Recording GST for Different Types of Supplies (Intra-state, Inter-state) in Tally Prime
Goods and Services Tax (GST) is a consumption-based tax levied on the sale of goods and services in India. It applies differently based on whether the transaction is intra-state (within the same state) or inter-state (between different states). In Tally Prime, you can easily record GST for both types of supplies by properly configuring the GST settings and using the appropriate tax ledgers. This article will guide you through the process of recording GST for intra-state and inter-state supplies in Tally Prime, with real-world examples.
1. Understanding Intra-state and Inter-state Supplies
- Intra-state Supply: When goods or services are sold within the same state, the GST applicable is split into two components: CGST (Central GST) and SGST (State GST).
- Inter-state Supply: When goods or services are sold between two different states, IGST (Integrated GST) is applicable.
The type of supply (intra-state or inter-state) determines the GST treatment in terms of tax ledger creation and recording in Tally Prime.
2. Configuring GST in Tally Prime
Before recording transactions, ensure that GST is configured correctly in Tally Prime. Here’s how to configure it:
Step 1: Enable GST
Go to Gateway of Tally → F11: Features → Statutory & Taxation → Enable GST
Set Enable Goods and Services Tax (GST) to "Yes".
Press Ctrl + A to save the configuration.
Step 2: Create GST Tax Ledgers
You need to create GST tax ledgers for CGST, SGST, IGST, and any other relevant taxes. Here’s how to create them:
Go to Gateway of Tally → Accounts Info → Ledgers → Create
Under Group, select Duties and Taxes.
Create the following tax ledgers:
CGST: Set the tax rate (e.g., 9%) and the Type of Duty/Tax as "GST".
SGST: Set the tax rate (e.g., 9%) and the Type of Duty/Tax as "GST".
IGST: Set the tax rate (e.g., 18%) and the Type of Duty/Tax as "GST".
Press Ctrl + A to save each ledger.
3. Recording GST for Intra-state Supplies
In the case of intra-state supplies, the GST is split into CGST and SGST. Let’s walk through a step-by-step example of recording an intra-state sale transaction.
Real Example: Intra-state Sale
Suppose you are selling goods worth ₹10,000 (exclusive of GST) to a customer located in the same state. The GST rate applicable is 18% (9% CGST and 9% SGST).
Voucher Type: Choose "Sales" voucher from the voucher menu.
Party Name: Select the customer's name.
Item: Select the item you are selling, e.g., "Office Supplies".
Amount: Enter the sale amount of ₹10,000.
GST Calculation: Tally will automatically calculate CGST and SGST. For ₹10,000 at 18% GST, the total GST will be ₹1,800 (₹900 for CGST and ₹900 for SGST).
Tax Ledgers: Select the created CGST and SGST tax ledgers in the GST section. Ensure that Tally calculates and splits the tax correctly.
Save the Entry: Press Ctrl + A to save the transaction.
The total sale amount is ₹10,000 + ₹1,800 = ₹11,800, and you can view this sale in the Sales Register.
4. Recording GST for Inter-state Supplies
In inter-state supplies, IGST is applicable instead of CGST and SGST. Let’s go through a step-by-step example of recording an inter-state sale transaction.
Real Example: Inter-state Sale
Suppose you are selling goods worth ₹10,000 (exclusive of GST) to a customer located in a different state. The GST rate applicable is 18% IGST.
Voucher Type: Choose "Sales" voucher from the voucher menu.
Party Name: Select the customer's name.
Item: Select the item you are selling, e.g., "Office Supplies".
Amount: Enter the sale amount of ₹10,000.
GST Calculation: Tally will automatically calculate IGST. For ₹10,000 at 18% GST, the total GST will be ₹1,800.
Tax Ledger: Select the created IGST ledger in the GST section. Ensure that Tally calculates the IGST correctly.
Save the Entry: Press Ctrl + A to save the transaction.
The total sale amount is ₹10,000 + ₹1,800 = ₹11,800, and you can view this sale in the Sales Register.
5. Viewing GST Reports for Intra-state and Inter-state Transactions
After recording the sales transactions, you can view the GST liability and tax reports for both intra-state and inter-state transactions.
Step 1: View Sales Register
Go to Gateway of Tally → Display More Reports → Sales Register
This report will show a list of all sales, including intra-state and inter-state transactions. You can filter the report based on the nature of the transaction.
Step 2: View GST Reports
Go to Gateway of Tally → Display More Reports → Statutory Reports → GST Reports
Here, you can view reports such as GSTR-3B or GSTR-1 to track the GST paid on intra-state and inter-state sales.
6. Summary
To summarize:
Intra-state transactions require CGST and SGST, while inter-state transactions require IGST.
Ensure that GST tax ledgers (CGST, SGST, IGST) are created in Tally Prime before recording transactions.
Use the "Sales" voucher to record both intra-state and inter-state sales in Tally Prime.
View GST reports to ensure proper tax calculation and compliance.
7. Conclusion
Properly recording GST for intra-state and inter-state supplies is essential for compliance with GST laws. By following the steps outlined in this article, you can efficiently record and manage GST transactions in Tally Prime, whether the transaction is intra-state or inter-state.