GST Practice

http://tallyerp9book.com/TallyERP9-Transaction/GST/Index-GST.html Calculation of GST ( IGST, CGST & SGST)

Example 1 : The following Transaction has been done by the Swayam Education Pvt. Ltd.Based on this transaction compute the GST payable to the Government. 1.         Purchase from Raj Infotech-Local Dealer, 5 CDs of Antivirus Software @ Rs. 800 each, with Input GST rate @ 18%. i.e. Rs.. 720 -  [ CGST (9%) Rs.360 and SGST (9%) Rs.360 ] 2.         Purchase from Microtek India Ltd.-Local Dealer , 10 Monitors @  Rs. 4000 each, with Input GST @ 28% i.e. Rs.11,200 – [ CGST (14%) Rs.5600 and SGST (14%) Rs. 5600. ] 3.         Purchase 2 ‘Hp-Laptop’ @ Rs. 45,000 with Input IGST @ 18% i.e. Rs. 16,200. and 2 Mi-Note 4 Mobiles @ Rs. 10,000 each with Input IGST 12% i.e. Rs.2,400 –  in Cash from  Outside State – West Bengal from Registered Dealer ( with GSTN – 22AAAAA0000A1Z5 ) . 4.         Sale of 5 Antivirus Software CDs @ Rs.1500 to Rajib Roy & Sons with output GST 18% i.e. Rs. 1350 – [CGST (9%) Rs. 675 and SGST (9%) Rs.675 ] 5.         Sale of 10 Monitors @ Rs.4500 , to H. Goenka Traders with Output GST @ 28% i.e. Rs. 12600 – [ CGST (14%) Rs. 6300 and SGST (14%) Rs. 6300 ] 6.         Sale of 2  ‘Hp-Laptop’ @ Rs 50,000 with Output GST @ 18% i.e. Rs.18,000 [ CGST (9%) Rs.9,000 and SGST (9%) Rs.9,000 ] in Cash within State  7.         2  Mi-Note 4 Mobiles Outside State @ Rs. 15,000 each with Output IGST 12% i.e. Rs. 3600  in Cash to a Party in Outside State i.e. Andhra Pradesh.   Solutions : For PURCHASE & PAYMENT : IGST CGST SGST For Transaction 1 : GST paid to party on assessable value of Rs.4,000 @ 18 % GST is Rs. 720 360 360 For Transaction 2 : GST paid  to Party on the assessable Value of Rs. 40,000 @ 28% GST is Rs. 11,200 5600 5600 For Transaction 3 : IGST paid on the assessable Value of Rs. 90,000 @ 18% GST is Rs. 16,200 &  Rs. 20,000 @ 12% GST is Rs. 2,400 [ 16200+2400] 18600 Total of Input GST [ IGST, SGST & CGST] 18600 5960 5960 For SALES : For Transaction 6 : GST received from Party on assessable value of Rs. 7,500  @ 18% GST Rs. 1350 675 675 For Transaction 7 : GST received from Party on assessable value of Rs. 45,000 @ 28 % GST Rs. 12600 6300 6300 For Transaction 8 : GST received on the assessable Value of Rs. 1,00,000 @ 18% GST is Rs. 18,000. 9000 9000 For Transaction 9 : IGST received on the assessable Value of Rs. 30,000 @ 12% IGST is Rs.3600 for sale outside State. 3600 Total Output GST [ IGST, SGST & CGST] 3600 15,975 15,975 2- Table of GST Adjustment with Journal Voucher Entries Particulars IGST CGST SGST Output GST Liability 3600 15,975 15,975 Less : Input GST Credit Input CGST 5960 Input SGST 5960 Input IGST 3600 10015 4985 Amount Payable i.e SGST only NIL NIL 5030 Any IGST credit will first be applied to set off  IGST and then CGST. Balance if any will be applied to setoff SGST. So out of total input IGST of Rs. 18,600, firstly it will be completely setoff against IGST i.e. 3600. Then balance Rs.15,000 against CGST i.e. Rs. 10015 and remaining Balance of Rs. 4985 against SGST From the total Output GST Rs.35,550, only Output SGST of  Rs. 5030 is payable. So the Set-Off Entries will be - 1.         Setoff against CGST Output             Output CGST A/c  Dr. ………                                    15975                         To        Input CGST       A/c                                                       5960                         To        Input IGST         A/c                                                       10015 2.         Setoff against SGST Output             Output SGST A/c  Dr. ………                             15975                         To        Input SGST       A/c                                                       5960                         To        Input IGST         A/c                                                       4985                         To        Output SGST Payable   A/c                                          5030 3.         Setoff against IGST Output             Output IGST A/c  Dr. ………                               3600                         To        Input IGST         A/c                                                       3600 4.         Final Payment of Output SGST Payable of Rs. 5030             Output SGST Payable A/c  Dr. ………                5030                         To        Bank                 A/c                                                       5030 3- How to Activate GST for your Company in Tally.ERP9 To use Tally.ERP 9 for GST compliance, you need to activate the GST feature. Once activated, GST-related features are available in ledgers, stock items, and transactions, and GST returns can be generated. To activate GST 1.    Open the company for which you need to activate GST. 2.    Press F11 > F3. 3.         Enable Goods and Services Tax (GST) - Yes. 4.         Set/alter GST details - Yes. State: Displays the state you have selected for your company. Helps in identifying local and interstate transactions. If you change the state, it will be updated in the company details. 5.         Specify the GSTIN/UIN for the business. This can be printed in the invoices as required. You can specify this later. 6.         