GST(TALLY NOTES PART-7)

 

GOODS AND SERVICE TAX

On the theory of “one Nation One tax” ,government of India has  introduce Goods and Service tax , popularly known as GST from 1^st July 2017 with the consent of different State GST has removed the defect of multiple tax System . Hence,goods and Service tax has been clasified into different categories and the rate of GST has been fixed for each class of Goods and Service ranging from 0% to 28% .now central Sales tax and different taxes leived by States has been replaced by GST except alcohol for human consumption and petroleum products.

Features of GST

1.There is leived on Supply of goods and Service but excise duty  or(CST /VAT ) were leived on manufacturing or Sale of goods and rendering of Service.

2.Credit of input taxes paid at each stages will be available as subsequent stage of value addition. Therefore ,tax shall be paid  only on every level of production .

3.GST paid at the time of purchased is an asset Since it can be set off against GST collected on Sales.

Types of GST

There are three types of GST

1.Central GST(CGST)

2.State GST (SGST) or union Territory (UTGST)

3.Integrated GST (IGST)

1.CENTRAL GST (CGST) :- CGST is applicable on intra – state Supply i.e,

              Supply of goods and service in the Same State .

2.STATE GST (SGST ) OR UNION TERRITORY  GST(UTGST) :-

SGST    or      UTGST is also supply i.e ,Supply of goods and Service within Some State.

3.INTEGRATED GST(IGST) :- IGST is applicable on inter Supply i.e , Supply of goods and Service between state.

NOTE:- a)Import and export of goods and service shall be treated as Inter State Supplies .Hence,IGST shall be applicable on these Supplies.

 b)CGST and SGST are applicable at half of the preseribed State of tax . For example if rate of GST is 12%, 6% will be leived as CGST and 6% as SGST(or UTGST)
CLASSIFICATION  OF GST FOR ACCOUNTING PURPOSE

1.INPUT CGST/SGST – Input CGST/SGST is paid on inter –state purchase (Supply) of goods and Services and off against output CGST/SGST i.e,GST collected on sales.

2.INPUT IGST – Input IGST paid on inter State purchase of goods and Sevices and Set –off against output IGST i.e,GST Collected .

3.OUTPUT CGST /SGST :- Output CGST/SGST means GST collected on inter State sales or Supply of goods and Services.

4.OUTPUT IGST – Output IGST means GST collected on inter State or   Supply of goods and Services.

Order to Setting off input Gst i.e ,GST paid against output GST i.e, GST collected is as following :-

1.INPUT CGST – set off against

a) Firstly output SGST

b)If balance , remaining output IGST

2.OUTPUT SGST – Set off against

a)First output SGST

b) IF balances remaining output IGST
3.INPUT IGST – Set off against

a)Firstly output IGST

b)Then,CGST and SGST

*GST is leived at the rate prescribed by the government .

*GST (CGST,SGST, and IGST) paid on purchase is adjusted against the GST collection is a liability at the firm.

*Excess of GST collected over GST paid is deposited in the government Account.

*If GST paid is one or then excess collected then the excess GST paid is carried forword to the next year as recoverable.

 

 

 

JOURNAL ENTRIES

1.When GST paid at the time of purchase.

Purchase A/c………………………….Dr

GST paid A/c/Vendor A/c……….Dr

                  To Cash /Bank/Creditor A/c

(Being goods purchase and GST paid recorded)

2.When GST collected at the time of Sale.

Cash/Bank/Purchase A/c……………….Dr

                           To Sales A/c

                         To GST collected A/c

(Being Sales made and GST collected)

3.When GST is paid to the government

a)For Adjustment of GST paid against GST collected

  GST collected A/c…………..Dr

       To GST paid A/c

(Being adjustment made for GST collected and GST paid)

B)For depositing the balance amount in government A/c

GST collected A/c………….Dr

        To Cash/bank A/c

(Being Xecess of GST collected deposited into government A/c)

 

LONG ANSWER TYPE OF QUESTION :-

Journalise the following tranjection in the books of M/s Priyanka Sales.

1.Purchase goods from Samuel Rs.50000 less trade discount of 20% plus GST 10%.

Purchasae A/c……………….Dr. 40000

GST paid A/c…………………Dr.4000

        To Samyel’s A/c              44000

2.Sold goods costing Rs.15000 to Raman for Rs.20000 plus GST 10%

  Raman’s A/c ……………….Dr 22000

           To Sales                          20000

         To GST collected A/c      2000

3.Sold the balance goods for RS.40000 and charged GST 10% against cheque.

Bank A/c ………………..Dr.44000

      To Sales A/c                40000

     To GST collected A/c   4000

4.GST was deposited into government Account on due date

  GST collected A/c……….Dr.4000

        To GST Paid A/c            4000

GST collected A/c …………..Dr.2000

            TO cash /Bank A/c

1.what is Journal ?

Journal is a book of original entry in which preliminary record of both aspects of a business tranjection is made systematically and data wise as per rule.

 

 

2.What is trade discount ?

Generally the term discount is used for trade discount .Trade discount is allowed by manufacture to the wholeseller or by the wholeseller to the retailer on the list price or catalogue price of goods .It is allowed to buyer to enable him to sell the products (goods) at the market price and yet make a profit for himself.

