Summary of Post
- 1 What is Local sale (intra state) and Interstate sale?
- 2 How to enter Local Sale entry under GST ?
- 3 Creation of Ledgers for GST Sales entry
- 4 Creating sales ledger for GST sale entry
- 5 Party ledger sundry debtor ledger creation for GST sale voucher
- 6 GST tax ledger creation CGST & SGST
- 7 Create Stock Item for GST sale entry
- 8 How to Enter GST Local sale voucher ?
- 9 How to print GST sale Invoice/Bill?
- 10 How to print multiple number of copy of GST invoice ?
- 11 How to Enter GST inter state sale voucher ?
- 12 Sale Ledger creation for interstate sale
- 13 Party ledger creation for GST interstate sale
- 14 Creating Integrated Tax ( IGST) Ledger?
- 15 Create Stock item & Unit
- 16 How to enter Interstate sale voucher ?
After Activation of GST & Tax rate & HSN /SAC setup ;let’s learn How to enter GST sales voucher in tally erp 9. This is similar to the sale entry we have earlier created , but with some settings change for GST Implementation. GST sale entry includes GST local sale billing & GST Inter state sale billing. and how to print GST sale invoice or sale bill.
GST rules comprise two types of Invoices.
- Tax Invoice : Tax invoice under GST is an invoice issued by a registered person at the time of removal of goods or in case of movement of goods. or at the time of delivery or making it available to recipient in any other case.( Where there is no movement of goods involved and In case of Service). GST Act also makes it mandatory that any registered person buying goods or services from unregistered person shall issue a payment voucher as well as a tax invoice.
- Bill of Supply : A registered person selling exempted goods and services( GST rate zero) or availing composition scheme shall issue Bill of Supply.
Learn More About : Sale Voucher Entry
What is Local sale (intra state) and Interstate sale?
Local sale : Local sale or intra-state sale is where the seller is registered and place of supply of goods are in same state . Local sale attract taxes CGST & SGST . CGST shall be deposited to central government and SGST shall be deposited to state government.
Interstate Sale : A sale is called interstate when the location of supply and place of delivery is in different states. This types of sale attract tax called IGST. This tax revenue is shared by both state government and Central government.
How to enter Local Sale entry under GST ?
Before we start, GST Tax rate and HSN codes can be set at various levels of tally erp 9.
- If you have the same HSN or SAC and tax rate for all the goods and services, then all you need to do is simply set these values at the Company level once and it is done.
- If a specific group of items attract a rate different from the one specified at company level then you can also configure the HSN/SAC at the Stock Group level. The rate specified at the group level is applicable to all the items in that group.
- If just a few items in a stock group attract a different rate, then set up rates and HSN/SAC at the stock item level for those stock items. This will override the rates specified at the stock group level.
- If you would like to apply the same HSN/SAC and tax rate for different type of transactions, you can specify HSN/SAC and rate at ledger group level for Sales, Purchase, Expense and Income groups.
- For specific scenarios like transfer of exempt goods to branches within the state, you may want to change the tax applicability in a transaction to exempt type. Then you can configure these details at ledger level. Or when you want to segregate sales or purchase of items or services for types of transactions. Using the same set of items and ledgers, you can modify the Nature of Transaction at the transaction level.
In below example we are setting up gst rate at stock item level assuming few items in a stock group attract different tax rate & hsn.
On 01-01-2018 ; ABC Ltd Sold 100 Pieces of Wrist Watches @ Rs 1200 ( HSN :9102) GST Rate : 18 % to Time Center . Both ABC Ltd & Time centre are in same state.
We can begins with scratch,
At the time of company creation make sure that you have selected the right state
Now we need to activate GST in tally to do this go to
- Gateway of Tally > F11 Features > F3 Statutory
- Enable Goods & Service tax (GST) :Yes
- Set Alter GST Details : Yes , Enter state registration type GSTIN/UIN etc.
And save the screen.