Specify Applicable from date. GST will be applicable for your transactions from this date onwards. You can record transactions using the ledgers with GST details, and print invoices with GSTIN. Calculation Of GST ( IGST, CGST & SGST) For PURCHASE & PAYMENT : IGST CGST SGST For Transaction 1 : GST paid to party on assessable value of Rs.4,000 @ 18 % GST is Rs. 720 360 360 For Transaction 2 : GST paid  to Party on the assessable Value of Rs. 40,000 @ 28% GST is Rs. 11,200 5600 5600 For Transaction 3 : IGST paid on the assessable Value of Rs. 90,000 @ 18% GST is Rs. 16,200 &  Rs. 20,000 @ 12% GST is Rs. 2,400 [ 16200+2400] 18600 Total of Input GST [ IGST, SGST & CGST] 18600 5960 5960 For SALES : For Transaction 6 : GST received from Party on assessable value of Rs. 7,500  @ 18% GST Rs. 1350 675 675 For Transaction 7 : GST received from Party on assessable value of Rs. 45,000 @ 28 % GST Rs. 12600 6300 6300 For Transaction 8 : GST received on the assessable Value of Rs. 1,00,000 @ 18% GST is Rs. 18,000. 9000 9000 For Transaction 9 : IGST received on the assessable Value of Rs. 30,000 @ 12% IGST is Rs.3600 for sale outside State. 3600 Total Output GST [ IGST, SGST & CGST] 3600 15,975 15,975 TABLE OF GST ADJUSTMENT : Particulars IGST CGST SGST Output GST Liability 3600 15,975 15,975 Less : Input GST Credit Input CGST 5960 Input SGST 5960 Input IGST 3600 10015 4985 Amount Payable i.e SGST only NIL NIL 5030 Any IGST credit will first be applied to set off  IGST and then CGST. Balance if any will be applied to setoff SGST. So out of total input IGST of Rs. 18,600, firstly it will be completely setoff against IGST i.e. 3600. Then balance Rs.15,000 against CGST i.e. Rs. 10015 and remaining Balance of Rs. 4985 against SGST From the total Output GST Rs.35,550, only Output SGST of  Rs. 5030 is payable. So the Set-Off Entries will be - 1.         Setoff against CGST Output             Output CGST A/c  Dr. ………                                    15975                         To        Input CGST       A/c                                                       5960                         To        Input IGST         A/c                                                       10015 2.         Setoff against SGST Output             Output SGST A/c  Dr. ………                             15975                         To        Input SGST       A/c                                                       5960                         To        Input IGST         A/c                                                       4985                         To        Output SGST Payable   A/c                                          5030 3.         Setoff against IGST Output             Output IGST A/c  Dr. ………                               3600                         To        Input IGST         A/c                                                       3600 4.         Final Payment of Output SGST Payable of Rs. 5030             Output SGST Payable A/c  Dr. ………                5030                         To        Bank                 A/c                                                       5030 Acticating GST for your Company in Tally.ERP9 To use Tally.ERP 9 for GST compliance, you need to activate the GST feature. Onceactivated, GST-related features are available in ledgers, stock items, and transactions, and GST returns can be generated. To activate GST 1.    Open the company for which you need to activate GST. 2.    Press F11 > F3. 3.         Enable Goods and Services Tax (GST) - Yes. 4.         Set/alter GST details - Yes. State: Displays the state you have selected for your company. Helps in identifying local and interstate transactions. If you change the state, it will be updated in the company details Updating Stock Items and Stock Groups for GST Compliance in Tally.ERP9 If the items you sell have different tax rates, update your stock item masters or stock groupswith the applicable GST rates, and select the type of supply, as applicable. To Update a Stock Item In case you need different tax rates for different items, modify the stock items to include the applicable tax rates. 1.     Go to Gateway of Tally > Inventory Info. > Stock Items > Alter > select the item. 2.    Set/alter GST Details: Yes to specify the details in the GST Details screen, and save. Note: If you have modified the tax rates before, press Alt + L to view the history of tax rate changes. 3.    Select the Type of supply. 4.    Press Ctrl + A to save. >> Create & Setup the GST Rate of the following Stock Items as per above Setup >> Name of Items UoM GST Rate Monitors Pcs 28% Hp- Laptop Pcs 18% Mi Note-4 Mobiles Pcs 12% Antivirus Software CDs Pcs 18% To Update a Stock Group 1.    Go to Gateway of Tally > Inventory Info. > Stock Groups > Alter > select the group. 2.    Set/alter GST Details: Yes to specify the details in the GST Details screen, and save. Integrated Tax: When you enter the integrated tax, state tax and central tax are calculated as half of the integrated tax specified. You can change state tax or central tax by using F12configuration. 3.    Press Ctrl + A to save. Setting Up GST Rates (Stock Group-wise) in Tally.ERP9 Quickly set up GST rates for your company, stock item-wise or stock group-wise, using the GST Rate Setup option. You must enable GST in your company to provide GST rates. You can set up GST rates at the company level, stock group level, stock item level, ledgergroup level, and ledger level. A-      To Set GST Rates for Stock Groups and Stock Items 1.         Go to Gateway of Tally > Display > Statutory Reports > GST > GST Rate Setup 2.         Select the stock group or stock item, and press Alt+S to provide the applicable tax rates. You can press Spacebar to select multiple stock groups or stock items. Set the tax rates and save. The rate entered for integrated tax will be equally divided between central tax and state tax. To view the history of tax rate changes, press Alt + L.