Trade discount is offered both on cash sales and on credit sales. It is directly deducted from cash memo in cash of cash sales and from the invoice in case of credit sale .

3.What is cash discount ?

Cash discount is allowed to the Customers for quick payment . Sometime cash discount is allowed if the Customer makes payment eithin a specified time .Such discount motivates the Customer to payment at the earliest.

These Cash discount = (list Price - T.D)*Rate of C.D/100

List Price - Trade discount = Invoice Price

Invoice Price - Cash Discount = Net Price

 

 

*How to Enable GST ?

GOT - Press F11 - (F3) Statutary & Taxation Enables Goods and Service Tax (GST) = Yes

Set /Alter GST details  = Yes

                                      Accept

LEDGER

1.Capital A/c - Capital A/c

2.Ram’s(creditor local ) - Sundry Creditor

         Maintain balances bill -by-bil ? Yes

        Country   -   India

      State        - Jharkhand

Tax Registration detail

Set /Alter GST Details = Yes

GST Details

Registration Type = Regular

NUMBER

GST IN /UIN = 20AAAAA1234A1Z5(For ex!)

Party type = Not applicable

3.Shyam (creditor Inter State) = Sundry Creditor

    Bill by bill   = Yes

  Country        = India

   State      = CHHATTISGARH

  Set /Alter GST Details = Yes

GST Details

Registration No. Type = Regular

GSTIN /UIN =  22AAAAA1234A1Z5

Party type  = Not Applicable

4.Mohan (Debtor Local) = Sundry Debtor

    Bill-by bill =  Yes

   Country     = India

  State         =  Jharkhand

Tax Registration Details

Set/ Alter GST Details ? Yes

GST  Details

Registration type = Regular

NUMBER

GSTIN/UIN = 20AAAAA1234A1Z5

Party type = Not Applicable

5.Deepak Com. Gujarat(In State)  = Sundry Debtor

 Maintain balance  bill-by-bill  = Yes

 

Country  = India

State     = Gujarat

Tax Registration Details

Set/Alter GST Details =  Yes

GST Details

Registration type = Regular

In a e-commerce operator = No

GSTIN/UIN = 24AAAAA12341Z5

Party type = Not Applicable

                                  Accept

 

6.Purchase (local within State) - Purchase A/C

Inventary Value are affected = Yes

Statuary information

Is GST Applicable = Applicable

Set /Alter GST Details = Yes

Type of Supply = Goods

                                 Accept

 

 

7.Purchase (Inter State) - Purchase A/C

Inventory value are affected = Yes

Statutary Information

Is GST Applicable  = Applicable

Set/Alter Details = Yes

Type of Supply = Goods

                                 Accept

 

8.Sales Local - Sales A/C

 Inventory Value are affected  = Yes

Statutary Information

Is GST Applicable = Applicable

Set/ Alter GST Details = Yes

Types of Supply = Goods

                                      Accept

9.Sales Inventory State - Sales A/c

Inventory value are Affected = Yes

Statutary Information

Is GST Applicable  = Applicable

 

Set /Alter GST Details = Yes

Types of Supply = Goods

                                      Accept

 

10.CGST (Central Goods and Service TAX)

  Under  = Duties & Tax

 Types of Duties/Tax = GST

Tax Type  = Central Tax

Inventory Value are affected = NO

Percentage of Calculation = According to Product GST Tax rate

Rounding Method = Not applicable

11.SGST ( State Goods & Service Tax)

  Under  = Duties & Tax

 Types of Duty/Tax = GST

 Tax Type   = State GST

Inventory Value are affected  = No

Percentage of Calculation = According to Product GST tax rate

Rounding Method = Not Applicable

12.IGST(Integrated Goods & Service Tax)

Under = Duties & Tax

Types of duty/tax  = GST

Tax Type = Integrated Tax

Inventory Value are affected = No

Percentage of Calculation = According to product GST Tax rate

Rounding Method = Not Applicable

GO to Inventory Info

Stock Group - create = Name : Monitor

Under = primary

Should Quantities of Item be Added = Yes

Set/Alter GST Details = Yes

 

 

GST Details for Stock Group

  MONITOR

HSN/SAC Details

Description : Computer Monitor

HSN/SAC : 123456

In Non- GST GOOds = No

 

 

TAX DETAILS

Taxability = Taxable

Tax Type	Valuation Type	Rate
Integrated tax	Based on Value	18%
Central tax	Based on Value	9%
State Tax	Based on value	9%
Cess	Based on value	0%

 

Unit of Measures(Create)

Type : Simple

Symbol : Nos

Formal Name : Number

Unit quantity Code(UQC) : NOS- Number

Number of Decimal Place : 0

Stock Item (Create)

Name = L.G Monitor

Name = Sony Monitor

Under = Monitor

Units = No.

