights, etc.
  • 18% GST items
    Hair oil, Camera, Speaker, Soft drinks, etc.
  • 28% GST items
    Shampoo, Perfume, TV, cement, watches, detergent, etc.

GST slabs on Services

  • Exempted (Tax free) items
    Metro, bus, education, health, electricity, house rent, etc.
  • 5% GST items
    AC train tickets, cab services, advertising in print media, etc.
  • 12% GST items
    Food in non ac restaurants, Hotel rental between 1000 - 2500/day, etc.
  • 18% GST items
    Phone bills, Banking, Insurance, AC restaurants, etc.
  • 28% GST items
    Cinema tickets, water parks, Five star hotels and restaurants, sports events like IPL.

List of ledgers

  1. Purchase
    1. Purchase exempt
    2. Purchase GST (CGST+ SGST)
    3. Purchase IGST exempted
    4. Purchase IGST
  2. Sale
    1. Sale exempt
    2. Sale GST (CGS + SGST)
    3. Sale IGST Exempted
    4. Sale IGST
  3. CGST
  4. SGST
  5. IGST

Record following entries

Purchase goods from own state according to the below list.

Item Qty GST Rate Rate/unit Amount
Rice 1232 100 KGS 5% 60 6000.00
Wheat 2022 200 KGS 5% 18.15 3630.00
      Taxable 9630.00
      SGST 481.50
      CGST 481.50
      Total invoice value 10593.00

Purchase goods from other state according to the below list.
Item Qty GST Rate Rate/unit Amount
Rice 1000 100 KGS 0% 60 6000.00
Wheat 2000 200 KGS 0% 18.15 3630.00
      Total invoice value 9630.00

Purchase goods from own state according to the below list.

Item Qty GST Rate Rate/unit Amount
Rice 1000 5 KGS 0% 60 300
Wheat 2000 15 KGS 0% 15 225
      Total invoice value 525

Sold goods in own state according to the below list.

Item Qty GST Rate Rate/unit Amount
Rice 1000 10 KGS 5% 60 600
Wheat 2000 20 KGS 5% 15.15 310
      Total invoice value 910.00
      CGST 22.75
      SGST 22.75
      Round off .50
      Total value 956.00

Sold goods in other state according to the below list.

Item Qty GST Rate Rate/unit Amount
Rice 1000 5 KGS 0% 60 300
Wheat 2000 15 KGS 0% 15 225
      Total invoice value 525
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