Learn More about : How to activate GST in tally erp 9
Creation of Ledgers for GST Sales entry
We should create the following ledgers to enter GST sales voucher
- Sales Ledger (Sales Account)
- Party Ledger ( Sundry Debtors)
- CGST Ledger ( Duties & taxes )
- SGST Ledger ( Duties & taxes)
Creating sales ledger for GST sale entry
Lets name it Local sale go to
- Gateway of Tally > Accounts Info > Create
- Name : Local sale
- Under: Sales Accounts
- IS GST Applicable : Yes
- Set/alter GST Details : No ,here we are not setting GST Rate and other details ,We can set it at stock item level.
- Type of Supply : Goods
The sales ledger creation screen is as shown in the below images.
Press enter & save the screen.
Party ledger sundry debtor ledger creation for GST sale voucher
- Name : Time Center
- Under : Sundry Debtors
- Maintain balance bill by bill : Yes
In mailing details
Set/alter GST details : Yes, GST details screen will appear.Enter
Registration Type , GSTIN/UIN and other details
Now press enter and save all screens.
GST tax ledger creation CGST & SGST
In local sale seller has to collect CGST ( Central Goods & Service Tax ) and SGST (State Goods and Service Tax ). Lets learn How to create these tax ledgers in tally erp 9.
Creating State tax SGST Ledger
Go to Gateway of Tally > Accounts Info > Create
- Name : SGST
- Under : Duties & Taxes
- Type of duty /tax : GST
- Tax type : State Tax
- Inventory Values are affected : No
- Percentage of calculation : 0 ( here do not enter any tax rate)
Rounding Method : Select rounding method & rounding limit. The SGST ledger creation screen looks like this.
Press enter and save.
Creating Central tax CGST Ledger
- Create CGST Ledger in the same way as mentioned above, Only change is
- Name: CGST
- Select tax type as : Central Tax
Below is the screen shot of CGST ledger creation
Now save the screen by pressing Ctrl + A or enter Key.
Create Stock Item for GST sale entry
We are creating stock item for GST transactions. We are setting tax rate and HSN code at stock item level. If your company is dealing with multiple products with different gst rates and HSN Codes setting GST RATE &HSN /SAC Codes at stock item level is desirable. If you are dealing a single products with same gst rate and HSN/SAC code,then set GST rate /HSN code at company level.
Learn More about : setting GST Rate setting up and HSN /SAC and Find HSN /SAC
Create stock item for GST
- Go to Gateway of Tally > Inventory Info >Stock Item > Create
- Name :Wrist watch
- Under : Primary ( Here You can create a stock group by pressing alt+c leave as it is )
- Unit : You can select stock unit , if not already created press Alt +C shortcut key to create one.
Read How to create unit of measure in tally
The unit creation screen will appear, Create Pieces as unit if you are selling in pieces as described in the below image. Right UQC Code must be selected during stock item creation. This is important while filing GST Return in GST Portal.
Enter and accept the screen. the unit will have created. Now you are in Main screen of stock item creation.
- GST Applicable : Applicable
- Set/alter GST Details : Yes ( This is where we can set GST Rate & HSN /SAC )
- GST Details screen will appear. PRESS F12 CONFIGURE & activate the following options
- Allow HSN/SAC details : Yes
- Show All GST tax types : Yes
Press enter & accept the screen.
Now enter GST details of stock item.
HSN/SAC : 9102
Calculation type : On Value /On Item rate whichever you want.
Taxability : Taxable
Integrated Tax : Enter Total GST Rate 18 , Tally will split the state tax and central tax.
Press enter and save ,you will be back to stock item creation screen.
Type of supply : Goods
Enter opening balance if any, The final screen look like below.
Press enter and save the screen.
How to Enter GST Local sale voucher ?
Now we have created all the masters required for entering GST sale voucher. Please note that the GST Voucher and auto calculation of CGST & SGST will work only from Applicable date entered in the GST activation screen.
Let’s enter this transaction
On 01-01-2018 ; ABC Ltd Sold 100 Pieces of Wrist Watches @ Rs 1200 ( HSN :9102) GST Rate : 18 % to Time Center .
- Go to Gateway of Tally > Accounting Voucher > F8 Sales
- Select the date by pressing F2 Date button.
- Enter Reference Number if Any.
- Select Party Name under Party A/c Name. Hit enter Key, Party details screen will appear, enter all the details required for delivery and transportation as shown below.