Alter Component(BOM) =No

Alter Standard rate = No

GST Applicable = Applicable

Set /Alter GST Details = YES

Types of Supply = Goods

GST Details for stock item

Same as above information

*Go to Inventory Voucher F6 (Receipt Voucher)

  Cash A/C………………………..Dr.500000

             To Capital A/c                       500000

Create Purchase Entry (F9)

INVOICE NO. - 01

Party type =Ram’s Sons Ranchi Local

Purchase ledger = Purchase( Local with State)

Name of item	Quantity	Rate	per	Amount
L.G Monitor	10nos	1000	Nos	10000
CGST		9%		90000
SGST		9%		90000
			Total	11800

                                                                                                           Accept

 

INVOICE NO :- 02

Party type = Shyam CHATTISGARH (IN STATE)

Purchase Ledger = Purchase inter State

Name of item	Quantity	Rate	Per	Amount
L.G Monitor	10Nos.	1000	nos	10000
IGST		18%		1800
			Total	11800

                                                                                                          Accept

SALE - 01

Party type = Mohan & Co.

                       BOKARO (LOCAL) Dr.

Sales ledger - Sales local

Name of item	Quantity	Rate	per	Amout
L.G Monitor	5nos.	3000	Nos.	15000
CGST		9%		1350
SGST		9%		1350
			Total	17700

 

 

4.SALES - 2

 

Party Name - Deepak And Com.

                       Gujarat(In State)

Sales Ledger - Sales Inter State

Name of Ledger	Quantity	Rate	Per	Amount
L.G Monitor	1 nos	3000	Nos.	15000
IGST		18%		2700
			Total	17700

 

F5(Payment)

Press F12

Use Single…………………No.

Amount = Cash

Press = Alt + S      

 

 

 

STATUTORY PAYMENT

Tax  type = GST

Period from = 1 April 18 - 31 Mar 19

Payment type = regular

Particular	Debit	Credit
Dr. IGST	900
Dr. CGST	450
Dr. SGST	450
Cr. Cash		1800

 

Provide GST Details = Yes

According to user choose option for mode of payment

For Example :- Cash = Balance Sheet

                                         Current liabilities

GST

RATHORE PVT. LTD

Address :- @121 ,HARMU ROAD RANCHI - 834001

We are dealing in mobile phone

 

1.Rathore PVT. Ltd. sales one mobile phone on 01/07/17 gross value of mobile phone is Rs. 15000/- and charge GST @ 12% (Rs 1800) total value Rs.16800 invoice on 01/11/17 to 18 to Mr. Gourab in Ranchi as

local sales .Please make sales invoice in appropriate manner under GST.

2.Rathore PVT. LTD. Sales to same mobile phone of gross Value dated 01/7/2017.Rs 10000 each and charge IGST @12% Invoice no. 2/17 - 18/T1 to Mr. Rishav , he line in  UTTAR PRADESH (up) pass  the necessary entry.

3.On 1^st July 2017 Mobile Solutions Ltd. Sales 5 mobile Phone Costing Rs.6000 each and chage GST @12% on cost (invoice no:- 06/p1/2017)

to Rathore PVT. Ltd. Mobile Solutions Ltd. establish  in Ranchi . Pass the necessary entry .

4.Rajeev ltd. (Uttar Pradesh ) Sales 4 mobile Phone on 1^st July 2017 , costing  Rs.7000 each charge IGST @ 12% Invoice no:- 03/T1/17-18 to Rathore Pvt. Ltd. make Sales entry.

 

How to Check

Go to B/s - C.L - Duties Tax - Press F12 , Yes show Trans ………then

looking - Sales - Purchase Detail

 

 

 

 

GST

                                                                                                                                                                                                              

The following transcation has been done by the Swayam education Pvt. Ltd. Based on this transcation compute the GST Payable to the Government.

1.Purchase from Raj Infotech - local Dealer , 5 Cos of Antivirus Software @Rs800 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 Monitor @ 4000 each with Input GST @ 28% i.e, Rs.11200 {CGST (14%) Rs.5600 and SGST(14%) RS.5600}.

3.Purchase 2 ‘HP - LAPTOP’ @ RS45000 with Input IGST @18% , i.e, Rs.16200 and 2 MI- Note 4 mobile @ Rs 10000 each with Input IGST 12% i.e, Rs 2400 in cash from outside State - West Bengal from Registered Dealer ( with GST IN - 22AAAAA0000A1Z5)

4.Sale of 5 Antivirus Software CDS @ Rs.1500 to Rajiv Roy sons with output GST 18% i.e, Rs.1350 - CGST(9%) Rs.675 and SGST (9%) - Rs675.

5.Sale of Monitor @ Rs.4500 to H.Goenkar Traders with output GST @ 28% .i.e, RS. 12600 - GST (14%) - RS.6300 and SGST (14%) Rs.6300 -CGST

6.Sale of @ HP-Laptop @ Rs.50000 with Output GST @ 18% i.e , Rs.18000 CGST (9%) Rs9000 and SGST (9%) Rs.9000 in cash within State.

7.2MI- Note 4 Mobile output IGST 12% i.e, Rs.3600 in Cash to a party in

outside  State i.e, Andhra Pradesh .

HOW TO CHECK

Go to B/S - C.L - Duties & taxes - Press F12 , Yes Show trans …….Then looking - Sales - Purchase details.

 

 

THE END