Press enter and save the screen to come back to sales voucher.
Select Sales ledger as created : ‘Local sale ‘ Press enter , A tax classification details will appear.
Press enter and save.
Select items selling : Wrist watch
Enter Quantity, Rate, The amount will be auto calculated, Hit enter Key twice from Amount field after selecting all items.
Select GST Tax ledger CGST & SGST , The tax amount automatically calculated.
Press Enter Key and accept the
Before saving ,Lets print the GST local sale invoice/bill.
How to print GST sale Invoice/Bill?
GST law makes some fields in Invoice mandatory ,they are , Invoice Number , Date ,Name of customer,Billing Address, Shipping Address, GSTIN of Buyer and seller. Place of supply, HSN Code/SAC Code. Item details, Taxable value, discount if any, Tax Amount.
No of copies of Invoice
Three copies are required for sale of goods Original for Buyer, Duplicate for transporter and triplicate for Seller. In case of supply of service; two copies are required, Original For Service Receiver and duplicate for Service provider.
How to Print GST invoice ?
Click on Print Button of GST sales voucher or Press Alt+P, (Access the sales voucher in alteration mode if you have already saved the voucher).
The Voucher Printing Dialogue box will appear.
To get more printing options Click F12 Configure button , the printing configuration screen will open in-front of you.
You can see so many GST related options in the configuration screen, If you Press F12 Configuration once again you will get more options
Activate the GSTIN , HSN/SAC ,Taxable Values, and other options as required by GST law. Press enter and accept the screen. You will get back to printing dialogue box.
How to print multiple number of copy of GST invoice ?
In the printing dialogue box Press Alt + C or click on copies
A new box will appear.
Enter Number of Copies : 3
Type of Copy : Triplicate for Goods ( Only if Transporter copy is required other wise select duplicate) & Duplicate for Service Invoice.
Press enter and save the box, you will again return back to Print dialogue box ,Now press enter ,The invoice will have printed.
How to Enter GST inter state sale voucher ?
Now let’s do an interstate sale entry with an example.
On 01-01-2018 ABC Ltd ( Kerala) Sold 1000 Kg Aluminium wire ( HSN-7605 – GST Rate 18 %) @ Rs 150 /KG to Sree Murugan Metal ( Tamil Nadu ).
To do this entry you have to create the following Ledgers & Stock items.
- Sales Ledger (Sales Account)
- Sree Murugan Metals Ledger ( Sundry Debtors) Location should be Tamil
- IGST Ledger ( Duties & taxes ) Integrated tax ledger. Here is the screen shot of all three ledgers required.
Sale Ledger creation for interstate sale
Party ledger creation for GST interstate sale
While creating party ledger, you should enter the right state in the Mailing details. and enter the Party GSTIN in GST details.
Creating Integrated Tax ( IGST) Ledger?
For interstate sale Integrated tax IGST is applicable which will be shared among state and central government. Let’s see how to create integrated sale ledger.
Under : Duties & Taxes
Type of duty/tax : GST
Tax type : Integrated Tax
Hit enter key & save the screen.
Create Stock item & Unit
Here is the unit creation screen shot
Stock Item creation for IGST Sale
Gateway of Tally > Inventory Info> Stock Item > Create
Name : Aluminium Wire
Units : KG
GST Applicable : Applicable
Set/alter GST Details : Yes — GST Details screen will appear.
Save the screen, you will be back to stock item creation
How to enter Interstate sale voucher ?
All masters are ready now, let’s enter this interstate sale transaction into tally. to do this
Go to Gateway of Tally> Accounting Vouchers > F8 Sales
Enter the following details
Ref Number if any
Party A/c Name : Murugan Metals ,press enter key enter despatch details ,order details and buyer details in supplementary screen.
Sales Ledger : Interstate Sale (Select the sales ledger created for interstate sale ) Press enter ,the tax classification screen will appear.
Select Interstate Sale Taxable
Name of Item : Aluminium Wire, enter quantity rate
In the next line select IGST ledger, the tax will be calculated automatically.
Press enter & save the screen.
Now we have covered Local sale & Interstate sale.